NEW DELHI: The Supreme Court has requested responses from the Haryana government and Mahira Buildwell (previously Czar Buildwell) after a group of homebuyers from economically weaker sections accused the developer of fraud in an affordable housing project in Gurgaon under the Pradhan Mantri Awas Yojana (Urban).
The petitioner association has alleged that Czar Buildwell and its successor Mahira obtained licenses through deception, including submitting forged bank guarantees and falsifying signatures. They further claimed that the builder completed only 5-7% of the construction, misappropriating homebuyers’ funds.
Petitioner’s Claims: Authorities’ Inaction Led to Distress
The Supreme Court is currently addressing numerous cases involving builders who, in collusion with financial institutions and banks, have defrauded homebuyers by misusing the subvention scheme. The Court has mandated a CBI investigation, resulting in 28 FIRs against several builders.
The bench led by Chief Justice Surya Kant also directed Haryana RERA, the Enforcement Directorate, Axis Bank, and Canara Bank to respond to the allegations. The petitioner association stated that its members contributed significant sums to the developer for standard housing units. They asserted, “Due to the lack of due diligence by competent authorities and their indifferent attitude towards enforcing statutory protections, our members have faced substantial hardships, financial strain, and mental stress. Despite the developer consistently collecting funds, there has been no timely construction as required by the scheme.”
“Even after numerous complaints, representations, and contempt proceedings, the respondent authorities, including the Central Government, Haryana, the Director of Town and Country Planning, HARERA, and banking institutions, have taken no effective action,” they stated.
