3C promoters in trouble as criminal proceedings begin

Lotus Panache, which was launched in 2010 and comprised of 30 towers with 4,000 apartments was supposed to be delivered by 2012.

Published: 05th February 2019 09:00 AM  |   Last Updated: 05th February 2019 09:00 AM   |  A+A-

construction, building, architecture, civil engineering, Real Estate

For representational purposes

By Express News Service

Promoters of NCR-based real-estate firm 3C Developers are set to face even more trouble, with the National Consumer Disputes Redressal Commission (NCDRC) finally deciding to initiate criminal proceedings against them after the firm failed to pay compensation for delays in delivering projects to its buyers despite several reminders.

Once considered one of the poster boys of green buildings in India, 3C Developers had launched Lotus Panache and Lotus Boulevard residential units in Noida. While units in the projects sold like hot cakes, trouble began when the developer landed into a funding crisis.

Lotus Panache, which was launched in 2010 and comprised of 30 towers with 4,000 apartments was supposed to be delivered by 2012. However, only 1,000 apartments have been delivered till date.

Eventually, a case at the NCDRC was filed by the Lotus Panache Welfare Association claiming compensation for the delay in delivering the project.

During the proceedings, home buyers had agreed to a deal with the builders where the latter would deliver the project between 2017-2019 (tower-wise delivery). If delayed further, additional compensation at 14 per cent per annum on the amount deposited was to be paid by the builder.

As per the agreement, the directors of Three C Universal Builders issued post dated cheques of Rs 2.99 crore, but these were not honoured for want of sufficient funds. The buyers, through their counsel Sahil Sethi, also alleged that around Rs 12.05 crore is still due from the builder. The developer had also failed to maintain Rs 20 lakh in a dedicated development account for the project and had failed to deposit Rs 10 crore in the account.

Meanwhile, Granite Gate Properties was to provide an additional bank guarantee of around Rs 1.90 crore to the buyers’ association and had agreed to entrust properties worth around Rs 79.58 crore to a trustee mutually appointed by the parties. However, none of the terms and conditions set in the agreement had been met.

The NCDRC has now initiated criminal proceedings against 3C Builders, 3C Universal Developers and its three directors namely Vidur Bharadwaj, Nirmal Singh and Supreet Sing Suri for not abiding by the instructions by the NCDRC.

Failure to deliver homes

Lotus Panache was launched in 2010 and comprised of 30 towers with 4,000 apartments
All these apartments were to be delivered to homebuyers by 2012
However, as of now, only 1,000 apartments have been delivered to the developers' customers in the project

Deal agreed to in court

During the proceedings, home buyers had agreed to a deal with the builders where the latter would deliver the project between 2017-2019 (tower-wise delivery). If delayed further, additional compensation at 14 per cent per annum on the amount deposited was to be paid by the builder.

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