Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
The Enforcement Directorate (ED) has advised homebuyers and property investors to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payments for real estate transactions. The agency has also asked buyers to report builders who refuse to provide registration or project documents, demand cash, delay registered documents or fail to refund money. The advisory was issued in connection with the ED’s provisional attachment of assets worth INR 129.80 crore belonging to an Ahmedabad-based real estate company and its promoters in an alleged homebuyers’ fraud case. The agency cautioned buyers against relying on oral assurances from brokers, booking forms or notarised papers, and advised them to insist on formal agreements for sale or registered sale deeds.
The Enforcement Directorate (ED) has asked homebuyers to report builders to law enforcement agencies, RERA authorities and other competent bodies if they refuse to disclose project registration details, demand cash payments, delay registered documents or fail to refund money. The advisory was issued on Monday after the agency provisionally attached assets worth INR 129.80 crore belonging to an Ahmedabad-based real estate company and its promoters in an alleged homebuyers’ fraud case.
The agency advised buyers to independently verify a project’s RERA registration, statutory approvals, title documents, land records and encumbrance details before making any payment. Buyers have also been asked to establish whether the property is mortgaged or involved in any dispute. The ED cautioned against relying solely on oral assurances from property brokers, booking forms, notarised documents or other informal commitments.
According to the advisory, buyers should insist on a proper agreement for sale or sale deed before proceeding with a transaction. The agency said a builder’s refusal to share project documents, insistence on cash payments, delays in providing registered documents, failure to return money or attempts to transfer project land to third parties should be treated as matters warranting a complaint to the appropriate authorities.
The ED also identified unusually high returns, guaranteed buyback arrangements and unusually large discounts as warning signs that prospective buyers should scrutinise before committing funds. RERA, established under the Real Estate (Regulation and Development) Act, 2016, provides a regulatory framework intended to protect homebuyers and promote greater transparency in the real estate sector.
The advisory follows the agency’s action against Keshav Narayan Group and its linked persons, including Ronak Ravjibhai Sonani and Vipulbhai Gordhanbhai Gangani. The ED issued a provisional attachment order on August 14 under the Prevention of Money Laundering Act (PMLA), covering immovable properties valued at INR 129.80 crore.
The case originated from multiple FIRs and chargesheets filed by the Ahmedabad Police against the accused. The ED alleged that the accused targeted ordinary homebuyers, small investors, traders and middle-class families by presenting their real estate schemes as genuine projects. Flats and shops were allegedly offered at pre-launch prices with promised returns ranging from 54 per cent to 100 per cent, while the projects were marketed without mandatory approvals, including RERA registration.
The agency said the provisional attachment was intended to prevent further sale, transfer or concealment of the properties and safeguard the interests of affected homebuyers and investors. It further stated that it remains focused on tracing and restraining alleged proceeds of crime and protecting legitimate claimants. The ED said assets confiscated under the anti-money laundering law may subsequently be restored or restituted to homebuyers, subject to the applicable legal process.
Source - PTI
Advertisement
Facebook
Whatsapp
