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The Department of Town and Country Planning (DTCP) has suspended the licenses of three affordable housing projects in Gurugram, after the developer, Ocean Seven Buildtech, failed to comply with their terms and conditions. The licenses were granted to Ocean Seven Buildtech in 2016, 2018, and 2019 to develop Expressway Towers in Sector 109, Golf Heights in Sector 69, and The Venetian in Sector 70, respectively. However, the developer has failed to deliver the projects to date, triggering protests from the allottees.
In the order, TL Satyaprakash, Director-General of the Town and Country Planning Department, said that the developer had made grave violations of Act No 8 of 1975 and rules thereof, and numerous complaints of the allottees against the developer for the delay of the project through different forums had been received. As a result, the licenses granted to Ocean Seven Buildtech are hereby suspended. The DTCP has asked officials to identify other assets of the developer while deliberating upon the modalities for the completion of the stalled projects.
According to a senior official of DTCP, the license for Expressway Towers expired in May 2021, and there are outstanding dues of INR 13.99 crore on account of external development charges (EDC). Sanjeev Mann, Senior Town Planner, said that sufficient time was given to the developer to share the schedule for the completion of the projects, but there was no clear response from them. Despite repeated directions to clear the outstanding dues and apply for the renewal of license, the developer has not acted.
On Friday, the homebuyers of Expressway Towers filed a police complaint against the developer and demanded the seizure of passports of the directors and OSB officials, who are allegedly involved in fraud. They have also met with the H-RERA member to expedite the proceedings against the developer. A spokesperson for OSB said that the order was passed against the company without giving them a chance of hearing. They will file an appeal against the order with the competent authority. The company has already applied for the renewal of the license and is committed to completing the projects.
The suspension of the licenses of the three affordable housing projects has come as a severe blow to Ocean Seven Buildtech, as it has already faced protests and complaints from homebuyers for the delay in completing the projects. The company has been accused of making grave violations of Act No 8 of 1975 and rules thereof, and numerous complaints of the allottees against the developer for the delay of the project through different forums have been received.
The suspension of the licenses has been made in the interest of the public as the projects were targeted towards the low and middle-income groups. The decision of the DTCP to suspend the licenses of the three affordable housing projects is expected to have far-reaching consequences for the real estate sector in the region. It is expected to send a strong message to other developers that they cannot take the allottees for granted and must complete the projects on time.
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