Gurgaon: Haryana Real Estate Regulatory Authority (HRera), Gurgaon, has directed Czar Buildwell Private Limited to refund Rs 14.5 lakh along with interest at 10.8% per annum to a buyer of a flat at its Mahira Homes project in Sector 104 after it was found the developer’s registration was cancelled two years ago and the project had been stalled since then.The ex parte order, passed by HRera chairperson Arun Kumar on July 17, came as a response to a complaint by Sanjeet Kumar, who had booked a 642 sq ft unit in the affordable housing project for a total of Rs 26 lakh. According to his complaint, he had paid more than half the total amount after an allotment letter was issued in Dec 2021.However, when he followed up with the developer and visited the site to check on the construction work, he found little progress. He then refused to pay instalments any further and asked for a refund. His request was met with repeated delays and several promises asking him to “wait 10 to 15 days more” to get back the money, he claimed.Even before Kumar’s complaint, the company had been facing action for several non-compliance issues. In May 2022, HRera had initiated suo motu action against Czar Buildwell after a site visit found only excavation work under way for three of the project’s towers. The director of town and country planning had also blacklisted the developer that month over alleged forged bank guarantees — a decision later withdrawn subject to conditions.The company’s accounts were frozen in July 2022 for non-compliance with Rera Act, 2016, and the authority eventually revoked the project’s Rera registration in March 2024 under Section 7(1) of the Act.HRera held that this revocation meant the promoter had to shut down operations completely. It entitled the complainant to invoke Section 18(1)(b) of Rera Act, which allows for a full refund with interest even before the due possession date lapses. The authority noted the project’s due possession date was not until April 2026, but ruled the buyer’s right to refund was triggered regardless, given the developer’s licence status and inability to sell any unsold inventory.The developer did not appear before the authority despite being served notice by both email and speed post, prompting the ex parte (where only party is present) proceeding. HRera gave Czar Buildwell 90 days to comply, warning of legal consequences if it defaulted on payment.
