The Supreme Court of India has ordered a CBI investigation into alleged irregularities in major real estate developer DLF’s Primus Garden City project in Gurugram. The issue concerns possession and irregularities in the amenities offered by the developer.
On February 25, a bench of Justices Ahsanuddin Amanullah and R Mahadevan passed the order citing a “huge mismatch” between legal requirements and ground realities, which included representations made to buyers that might not have resulted in reality.
The apex court remarked that the case might be “just the tip of the proverbial iceberg” and not a one-off incident. “We are more concerned because if such instances occur in the organised real estate sector, one can well imagine the plight of ordinary consumers”, the Supreme Court noted.
What is the matter?
According to an Indian Express report, real estate developer DLF launched a premium residential project in May 2012, offering amenities such as two 24-metre access roads, pools, tennis courts, and banquet facilities. In August- October 2012, homebuyers booked the flats and paid about Rs 1.16 crore, about 95 per cent of the price, which was partly financed through Indiabulls Housing Finance. As per the agreement, the possession period was 42 months, ending on February 28 2016.
The report added that in October 2016, DLF issued a partial occupation certificate despite the lack of water and electricity and incomplete construction.
The appellants raised objections in 2017 regarding incomplete infrastructure, which the District Town Planner confirmed, but did not take any corrective action. The homebuyers approached the National Consumer Disputes Redressal Commission (NCDRC) in June 2017. Later in 2023, NCDRC found deficiencies in services and unfair practices by the developer.
Citing insufficient relief from the NCDRC, the homebuyers approached the Supreme Court.
What did SC say?
The Supreme Court has now directed the Central Bureau of Investigation to present its findings and a progress report in the matter on record by April 25, with Additional Solicitor General S V Raju to assist the court. The matter is listed for the next hearing on April 28.
As per the Indian Express report, a DLF representative said that the company has acted in full compliance with applicable laws and regulatory requirements and will extend complete cooperation to the authority in the conduct of the inquiry.