HARYANA REAL ESTATE REGULATORY AUTHORITY GURUGRAM eRe yet fafrarra wife, Leary New PWD Rest House, Civil Lines, Gurugram, Haryana 72 verde, eam efeenOT From Secretary, Subject : M/s Czar Buildwell Pvt. Ltd., Haryana Real Estate Regulatory 311-A, Global Foyer, Golf Course Road Authority, New PWD Rest House, Sector 43, Gurugram, Haryana Civil Lines, Gurugram Ph. No, 0124-4013094 Mobile No. 8448202000 Email:gurugaon@mahiragroup.com Show cause notice to initiate penal proceedings for violations of various provisions of the Real Estate (Regulation and Development) Act, 2016 and specifically to the section 4(2)(I)(D) of the Act and the direction of the authority “the Haryana Real Estate Regulatory Authority, Gurugram Bank Accounts for the Registered Projects Directions, 2019” in pursuance of the proceedings of the Authority dated 22.8.2022. You are directed to follow the order issued vide letter dated 22,8,2022 issued by this Authority. Copy enclosed for ready reference. in Haryana Real Estate Regulatory Authority pe Encl : as above. Email : hareragurugramZagmal.com, reragurugram@gmail.com, Webalte : www harera.in An Authority constituted under section 20 the Real Estate (Regulation and Development) Act, 2016 {Act No. 16 af 2016 Passed by the Parliament year APs he Frey ofa, 201 ce ure ane or i ware ‘ura haa ara fe 20 16m ae TA 6i} HARERA HARYANA REAL ESTATE REGULATORY AUTHORITY GURUGRAM al Rear y-tiver Farrar oftrareo ae [From See, | To | Secretary M/s Czar Buildwell Pvt. Ltd Haryana Real Estate Regulatory 311-A, Global Foyer, Golf Course Road Authority, New PWD Rest House, Civil | Sector-43, Gurugram, Haryana Lines, Gurugram. Ph, 0124-4013094 | Mobil : 8448202000 os A Email: gurgaon@mahiragroup.com Sub: Show cause notice to initiate penal proceedings for violations of variou provisions of the Real Estate (Regulation and Development) Act, 2016 and specifically to the section 4(2)(1)(D) of the Act and the direction of authority “the Haryana Real Estate Regulatory Authority, Gurugram Bank Accounts for the Registered Projects Directions, 2019” in pursuance of the proceedings of the Authority dated 22.08,2022 1, With reference to the subject cited above, itis stated that the real estate proj detailed below was registered with the Haryana Real Estate Regulatory Authorit Gurugram, S.No. | Particulars __| Details act 1. | Registration no. GGM/504/236/2021/72 datec 25,10,2021 = 2. Name of promoter M/s Czar Buildwell Pvt. Ltd. 3._ | Name of project Mahira Home-104 | i zs 4,_| Area of project 10.44375 acres 5. __| Nature of project Affordable Group Housing Colony 6. | Location of project Sector 104, Gurugra 2. Your attention is invited to the declaration submitted by you in the form ot an affidavit at the time of registration of the above-mentioned project in co with section 4(2)(I)(D) of the Real Estate (Regulation and Development) Act, 2016 wherein you had undertaken to withdraw fund in compliance of section 4(2)(I)(D of the Real Estate (Regulation and Development) Act, 2016, ‘mall: hareragurugram@gnall com, reragurugram@grinil.com, Website : win hare An Pena Sy tara eg under peeion 20 the Real Estate (Regulation asd Development) Ac Tt No bof 016 Fated ne alae gsi trae she Fey ae, au au cn nb wore fren of wae Ea afer ove OO eee | SRAq HARERA HARYANA REAL ESTATE REGULATORY AUTHORITY GURUGRAM >, GURUGRAM aftaron yatrey faPrarrer wero Teo New PWO Rest House, Clvl Lines, Gurugram, Haryana ant myf, farm me, te engay pema, fen Section 4(2)(1)(D) of the Real Estate (Regulation and Development) Act, 2016 states the following provision: (i) That Seventy percent of the amounts realized for the real estate project from the allottees, from time to time, have been deposited in a separate account maintained in a Scheduled Bank to cover the cost of construction and the proportionate land cost and been used for that purpose: (ii) That the promoter hds withdrawn the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project: (iti) That the amounts from the separate account have been withdrawn by the promoter after it is certified by an Engineer, an Architect, and a Chartered Accountant in practice that the withdrawal is in proportion to the percentage of completion of the project On the apprehension that the promoter may have committed violations of the provisions of the Real Estate (Regulation and Development) Act, 2016 and rules and regulations made thereunder, the authority took suo-motu cognizance of the {issue relating to the affairs of the promoter of the project and initiate inquiry under section 35 of the Act ibid. 4 A forensic audit was conducted by M/s, GRAND MARK & ASSOCIATES chartered accountants on the basis of information and documents submitted by the promoter at the time of application for registration of the project and subsequent thereof, to ascertain whether the compliance of the various provisions of the Real Estate (Regulation and Development) Act, 2016 and the rules, regulations, and directions made thereunder has been made by the promoter or not. On perusal of the report submitted by the forensic auditor, several instances of questionable transactions were observed. The auditor had submitted in its report that in the project Mahira Home-104, several withdrawals are made in breach of RERA provisions and a few of the transactions are questionable and the same are specified in the subsequent para. It appears that a withdrawal from the RERA account was made in violation of the provisions of RERA by the promoter M/s Czar Buildwell Private Limited. The following specific violations were observed: Email : hareraguruugram@gmail com, reragarugram@gmail.com, Webaite : www harera.in ‘An Authority constituted unvler section 20 the Real Estate (Regulntian and Development) Act, 2016 ‘Act No. 16 of 2016 Passed by the Parliament gainer faPrans at Rrra) ey, zou ere anther nS wore saa arg ae) Ra zonsor fran st 16 a® HARERA HARYANA REAL ESTATE REGULATORY AUTHORITY ——$———— GURUGRAM GURUGRAM ‘ és Brann +t faPame vile yom New PWD Rest House, Civil Lines, Gurugram, Haryana a) Uh saqdt Pow 1g, fee aie Gf i. As per the report of field visit by the engineers of the authority, the physi progress of the project was only 2% whereas the promoter had amount of Rs, 59,70,56,000/- from the separate RERA account, The r construction cost of the project was Rs, 3,09,89,29,750/- the withdrawn amount of Rs. 59,70,56,000 from the separate RERA Account not in proportion to the percentage of completion of the project. As pe clause (D) of clause (1) of sub-section (2) of section 4 seventy percent of ¢ amounts realized for the real estate project from the allottees, from time time, has to be deposited in a separate account maintained in a schedule’ to cover the cost of construction and the proportionate land cost and has be: used only for that purpose. ii, As per 1st & 2nd proviso to section 4(2)(I)(D) of the Act provides th withdrawal from the separate account shall have to be in proportion to percentage of completion of the project after itis certified by an engineer. an architect, and a chartered accountant that the withdr the percentage of completion of the project. However, the promoter failed to submit any requisite certificates and the withdrawals from the separate wal is in proportion { account were made without any certification by an engineer, an architect and a chartered accountant that the withdrawal is in proportion to the percent of completion of the project. iii, The amount of Rs.59,70,56,000/- laying in RERA 70% account has transferred into the 30% free account based on the written request made by the promoter from time to time without any requisite certificate, Therefore the 30% Free Account with the transfer of 70% RERA account, has become free current account, with 100% funds collected from the allottees, & were withdrawn by the developer. iv. Various loans and advances of Rs. 37,74,35,891.90/- were dis related parties from the amount transferred from RERA account to free ursed t account. v. Advances of Rs, 20,56,75,299.00/- was made without any agreement etc trom the amount transferred from RERA account to free account. 8 In exercise of power under section 38 of the Real Estate (Regulation and Development) Act, 2016 the authority has decided to issue a show-cause notice as to why penal proceedings under section 60 shall not be initiated and penalty be ‘Ema : hareraguragram@gmail.com, reragurgramgmail com, Website : www ‘an Authoriy constituted under section 20 the Real Estate (Regulation and Development) Act, 2010 Tact No. 16.0f 2016 Passed by the Parliament agaicar (Prem ae Peers). fram cove et 20 crab wre fren 8) are TR fy o1ee) afFRCH eT aP HARERA HARYANA REAL ESTATE REGULATORY AUTHORITY Cu GURUGRAM pec pfraron yaioer Farrar often eo yea cr ie ee imposed which may extend up to 5% of the estimated cost of the real estate project as determined by the authority. The provisions of section 60 of the Real Estate (Regulation and Development) Act, 2016 are quoted here below for ready reference: “60. Penalty for contravention of section 4.- Ifany promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project, as determined by the Authority’. 9, Youare hereby directed to show cause before 22" September, 2022 as to why penal proceedings shall not be initiated against you for non-compliance with the provision of section 4(2)(1)(D) of the Act. 10, ~ Ifyou have to say anything in this regard, you may appear before the authority on 27!» September, 2022 at 11.00 am in the office of HARERA, Gurugram along with the written reply at the conference room, New PWD Rest House, Civil Lines, Gurugram, Haryana. In case you fail to appear before the authority on the above- given date and time, it will be presumed that you have nothing to say in this regard 11, You may either appear in person or authorize one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any officer to present your case before the regulatory authority as per provisions under section 56 of the Real Estate (Regulation and Development) Act, 2016. Issued under directions and approval of the authority: Date: 22.08.2022 oe Place: Gurugram for: Haryana Real Estate Regulatory Authority, Gurugram 7 mall; hareragurugram@gmall com, reragurugsam(gmail com, Webalte : www harera.in An Panay Conststed under section 20 tne Real Estate Regulation and Development) Act, 2016 Tet No. 16 of 2016 Faved hy te Farlament gare eras he Pry ian aon rr ae ore fe ere urea ah wag are mites zoey afer ear 16 4