GURUGRAM: In a significant enforcement action within Haryana’s affordable housing sector, an FIR has been filed against a company and its director for financial fraud, licensing infringements, and extensive irregularities.
The Haryana State Enforcement Bureau has lodged the FIR against M/s Ocean Seven Buildtech (OSB) Pvt Ltd and its director, Swaraj Singh, following a complaint from the district town planner (enforcement). This action has led to authorities requesting a lookout circular (LOC) against Singh due to concerns he might flee the country.
The FIR cites violations under Sections 10 and 12 of the Haryana Development and Regulation of Urban Areas Act, 1975, with the investigation assigned to a sub-inspector from HSEnB.
According to the complaint, OSB was issued licenses from 2016 to 2019 for developing three affordable housing projects—located in Sector 109 (7.5 acres), Sector 69 (5.41 acres), and Sector 70 (5.10 acres). These licenses were suspended in February 2023 due to recurring violations.
Buyers have reported multiple sales of the same unit to various allottees, resulting in financial distress for hundreds of families.
The FIR notes that OSB has defaulted on overdue payments amounting to Rs 21 crore linked to the suspended licenses. Despite the suspension, the builder allegedly continued to demand payments from buyers, cancel units, divert funds, and re-sell previously canceled flats.
Investigations revealed that while nearly 95% of buyer payments have been collected, only 62.5% of the construction work has been completed. The projects have been stagnant since 2019, showing minimal progress.
Audits by HRERA flagged manipulated progress reports, and the Department of Town and Country Planning (DTCP) accused the developer of lacking cooperation with forensic audits mandated by regulators.
Moreover, the company is entangled in multiple legal cases, with one resulting in a non-bailable warrant against Swaraj Singh. The DTCP has expressed serious concerns that Singh might abscond to evade legal consequences and financial responsibilities. In light of the violations’ severity, the directorate has contacted the police commissioner to request the issuance of the LOC, informing the Ministry of External Affairs and the Bureau of Immigration. This issue has also been escalated to the Haryana government and the Chief Minister’s office.
In the meantime, buyer associations have called for the invocation of Section 8 of the RERA Act, 2016, which allows HRERA to take control of incomplete projects. “Thousands of homebuyers have invested their life savings but remain in limbo for years. The government must intervene to protect us,” stated one association in its request.
