Delhi Builder Abandons Decades-Long Commercial Project

Representative AI image
Representative AI image

NEW DELHI: After more than thirty years of failing to construct and deliver promised commercial units in Plaza-4 of the Central Square Complex at Bara Hindu Rao, the builder has notified Delhi RERA that it is unable to complete the project and has effectively “abandoned” it due to a lack of sanctioned building plans.

According to a Delhi RERA order dated May 12, recently uploaded to its website, the attorney for Purearth Infrastructure Ltd stated this during a hearing involving complaints from three buyers. The builder’s counsel indicated their willingness to refund allottees as per the RERA 2016 regulations. RERA Chairman Anand Kumar and member Devesh Singh directed Purearth’s counsel to formally acknowledge the project’s abandonment.

Purearth Infrastructure is a joint venture between DCM Ltd and Singaporean investors.

The company’s announcement has shocked many buyers, who have been waiting for years for the promised commercial units in central Delhi. A senior executive at Purearth stated, “Due to several pending litigations, including those with the MCD, construction cannot proceed. Therefore, we will refund buyers along with interest as required by RERA law.”

Some buyers expressed that they were unaware of the builder’s intention to abandon the project. “In their Annual Report for 2024-25, they claimed the flatted factory project ‘Central Square’ comprises four plazas with completion certificates for three of them, which are fully operational, while plaza no-4 is still in the works. We expect the company to deliver the units as promised,” one buyer said.

Another buyer highlighted that even after MCD approved the building plan for plaza-4 in May 2010, the company failed to initiate construction within the five-year validity period.

Earlier this year, it was reported that the site intended for plaza-4 remains an unexcavated pit. The company previously told TOI that “discussions with municipal authorities regarding Plaza-4 are ongoing, as we seek increased parking and greater height allowances to enhance green spaces. We intend to commence construction as soon as we receive the necessary approvals.”

The commercial units are to be built on prime land that once housed the Delhi Cloth & General Mills (DCM) industrial complex, a significant textile manufacturing site. RERA orders had pointed out that the builder had consistently marketed, advertised, and sold the units at Central Square as part of a commercial business park while being aware that the land classification was for “flatted factory.”

  • Published On Jun 30, 2026 at 08:40 AM IST

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