Homebuyers of the ATS Marigold project in Sector 89A, Gurugram, await possession of their flats as ATS Infrastructure Ltd. faces an investigation for fund diversion and missed pre-EMI payments. Sanctioned in 2013, the project saw buyers approaching the National Consumer Disputes Redressal Commission (NCDRC) and Economic Offences Wing (EOW) in 2021, seeking refunds and interest. Allegations include collecting funds without licenses and financial misappropriation. Despite some towers being completed, many buyers remain without their homes, continuing to pay EMIs. ATS attributes delays to external factors, stressing that project funds are monitored under RERA regulations and the SWAMIH Investment Fund.
Homebuyers of the ATS Marigold project in Sector 89A, Gurugram have been left in a difficult situation as they wait for possession of their flats. The developer, ATS Infrastructure Ltd., is currently under investigation for allegedly diverting funds and failing to make pre-EMI payments. This investigation has cast a shadow over the project, which, originally sanctioned in 2013 to three developers, was later transferred to ATS.
In 2021, several homebuyers took action by approaching the National Consumer Disputes Redressal Commission (NCDRC) and the Economic Offences Wing (EOW), seeking refunds and interest on the payments they made. Out of the 24 initial complainants, only four have continued their case at the NCDRC, while others have sought resolutions through the Real Estate Regulatory Authority (RERA). Some complainants who initially pursued their claims with the NCDRC have shifted to RERA after receiving favorable rulings.
The allegations against ATS include collecting funds from homebuyers before obtaining the necessary licenses. Victims argue that the funds may have been misappropriated, creating possible financial misconduct. The EOW has invoked IPC Section 409, which addresses criminal breach of trust, as part of its investigation. The next hearing in this case is scheduled for September.
Homebuyers expressed their frustrations, explaining that they have been paying Equated Monthly Installments (EMIs) for several years without receiving possession of their properties. Sudhanshu Kanungo, who booked a flat in 2013, shared that he paid INR 1.1 crore, expecting to move in by 2018. Similarly, Janardhan Nair, who purchased a flat in 2018 under a subvention scheme, reported that he has been paying INR 50,000 monthly EMIs for four years, despite delays in possession. Nair's expected possession date was September 2019, yet he only received an occupancy certificate in June 2023. He has raised concerns about additional demands for payment while the developer has ignored the penalties for delayed possession.
While some towers in the project have been completed and 167 buyers have received possession, others remain unfinished. Homebuyers continue to demand the return of their investment along with interest. In response to the ongoing investigation and the dissatisfaction among homebuyers, ATS representatives stated that delays were primarily caused by external factors, including the construction of the Dwarka Expressway, pandemic restrictions, and environmental regulations restricting construction activities in the National Capital Region (NCR).
ATS maintains that the project is funded by the SWAMIH Investment Fund, which conducted thorough due diligence before financing the development. The developer stressed that all consumer payments are monitored under RERA regulations, claiming that any allegations of financial mismanagement are baseless. The monitoring by the SWAMIH Investment Fund aims to ensure that the project's funds are used appropriately, mitigating concerns about potential misappropriation.
As the investigation continues and homebuyers remain without their promised homes, the situation serves as a cautionary tale for potential investors in the real estate market. The unresolved issues associated with the ATS Marigold project highlight the importance of due diligence and the need for transparency from developers in the industry. The commitment to consumer rights and protections is crucial in safeguarding homebuyers against potential financial losses and ensuring timely completions of projects.
As this case unfolds, affected homebuyers are left to navigate an uncertain future, hoping for resolutions that would allow them to finally step into their new homes.
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