GURUGRAM: The Real Estate Regulatory Authority (HRera) has issued a show-cause notice to Ramprastha Promoters & Developers Pvt Ltd, demanding compliance with pending orders or face civil imprisonment.
This action follows the recent arrest of the company’s directors, Arvind Walia and Sandeep Yadav, by the Enforcement Directorate (ED) in connection with a ₹1,100-crore money laundering case involving over 2,000 defrauded homebuyers.
The notice states: “Show cause as to why you, being promoters, should not be detained in civil prison under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016, for a term not exceeding three months for failing to comply with the Authority’s orders.” The hearing is scheduled for August 8.
HRera’s Gurgaon bench has previously issued several orders dating back to 2020, requiring the refund of approximately ₹3 crore to complainants who booked homes over a decade ago but have yet to receive possession.
Despite these rulings, the promoters have repeatedly failed to comply. The ED’s investigation revealed that Ramprastha raised approximately ₹1,100 crore from over 2,000 homebuyers for projects like Edge, Skyz, Rise, and Ramprastha City located in Sectors 37D, 92, and 95 in Gurgaon.
While possessions were promised within three to four years of project launches (2008–2011), many buyers are still waiting for delivery after 14 years.
In light of ongoing non-compliance, HRera issued a production warrant on July 29 for the two directors to be presented before the Authority on August 5. They are currently in ED custody following their arrest on July 21, adding legal weight to concurrent proceedings in the money laundering case.
The ED also discovered the illegal diversion of around ₹140 crore to group companies disguised as land advances and other internal transactions. During search operations, authorities seized ₹18 lakh in unaccounted cash, six luxury cars, froze 34 bank accounts, and valued locked-down assets at ₹681.54 crore.
