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HC tightens noose around builders
Tribune News Service
Chandigarh, May 3
The Punjab and Haryana High Court wants to know the number of cases where builders have collected huge sums, but have failed to stand by their commitment of allotting dwelling units within the specified time.
Justice Ranjit Singh has also directed a survey of all builders in Dharuhera in Rewari district to find out how they have violated the terms of agreement by accepting money, but not allotting dwelling units within the specified time.
The directions came on a petition filed by Delhi-based M2K Infrastructure Private Limited. The builders have a "working site" at Dharuhera.
Justice Ranjit Singh observed: The petitioner is a builder and has come to challenge the order passed by a lok adalat, whereby it has been directed to refund Rs 5 lakh to Sunil Yadav.
"Once the petitioner-builder was not able to fulfil the commitment of delivery of the dwelling unit, there is no case on merit for interfering with the directions issued by the lok adalat, except that it was, in my view, misconceived in not allowing the penalty and the interest on the amount, which has been directed to be refunded.
"Further, it may need to be inquired as to in how many cases the builders have collected huge sums, but have failed to stand by the commitment.
"The builders, thus, have been able to misuse huge funds by not allotting the dwelling units".
Issuing a notice to the state of Haryana for May 30, Justice Ranjit Singh also asked the state counsel "to find out and ascertain this aspect".
Justice Ranjit Singh concluded: "The state would also carry out a survey of all the builders in Dharuhera and submit before the court as to how in many cases the builders have accepted money and are yet to allot dwelling units or plots as promised in the terms of agreement".
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