RERA ordered 60 days of Civil Imprisonment for a Builder

Ramesh Agrawal (LL.B. & CA)

Real Estate Regulatory Authority (RERA), Gurgaon has given 60 Days civil imprisonment to the owner / Director of a Builder Company namely International Land Developers (ILD) in a contempt case.

Adjudicating Officer (AO) of RERA, Gurgaon ordered to Superintendent of District Jail, Bhondsi stating “You are hereby authorised to detain Salman Akbar in civil imprisonment for 60 days… you are directed to produce him on 60th day of his detention before the adjudicating officer.”

An arrest warrant was issued earlier on 31st October by the court to produce Salman Akbar on or before December 21, 2022. As per the officials the matter is of January 2013, when the complainant booked a unit in ILD Spire Greens, Sector 37 Gurgaon & an agreement was execute. Builder Company ( ILD ) was supposed to give possession in July 2016, but they failed.

In November 2018, allottee filed a complaint in RERA court alleging delay by the promoter in giving possession. Authority has passed an order in favour of the aggrieved allottee, asking the ILD to pay the interest on the amount paid by the complainant for every month of delay. Interest was supposed to be allowed from July 2016 to the date of actual possession. ILD failed to comply with the order of RERA.

As per RERA Court “The directors of the company were then asked to file an affidavit stating the particular of its assets to satisfy the decree, but they failed to respond leading to intentional disobedience of the orders of the adjudicating officer.”

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