HomeWhat's TrendingRERA Showdown: Mahira Developers Face Registration Revocation Over ₹300 Crore Deficit!

RERA Showdown: Mahira Developers Face Registration Revocation Over ₹300 Crore Deficit!

In a dramatic turn of events, the Haryana Real Estate Regulatory Authority (RERA) has issued a strict directive to Mahira Developers and its affiliates, demanding the immediate deposit of deficit amounts for its five projects into the escrow account. Failure to comply could lead to the authority revoking the registration of these crucial projects.

The crackdown commenced on February 7, as HRERA registered an FIR against Mahira Developers, vowing to take every necessary step to ensure project completion and provide relief to homebuyers. A senior HRERA official revealed an estimated deficit of over ₹300 crore across the developer’s five projects.

Gurugram HRERA Chairman, Arun Kumar, emphasised the authority’s resolution by directing the developer to deposit funds diverted from RERA project accounts. Kumar stated, ‘We are asking the developer to deposit the money withdrawn from these accounts, and we shall unfreeze the same. If not, we shall proceed with the process of revocation of the RERA registrations of the five projects.’

The Sector 68 project faced a setback on  9 May 2022, when the town and country planning department canceled its license. This triggered a cascade of issues for Mahira Developers, uncovering loopholes in documentation and guarantees submitted to the government. With four additional projects in Sectors 63A, 95, 103, and 104, all currently stalled, the fate of around 5000 invested homebuyers hangs in the balance.

On February 7, HRERA Gurugram lodged an FIR against the developer, accusing the promoter of illegally diverting funds from the escrow account to various entities, including its subsidiaries, thus deceiving innocent allottees. Kumar affirmed, ‘We have lodged a FIR against the developer for diversion of funds and misrepresentation of facts. We will take this matter to a logical conclusion, as a large amount of money belonging to innocent buyers is involved.’

To tackle the economic feasibility of these stalled projects, HRERA has engaged an agency to prepare a comprehensive action plan for their swift completion. Kumar assured, ‘All efforts will be made to ensure these issues are resolved within constraints.’

Surprisingly, Mahira Developers Chairman Sikandar Chhoker remains silent, ignoring calls and messages. Earlier, in response to account freezes by HRERA, Singh, a representative, maintained the developer’s commitment to project delivery despite the current work halt.

As the clock ticks for Mahira Developers, HRERA’s stern warning sets the stage for urgent action, urging the developer to rectify financial discrepancies and salvage the future of these critical projects.

Our RERA legal experts stress the significance of complying with HRERA regulations. ‘Transparent financial practices are paramount for real estate. Failure to address this deficit may lead to severe legal consequences,’ warns a Vakilsearch representative. Homebuyers should seek legal counsel to navigate the complexities of this situation.

In the wake of HRERA’s strict stance, securing legal guidance becomes crucial for developers like Mahira. Vakilsearch offers tailored legal solutions, ensuring compliance with real estate regulations. Safeguard your projects – consult Vakilsearch today for expert legal assistance.

Akash G Varadaraj