No Project Auction without Homebuyers, Authority Approval: HARERA

Announcing a landmark judgement, Haryana Real Estate Regulatory Authority (HARERA), Gurugram has ensured, that no bank or financing agency would auction or sell a loan defaulting project to recover adjustment of allottees dues. Chairman, HARERA Gurugram, Dr. K.K. Khandelwal said, that there has been a rampant increase of complaints in the state—in which a peculiar trend was noticed—where promoters mortgage their project, land or structure, as well as all receivables from the sold and unsold inventory to lend organisations or financial institutions, banks or creditors, in order to attain bank loans to fund the construction costs for developing the projects. But when the promoters fail to repay the loans, then the financial insitutions, banks, or creditors, directly auction residential or commerical properties that have been pledged with them to recover loans from borrowers by invoking the SARFAESI Act, 2002. "Such auctions invoke great anguish and distress to the allottees of the project as there is no acknowledgement of the huge investments made by the allottees into buying their dream home. The future of such allottees is in complete darkness and obscurity. Such aggrieved allottees are bound to languish for their own hard-earned money. The latest judgement in interest of the allottees of the project "Supertech Hues," is the first of its kind in the nation," said Khandelwal.