Delhi HC Orders Ansal Properties To Deposit Rs 46 Cr By July 31

The Delhi High Court (HC) has directed Ansal Properties and Infrastructure to deposit Rs 46 crore to the court registry by July 31. The move came after the Landmark Property Development and Company in September last year moved the court seeking execution of Rs 165 crore-award that it won in arbitration last September.

In 2004, the two companies had formed a joint venture to construct real estate projects in Ghaziabad, Meerut, and Karnal. However, the two parted ways in 2011. According to their separation agreement, Ansals was to pay Landmark Rs 108 crore with interest, which the company allegedly stopped paying after making part payment. 

In April, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued show-cause notices to Ansal Properties and Infrastructure over alleged fraud and diversion of funds. The notices have been issued to Ansal API's full-time directors Sushil Ansal, Pranav Ansal and Managing Director Anil Kumar.

In October last year, the authority appointed Currie and Brown (C&B) to conduct a forensic audit of the company’s registered projects in state capital Lucknow with a view to investigate into the affairs, especially the accounts of Ansal API, to find out the possible diversion of funds, and causes of inordinate delays.

"The show-cause notices have been issued to the developer following a report submitted by the auditor that had investigated 91 projects of Ansal API over the past three months for financial misappropriation,” the authority said.

"The auditor has found Ansal API projects are in breach of the real estate law. The realtor also diverted homebuyers’ money amounting over Rs 600 crore," the statement said.

The Lucknow projects that were audited include EWS/LIG-PKT 2-Sec K-SGC, Bliss Delight, Block 1,2,3 & 4, GH-2,Sec, Pocket-2, Sector-J, Sushant Golf City and Pocket 3 Sector A, Sushant Golf City.

"A large number of complaints were filed against these projects before us in respect of non-delivery of units/plots, failure to refund money advanced by buyers, violation of various approvals, etc. Some serious allegations of mismanagement, diversion of funds, etc., were also made by the complainants,” UP RERA Chairman Rajive Kumar said.

The “first-of-its-kind action by the RERA” has been taken under Section 35 along with Section 7 (2) for violation of Section 4, 7 and 11 of the Real Estate (Regulation and Development) Act, 2016.

It would give the developer 30 days to reply and deposit the amount, UP RERA Member Balwinder Kumar said, adding "if the developer fails to respond, we might revoke the project registration with the authority, impose penalties and other necessary restrictions".

With inputs from housing News