After Getting Relief From HC, Noida-Based Realty Firm Dragged To SC
It has been a year since the Real Estate Act was launched in India with great fanfare. While the reformatory law was expected to wipe all troubles off the face of Indian realty, ground reality is nothing but gloomy. New cases of developers failing to meet their promises are coming to light. Interestingly, most of them are Noida-based developers.
The new entry
At a time when the apex court is already busy hearing high-profile cases of Unitech, Amrapali and Jaypee, another case involving Mist Avenue Pvt Ltd has reached the SC. The apex court has decided to take up for hearing a plea challenging an order of the Allahabad High Court (HC), in which the latter quashed criminal proceedings against promoters of the Noida-based real estate company.
On November 21, 2012, buyer Ashish Gupta deposited money to book a retail shop with the company. The delivery of the commercial unit was promised within two years. According to the buyer, he has paid the builder Rs 3,243,840 through cheques so far.
However, "even after a lapse of more than six years, the construction of the project is at initial stage”. “Now the construction has completely been stopped and the project is lying in a dilapidated condition," Gupta said in his plea.
In his plea filed in 2012, Gupta said company Managing Directors Satinder Singh Bhasin and Mohinder Singh Ahluwalia published multiple misleading advertisements in print and electronic media to lure the homebuyers into investing into the project.
In December last year, the HC quashed criminal proceedings against the builders.
"Criminal prosecution cannot be quashed under the garb of an arbitration clause. The criminal proceedings are independent proceedings, and they cannot be wiped out on the false pretext of an arbitration clause," Singh said in his latest plea.
With inputs from Housing News