Gurugram: Appellate Tribunal gives verdict in favour of Hues project financiers

By City Spidey
Photo: City Spidey
Posted: May 04, 2019

Providing relief to the financiers of the Hues project in Gurugram, the Haryana Real Estate Appellate Tribunal has set aside an order from the local bench of the real estate regulatory authority (RERA) to register a criminal case against them, alleging ‘misappropriation of funds’.

The tribunal took the decision as it observed the initial order was against the principles of ‘natural justice’ as the accused were not issued any show cause notice or given the opportunity of putting forth their views.

According to a report published in the Economic Times, the Haryana Real Estate Regulatory Authority (HARERA) in April, this year, directed the police to register a criminal case against Indiabulls Housing Finance Limited, Industrial Finance Corporation of India Limited and PNB Housing Finance Limited for using 70 per cent of the money amassed from the buyers and allottees as it said should be used to complete the project. Further, the authority asked the firms to deposit back the said amount withdrawn from the temporary pass through account, also known as escrow.

Meanwhile, PNB has welcomed the tribunal’s verdict against the order issued by the RERA, Gurugram. The appellate tribunal, in its order, has given the liberty to HARERA to proceed following laid rules, besides the objections of PNB Housing Finance Limited pertaining to jurisdiction.

The tribunal, in its concluding remarks, stated the authority concerned will be able to pass fresh orders after complying with the principles of natural justice.


TAGS: Gurugram news / local news / Hues project / Appellate Tribunal / RERA / order / financiers / misappropriation of funds / compliance / fresh order / issue / PNB / Indiabulls / builders / buyers / allottees