Category: Regulatory

Keep up with important regulatory news affecting real estate, including government policies, tax reforms, compliance requirements, and RERA updates. Understand how these regulations impact developers, investors, and buyers.

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CBI Files Sixth Chargesheet Against Shubhkamna Buildtech

NEW DELHI: The CBI has submitted a chargesheet against Shubhkamna Buildtech Pvt Ltd and its directors, marking the sixth such submission in the Supreme Court-directed investigation into the builder-banker nexus case, officials reported on Friday. In its chargesheet, the CBI accused the company and its directors of misleading innocent homebuyers into investing in its Noida project through false assurances, deceptive representations, and misleading promises, thereby wrongfully profiting at the expense of the victims. “The chargesheet has been filed before the competent Court under relevant provisions of the Indian Penal Code related to criminal conspiracy, cheating, criminal breach of trust, and…

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ED raids Punjab CM’s aide in land fraud case; CM denies ties

CHANDIGARH: On Thursday, the Enforcement Directorate (ED) conducted searches at multiple locations in Punjab and Chandigarh, targeting the premises associated with a purported aide of an OSD-rank official in the Chief Minister’s Office (CMO). This operation was part of an investigation into money laundering linked to two real estate groups accused of fraudulent land use changes and scamming investors. Approximately a dozen locations were searched in Mohali (SAS Nagar) and Chandigarh connected to the Suntec City project (developed by Indian Cooperative Housing Building Society – ICHBS) and its promoter, Ajay Sehgal, along with ABS Townships, Altus Space Builders, Dhir Constructions,…

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CBI Files Fifth Chargesheet in Builder-Banker Nexus Case

NEW DELHI: The Central Bureau of Investigation (CBI) has submitted a fifth chargesheet in connection with the builder-banker nexus involving CHD Developers Ltd and its directors for alleged fraudulent activities linked to a project in Gurugram, as reported by officials on Thursday. The CBI, assigned these cases by the Supreme Court, detailed in its report to the court that the company used misleading representations and deceptive promises to attract “innocent homebuyers and investors,” ultimately resulting in considerable financial gains while inflicting wrongful losses. “The charge sheet has been filed before the appropriate court under the relevant sections of the Indian…

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ED Raids Punjab Builders in Land Fraud Case

CHANDIGARH: The Enforcement Directorate (ED) executed searches across various sites in Punjab and Chandigarh on Thursday as part of a money laundering inquiry involving certain builders and real estate firms linked to a suspected land fraud scheme, officials reported. Approximately a dozen locations in Mohali and Chandigarh associated with the Suntec City project, and firms such as Ajay Sehgal, ABS Townships, Altus Builders, and Dhir Constructions are currently under examination under the Prevention of Money Laundering Act (PMLA). Sources indicate that a person named Nitin Gohal is also being investigated by the ED, as he is accused of assisting builders…

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Indiabulls Real Estate: Four Firms Settle ₹10.5 Crore with Sebi

NEW DELHI: Market regulator Sebi announced the settlement of proceedings against four entities involved in an alleged fund diversion case linked to the former Indiabulls Real Estate Ltd (IBREL), with a total settlement of approximately ₹10.49 crore. The entities—Agnes Developers Pvt Ltd, Everlast Projects Pvt Ltd, Lincoln Developers Pvt Ltd, and Deneb Developers Pvt Ltd—resolved the issue “without admitting or denying the findings of fact and conclusions of law,” as stated in the settlement order. Following the merger of Indiabulls Real Estate Ltd with Bengaluru’s Embassy Group, Embassy became the primary promoter of IBREL, later rebranding it as Embassy Developments…

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Bombay HC Panel: 400K Residents in Risky Buildings

MUMBAI: A committee appointed by the Bombay High Court has described it as a “miracle” that thousands of residents are still living in structurally unsafe buildings. The report raises serious concerns about the deteriorating condition of Mumbai’s ageing cessed structures, citing significant delays in redevelopment and a critical shortage of rehabilitation housing. The committee estimates that around 400,000 tenants occupy 12,552 cessed buildings in Mumbai, many of which are in poor condition and awaiting redevelopment. Prolonged legal disputes and insufficient transit accommodation have forced residents to remain in these unsafe environments. The risks were starkly highlighted when committee members narrowly…

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CBI Charges AVJ Developers, Bank Officials in Homebuyers’ Scam

NEW DELHI: The CBI has filed a chargesheet against AVJ Developers (India) Pvt Ltd, based in Greater Noida, along with bank officials and others for allegedly defrauding financial institutions and homebuyers, officials announced on Wednesday. In the chargesheet submitted to a special CBI court, the agency has named AVJ Developers, its sister company Kesar Builders Pvt Ltd, their directors, officials from Bank of India, UCO Bank, and ICICI Bank, as well as proxy homebuyers as co-defendants. The case revolves around the “large-scale cheating of homebuyers” by builders and public servants, resulting in significant losses to both financial institutions and unsuspecting…

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Bombay HC: Late NOC requests for construction near defense sites invalid

MUMBAI: The Bombay High Court has ruled that a no objection certificate (NOC) for construction near defense installations cannot be insisted upon after the fact. The court ordered relevant authorities to issue an occupancy certificate for two residential buildings near INS Trata. The bench, comprising Justices G S Kulkarni and Aarti Sathe, noted in a ruling on May 5 that requirements for an NOC from defense authorities should be applied in a fair and reasonable manner as per legal standards. The court mentioned that if claims regarding security concerns from the defense were valid, proactive measures should have been taken…

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Gujarat: Popular Builders Owner Denied Bail in Forgery Case

AHMEDABAD: A sessions court denied bail to 67-year-old Dashrath Patel, owner of Popular Builders, concerning a 2022 land fraud case. Currently imprisoned at Sabarmati Central Jail, Patel is accused of conspiring to forge land records for a sale deed from 1983 in Godhavi village. Patel’s legal representative contended that the issue is primarily civil and pointed out that the FIR was lodged almost 39 years after the alleged event without sufficient justification. He also mentioned that all evidence is documentary, with no forged documents featuring Patel’s signature or handwriting. His age, health conditions, cooperation with investigators, and the fact that…

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ITAT Grants Capital Gains Tax Exemption for In-Law Property

MUMBAI: In a landmark decision regarding capital gains tax exemptions, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that buying a residential property from close relatives should not be categorized as a sham transaction solely due to the tax advantages it may offer. The tribunal granted a ₹41.5 crore exemption under Section 54F to an individual who purchased a flat from her in-laws, overturning the tax department’s assertion that the transaction was merely a facade. Section 54F permits individuals to exempt long-term capital gains from the sale of any asset, other than a residential house, provided…