HRERA restrains Bank of Baroda from conducting e-auction of commercial project

Taking cognizance of a complaint, Haryana Real Estate Regulatory Authority (HRERA), Gurugram, on Monday passed an order restraining the Bank of Baroda from proceedings with the e-auction that the bank is set to conduct on January 24 in CHD E-Way Tower at Sector 109, Gurugram.

The quorum of the Authority consisting of the Chairman and three members observed that the Bank’s e-auction attempt is devoid of considering and settling the claims of individual allottees who are bonafide stakeholders in the project in question.

The order said, “Bank of Baroda is restrained from the proceedings with the e-auction dated January 24, 2023 being done without considering and settling the claims of individual allottees.”

The order has been passed under Section 36 of the RERA Act 2016.

“Forensic audit of the accounts of CHD Developers Limited should be get done to bring out a clear picture of the utilization or diversion of funds of invested funds concerning the project if any,” said the order.

The bench has also directed the RERA planning branch to initiate proceedings against the developers for non-registration of the above project under Sections 3 and 4 of the RERA Act 2016.

The complaint in this regard was filed on January 20, 2023.

The complainant had booked a unit in the commercial project CHD E-Way Tower at Sector 109 for a total sale consideration of Rs 35,67,452 executing the Builder Buyer Agreement (BBA).

“The allottees were apprised by promoters as well as through newspaper advertisement that the land on which the project is situated measuring 2.025 acres in Sector 109 is being sold by Bank of Baroda by way of e-auction on January 24, 2023, wherein all the allottees share their reserved rights by virtue of BBA. It is submitted that the rights created for the allottees are absolute rights which cannot be fettered by any other third party merely by selling or creating any lieu change or encumbrance,” the order said.

Seeking a stay on e-auctions, the complainant during the hearing argued that the Bank has not only violated Section 15 of the Act 2016 but also tried to harass them and jeopardise the rights of the allottees.

“The third-party rights which have already been created in the project in question have not been taken into the account by the Bank of Baroda that will seriously jeopardise their interest and it must have stayed,” pleaded the complainant.

The Authority observed all the allottees who signed BBA will be affected by e-auctions.

20230123-195202

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