New Delhi, Aug 17 (PTI) The Enforcement Directorate (ED) on Monday asked homebuyers to report a builder to law enforcement agencies and other competent bodies if the real estate company and its promoters refuse to share their RERA registration, fail to refund money or insist on cash payment during a property transaction.
It also advised homebuyers to “verify” the title documents of the immovable asset they intend to purchase and not rely on “oral promises” made by property brokers.
The federal agency issued this advice and caution in a statement while provisionally attaching assets worth Rs 129.80 crore belonging to an Ahmedabad-based realty company and its promoters in an alleged homebuyers fraud case.
“Homebuyers and investors are advised to verify RERA registration, statutory approvals, title documents, land records and encumbrance details before making payment. They should check whether the property is mortgaged or involved in any dispute,” the ED said.
Buyers should not rely only on oral promises, booking forms, notarised papers or assurances from brokers,” it said. The agency further asked the buyers to insist on a proper agreement for sale or sale deed.
“If a builder refuses to share documents, insists on cash, delays registered documents, fails to refund money or tries to transfer project land to third parties, the matter should be reported to law enforcement authorities, RERA and other competent authorities,” it said.
The ED said that promises of very high returns, guaranteed buyback or unusual discounts should be treated as “warning signs”.
RERA stands for Real Estate Regulatory Authority, which came into existence as part of the Real Estate (Regulation and Development) Act, 2016. It aims to protect homebuyers and also boost real estate investments.
The agency said it remains “committed” to tracing and restraining proceeds of crime and “protecting” the interests of victims (homebuyers) and legitimate claimants by confiscating the assets of the accused builders under the anti-money laundering law and subsequently restoring or restituting them to the homebuyers.
The attachment order against the Ahmedabad builder was issued on August 14 under the Prevention of Money Laundering Act (PMLA) in the case of Keshav Narayan Group and its linked persons named Ronak Ravjibhai Sonani, Vipulbhai Gordhanbhai Gangani and others.
The ED case stems from multiple FIRs and chargesheets filed by the Ahmedabad Police against the accused. It alleged that the accused “cheated” ordinary homebuyers, small investors, traders and middle-class families by projecting their real estate schemes as genuine projects.
The accused offered flats and shops at attractive pre-launch prices and ” promised” assured returns ranging from 54 to 100 per cent, according to the ED. However, the agency said the projects were marketed without mandatory approvals such as RERA registration.
“The attachment has been made to stop further sale, transfer or concealment of these properties.
“It will help protect the interests of defrauded homebuyers and investors,” the agency said. PTI NES KSI KSI
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