500cr scam: Emaar MGF dupes 560 buyers


By: Manish Tiwari, Daily Post, Chandigarh

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyIt may well go down as one of the biggest real estate scams in the country. The controversial Commonwealth Games village builder, Emaar MGF, has fraudulently sold off over 560 plots it did not own to unsuspecting buyers in Mohali (Punjab). The land, sold from 2006 on, is still owned by local farmers. The market value of these plots is estimated at Rs.500 crore.

Located in three Greater Mohali sectors — 105, 108 and 109 — just 4 km from the international cricket stadium in Mohali, these plots have been sold to gullible buyers, allegedly in connivance with the Punjab Housing Department officials and the police.

The market value for a 300 sq yard plot is around Rs.75 lakh, while a 500 sq yard plot costs up to Rs.1.5 crore.

Interestingly, the scam has been in the knowledge of some top officials close to both the Capt. Amarinder Singh Government as well as the Badal regime, but no action was taken against the company purportedly due to the developer’s proximity with political leaders.

Although about 90 per cent of the buyers of these plots have paid full amount to Emaar MGF during the past six years, they have yet not been given possession since the title of the land does not exist in the name of the company, revealed documents in possession of Daily Post.

A 7-point questionnaire was mailed to the company’s local representative, Ragini Gulati, on October 27, 2011. Despite repeated calls, no response was received till date.

Punjab’s Chief Town Planner (CTP) Kuldeep Singh Dhaliwal, when contacted, said the company played mischief in the beginning by not informing the government that large chunks of land shown in the township plan did not belong to it. He said what the company did was illegal and immoral. “No company can sell plots if it does not own it. When it came to my notice, I took a stand against the company on file,” the CTP added.

Suspecting foul play and fraud, some buyers have been running from pillar to post to secure the title, and making frantic calls to Emaar MGF to inquire about the status of the land. Little do they know that they may still not be able to easily get possession of the land they had paid for.

While some buyers have already approached courts, others have filed criminal complaints with the police. But no action has yet been initiated in many cases, apparently due to the influence of the company.

Emaar MGF, which had launched projects in Mohali with much fanfare during the Capt. Amarinder Singh regime, has been in the thick of major controversies after the 2010 CWG scam came to light. The company is facing investigations in connection with the scam for doing a shoddy job in the construction of the Commonwealth Games village in New Delhi. The CBI has, meanwhile, arrested some of the company officials and is now questioning its managing director, Shravan Gupta, in connection with a land scam in Andhra Pradesh.

Investigations made by Daily Post revealed that in the past six years, Emaar MGF allotted over 1,670 plots in Sectors 105, 108 and 109 and took payments from the buyers. The company, however, failed to give possession to buyers of over 560 plots. The land already sold either belongs to the farmers or is ‘revenue rasta’ that is yet to be acquired for the company.

Sources in the Greater Mohali Area Development Authority (GMADA) said Emaar MGF had land for selling more than 1,000 plots in the three sectors but it sold over 1,670 plots. Hence, it is not able to give possession to over 560 buyers. Neither has it shown the will to buy the land on which these plots are located. “Some of the apartments and villas that are currently being sold to buyers do not have land underneath!” sources added.

One buyer, Sandeep Batra, made 100 per cent payment (Rs.52.2 lakh) to Emaar MGF for plot number 124, Central Greens, in Sector 105, Mohali, but kept running from pillar to post to get the possession of the land and had even threatened to take legal action against Emaar MGF, sources said.

Daily Post investigations revealed that the plot that Batra had bought did not belong to Emaar MGF.

In 2006, when Batra bought the plot, the company had reportedly committed to him that he would be handed over the plot in 2008 or latest by mid-2009, it is learnt.

Batra was not the only victim. Emaar MGF has prepared a list of such buyers, including journalists and who’s who of north India, who may not get possession of their plots soon. Those who have been allotted such plots have been put in an “Exception List”.

Courtesy: http://dailypostindia.com/


5 Comments

  1. Harjinder S Kang on

    Dear Sir,
    I too am having issues with Emaar MGF. I booked a plot in Sector 105 in July 2011. I informed them at the time that I must have possession July 2011 and paid a sum of Rs 21 lacs. At the time I told them I must have possession by July 2013 due to Capital Gains tax concerns. However, it was not until March 2012 that I got the agreement signed even though I chased the company. Again in March 2012 before signing the agreement, I informed them that I must have possession by July 2013 and was assured that this will be done.
    Then in Sept 2012, the company sent out a letter saying that a Force Majuere situation had arisen referring to shortage of building material and attached press cuttings from March 2012! I immediately wrote to them and said that I could not accept this as any cause of delay. For the next six months I have been chasing them to give me assurances that there will be no delay or to offer alternatives. However, the alternatives they have offered have been more expensive then the original booking. Then recently they sent me an email saying that Force Majeure does not apply to my plot! Nevertheless, they still are not committing to deliver on time.

    Regards

    Harjinder Singh Kang

    • bhushan kumar on

      Hi, I am also having problems in getting the allotment of 300 sq yd plot allotted by Emaar MGF, could you please suggest if you were allotted the plot or refunded by the company?

      • Hey, I am planning to buy plot at sector 108 Mohali from a party on resale who has bought it from Emar MGF. Plot is yet to be registered in that party’s name. Kindly guide whether I should go for it or not.

  2. Yash Gupta, Advocate on

    Omg! this is so serious and I am really disheartened to see that Emaar has been illegally selling the land to the innocent buyers with the intent to defraud them.

    Indeed, there are certain serious issues with the Emaar – Mohali Hills Project, I am one of the resident in Sector 109, Emaar, Mohali Hills, Mohali and find that the staff appointed by the Emaar India is a gang of fraudsters, as they commit something and do something else.

    For Instance, they have committed have a Club House in Sector 109 and we have been charged for the same in the year 2017 and it is not me alone there are many others and now they say they would not construct any Club House in Sector 109 rather they are constructing the Community Centres, we are surely planning to take them to the Court of Law for such fraud but this is a serious issue.

    They have poor electricity system, there is always a problem with the electricity supply as there are very frequent electricity cuts which are due to Emaar’s poor wiring and not due to PSPCL.

    They committed but they do not have treatment plan for the drinking water.

    Gold Course which has been shown and projected to the customers while selling and the permissions so taken and the environmental clearances taken for the Golf Course, the same land does not belong to them as the GMADA has put up a notice on the said land.

    Our corrupt government and officials support them and that is why the innocent people are suffering here.