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SC flags serious lapses in PMAY EWS housing project in Gurgaon

#Law & Policy#Residential#India#Haryana#Gurugram
Gurugram News Desk | Last Updated : 26th Jan, 2026
Synopsis

The Supreme Court has asked the Haryana government and developer Mahira Buildwell for detailed explanations following allegations of fraud in an Economically Weaker Sections (EWS) housing project in Gurgaon under the Pradhan Mantri Awas Yojana (Urban). Homebuyers claim the developer used forged bank guarantees, fake signatures, and improperly obtained licences while completing only a small fraction of the construction. Authorities, including Haryana RERA, banks, and the town planning department, are also under scrutiny for inaction. The court's review could impact regulatory oversight and homebuyer protection in affordable housing projects.

The Supreme Court has directed the Haryana government and developer Mahira Buildwell (formerly Czar Buildwell) to respond to serious allegations involving an EWS housing project in Gurgaon under the Pradhan Mantri Awas Yojana (Urban). A homebuyers association representing Economically Weaker Sections claims the developer submitted forged bank guarantees, used fake signatures, and secured licences through improper means. Despite collecting substantial payments from buyers, only 5-7% of construction has been completed.


The petitioners have highlighted alleged lapses by regulatory and enforcement authorities, including Haryana RERA, the Centre, Haryana's director of town and country planning, and banks such as Axis Bank and Canara Bank. They contend these bodies failed to act in time, causing financial losses and stress to the homebuyers.

The Supreme Court bench, headed by Chief Justice of India Surya Kant, is examining these claims along with similar cases involving subvention schemes and developer-bank relationships. Earlier vigilance inquiries into EWS flat allotments in Haryana had revealed systemic issues in project oversight and allocation, showing a pattern of regulatory gaps that may have allowed such practices.

The court's notice to the state government, developer, RERA, and other enforcement agencies signals a broader review of accountability in affordable housing projects. The action could influence how future EWS housing schemes are monitored, implemented, and regulated to ensure timely delivery and safeguard buyers investments.

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