2 top Mohali builders default, lose allotment
Gaurav Kanthwal
Mohali, April 13
Two major real estate companies developing an upscale residential and a commercial project here have defaulted on payments to the Greater Mohali Area Development Authority (GMADA) for site allotment, thereby putting the future of hundreds of flat owners and commercial space buyers in jeopardy.
“Around Rs 80 crore is outstanding against the owner of Beverly Golf Avenue in Sector 65 and Rs 103 crore against owners of World Trade Center Chandigarh in Aerocity. This includes penal interest for defaulting on payments to GMADA,” said an official.
GMADA’s role questioned
- Questions are being raised over why timely information of default was not provided to public by GMADA officials
- Property dealers & buyers accuse it of letting financially unsound entities buy land for a song and then eventually default after making huge profits
- This comes at a time when several big developers such as GBP Group and Sunny Enclave are facing charges of fraud
Do not buy these properties: Advisory
- In 2015, MB Infra Build Pvt Ltd bought 7.123 acres in Sector 65 in auction for Rs 133.19 crore. It deposited 20% amount of bid price & defaulted on payment
- Same year, WTC Noida, WTC Chandigarh and Erika Fracon India bought eight acres on Aerocity road for Rs 131.33 crore. It also defaulted on payment
- GMADA has advised public not to purchase any property in both these projects, but officials say defaulting firms can go in for an appeal
Firms owe Rs 183 cr
- Owner of Beverly Golf Avenue, Sec 65. Rs 80 cr
- Owners of World Trade Center Chd, Aerocity. Rs 103 cr
The development has created anxiety among existing buyers and property dealers who have slammed GMADA for leaving them in the lurch. It comes at a time when several big developers, such as GBP Group and Sunny Enclave, have been booked for defrauding buyers. Mohali Property Consultants Association president Harpreet Dadwal said: “This is a setback to real estate buyers and dealers.
It creates a doubt in the mind of buyers. In 2015, the land was auctioned at a reasonable amount. There was a boom in the sector for some time as well. In a way, GMADA is encouraging financially unsound entities to buy land by paying a fraction of the amount and sell it on huge margins, and then default.”
The authority has advised public not to purchase any property in both these projects, but officials say the defaulting firms can go in for an appeal.
In 2015, M/s MB Infra Build Pvt Ltd had purchased a site measuring 7.123 acres for group housing in auction at Rs 133.19 crore. The company constructed flats/apartments on the site in Sector 65 and named the project “Beverly Golf Avenue” offering a lush green view of the nearby golf range to flat owners. The company deposited 20% amount of the bidding price after the auction. However, it failed to deposit the balance amount as per the schedule, said the official.
The same year, M/s WTC Noida Development Company Pvt Ltd, M/s WTC Chandigarh Development Company Pvt Ltd and M/s Erika Fracon India Pvt Ltd purchased eight acres of commercial land near the airport chowk on the Aerocity road through auction at Rs 131.33 crore. The company, however, failed to deposit the due amount as per the terms and conditions of the allotment letter. GMADA has now cancelled the allotment made to the companies. Questions are also being raised over why timely information of default was not made public by GMADA officials.
“This is a flawed policy of GMADA for which buyers will have to suffer. For one defaulting firm, hundreds of buyers have been shortchanged,” said Shalinder Anand, former president, Mohali Property Consultants Association.
