corporate law

RERA Issues Arrest Warrant for Ansal Housing Directors Over Refund Compliance

Arrest Warrant Issued by RERA Against Directors of Ansal Housing Limited

The Real Estate Regulatory Authority (RERA) has ordered the issuance of an arrest warrant against the directors of Ansal Housing Limited due to their failure to comply with a previous directive to refund homebuyers.

Details of the Case

RERA has mandated that the directors of Ansal Housing pay a total of ₹5 crores, along with interest at the rate of 9.3%, to Mr. Rajeev Sharma and four other complainants. These individuals had raised concerns about their investments in residential units.

  • Background: Mr. Sharma and the other complainants purchased flats in the Ansal Heights project, located in Sector 86, which was launched in 2010. The project, consisting of 750 units, was initially expected to be completed by 2014.
  • Compliance Issues: Despite the previous order to provide a refund, Ansal Housing has neither issued the refunds nor filed an appeal against RERA's instructions, even after multiple reminders.

Actions Taken by RERA

In response to the non-compliance, RERA has summoned the Manager of Ansal Housing to address the situation. The authority previously attempted to attach the developer's bank account; however, it was reported that the account in question contained no balance. Consequently, the developer was instructed to disclose all details regarding their assets.

Official Statement

Regarding the latest developments, a representative from Ansal Housing has indicated that the company is actively engaging with the complainants to seek a resolution to the ongoing issue.

Conclusion

The issuance of an arrest warrant underscores RERA's commitment to protecting the rights of homebuyers and ensuring compliance with its directives. It remains to be seen how Ansal Housing will address these legal challenges and fulfill its obligations to the affected buyers.