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Haryana RERA's Gurugram division has issued a show-cause notice to Ramprastha Promoters & Developers Pvt Ltd, warning of possible civil imprisonment over failure to comply with refund orders worth nearly INR 3 crore. Despite directives to return funds to homebuyers and disclose attachable assets, the developer has not acted. This follows the Enforcement Directorate's recent arrest of the company's directors in a money laundering case involving INR 1,100 crore collected for stalled projects like Edge, Skyz, Rise, and Ramprastha City. ED findings include diverted funds, seized luxury assets, and attached property worth over INR 681 crore. HRERA has scheduled the next hearing for early next week.
Haryana Real Estate Regulatory Authority (HRera), Gurugram bench, has issued a show-cause notice to the promoters of Ramprastha Promoters & Developers Pvt Ltd, cautioning them that they may face civil imprisonment due to non-compliance with refund orders passed in earlier years. The Authority questioned why the promoters should not be detained for failing to implement its previous rulings. Advertisement
The order in question directed refunds amounting to approximately INR 3 crore to be paid to homebuyers who had not received possession of their homes. Furthermore, the developers had been asked to file affidavits listing assets that could be attached to recover dues, but no such disclosure was made.
This regulatory action was taken shortly after the Enforcement Directorate arrested directors of the company in connection with an ongoing investigation into money laundering. Officials alleged that over INR 1,100 crore had been collected from more than 2,000 homebuyers between 2008 and 2011 for multiple projects in Gurugram, including Edge, Skyz, Rise, and Ramprastha City, without delivering possession to the buyers even after more than a decade.
The ED investigation reportedly found that approximately INR 140 crore was diverted to other group entities rather than being used for project completion. During the probe, unaccounted cash, luxury vehicles, and several bank accounts were seized, and assets worth more than INR 681 crore were provisionally attached.
HRera has scheduled the next hearing for early next week, giving the promoters limited time to present their compliance or face further legal action.
Their repeated non-compliance with refund and disclosure orders has now drawn the threat of civil detention. The unfolding situation underlines the growing regulatory resolve to hold errant developers accountable and to safeguard the interests of homebuyers, many of whom continue to await delivery of their long-delayed investments.
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