real estate sector

The dream of buying one's own house is usually the dream of every person who leaves his/her village and enters the city of Delhi and Mumbai with multi-storey buildings. Since, the rent rate in the cities is increasing so much that the thought comes in the mind of the working person that if I pay the EMI of the rent I am paying, then I will have a house of my own, but this is not so easy because even after having the money, people get trapped in the trap of builders and their dreams get ruined. Recently, ED has cracked down on Jaypee Infratech Limited, a big company in the infrastructure sector. ED alleges that Jaypee Infratech Limited invested the money taken from home buyers in its real estate projects in other projects and misused them. The money of many investors is stuck in this fraud and they are still facing losses.

In the last 20 years, not only JP, there are many companies in Delhi-NCR whose projects are still pending. The government has definitely taken some steps to solve the problems of the people. But people are not getting complete solution from it. Let us understand when the problems of the common people will be solved and what steps have been taken by the government for this. What are their challenges and also which companies' projects are currently pending in Delhi-NCR?

incomplete projects

In the last two decades, the real estate sector of Delhi-NCR has been in the news again and again, sometimes for the housing boom and sometimes for builder scams. Since 2005, hundreds of housing projects are lying incomplete in Noida, Greater Noida and Gurugram. According to the report of Moneycontrol, according to expert estimates, 4.1-5.1 lakh units and investments worth Rs 4 trillion, approximately Rs 4 lakh crore, are stuck. Builders from Jaypee Infra to Supertech have been accused of embezzling people's money.

1. Supertech Project- One of the most talked about cases of Delhi-NCR is that of Supertech Limited in projects like Emerald Court, Ecovillage and Hues. During 2013-15, thousands of people booked houses under EMI subvention schemes. The builder diverted the funds and the projects remained incomplete. Till now only about 30% buyers have got the possession, the rest are under investigation by the court and CBI. Supreme Court has asked the banks to stop the EMI recovery for the time being. Total estimated value It is more than Rs 10,000 crore.
2. Jaypee Infratech- The dream of projects like Wish Town, Kove and Kassia, which started in the year 2007, is still incomplete. More than 20,000 flat buyers are still waiting. After allegations of land acquisition and fund misuse, this case went under IBC. According to the report, about 50% of the units are incomplete. In 2025, CBI had raided the company and related banks.
3. Amrapali Group- Between 2010 and 2018, Amrapali Group showed the dream of flats to thousands of buyers, but 42,000+ buyers were ultimately cheated. Builder's charges of fund diversion and fake approvals were proved. Supreme Court gave the responsibility to NBCC to complete the incomplete projects. So far, about 60% of the projects have been delivered and the rest is expected to be completed by 2026. According to the NBCC report, 75% Only the buyers have received refunds and houses.
4. 3C Company- In the Lotus 300 project of Noida Sector-107, 336 flats were booked between 2010-15. Later it was found that the builder diverted funds and built more flats than the sanctioned limit. The company is accused of a scam of more than Rs 500 crore. The directors were arrested in the year 2018 and now the resolution plan has been passed in NCLT but only 20% of the units have been delivered by 2025.
5. Vineshwara Group- Gurugram-based Vigneshwara Group launched several projects in 2014, including Apna Ghar. Its directors were arrested in 2015 on charges of fund misuse and selling the same unit to multiple people. Currently the case is pending in NCLT, about 40% of the units have been delivered and the rest are incomplete. In the year 2025, the Supreme Court has sent a notice to the banks in this case.
6. Premia Group- Between 2015-18, hundreds of people invested in projects like Premia Green Valley. Promoters absconded after the funds were diverted. HR head was arrested from Canada, but the project is incomplete. The new developer has taken over in 2025, but 70% of the project is still incomplete. More than 50 complaints have been registered in RERA regarding this.
7. Mist Avenue- According to the report, hundreds of buyers in the Festival City scheme of Noida Sector-143 relied on the EMI subvention offer during 2016-18. When the builder stopped giving EMIs, the project got stalled. The director was arrested in 2018 and now resolution is going on under NCLT. Only 30% work has been completed by 2025.
8. Asola Land Scam- According to media reports, in 2016, 30 acres of government land in Asola village was transferred through a fake court order, resulting in a loss of about Rs 600 crore. CBI had started investigation in 2017 and many properties have been attached, but complete settlement is yet to be done.

However, the government has also formed many institutions to deal with the challenges related to real estate. Major institutions formed for the protection of home buyers The Indian government has formed many important institutions and legal framework to curb the arbitrariness of builders in the real estate sector like project delays, misappropriation of funds and cheating the buyers. Their main objective is to protect homebuyers from any fraud and to get the house on time.

Real Estate Regulatory Authority (RERA)

RERA was established under the Real Estate Act 2016. This law was made by the Central Government, but it is implemented by each state's own RERA authority (like MahaRERA, UP-RERA). Its purpose is to protect home buyers from fraud and make builders accountable.

Headlines

• Every project whose area is more than 500 square meters or has more than 8 units, is required to be registered with RERA.
• Builders have to keep 70% of the project amount in an escrow account, so that the buyers' money is safe.
• Builders have to upload information about construction, finance and approvals on the RERA website every three months.
• If the builder delays the project, he has to pay SBI MCLR + 2% interest to the buyer.
• If the project is cancelled, there is a provision to give full refund + interest to the buyer.
• Buyers can directly file a complaint with RERA.
• Non-compliance of orders may result in heavy fine (up to 10% of the project cost) or blacklisting on the builder.

Speculation in front of RERA

• There is a shortage of staff in many states, due to which it is difficult to handle 80-100 cases coming daily.
• Claims are recovered only in 28% cases.
• Many cases remain stuck in “reserved orders” for months.
• Builders stop RERA case by going to NCLT.
• Many times one has to go to the High Court to get the order implemented.
• Many buyers are still not aware of their rights under RERA.
• Small projects are saved from registration.

National Company Law Tribunal (NCLT)

NCLT was established in the year 2016 under the Companies Act and Insolvency and Bankruptcy Code (IBC). It is a court-like institution that looks after the financial matters and bankruptcy related matters of companies. As soon as the case starts, an Insolvency Resolution Professional (IRP) is appointed, who handles the project. The main objective of NCLT is to get refund + interest to the buyers or completion of the project. RERA works at a smaller level, while NCLT handles larger financial defaults.

Obstacles in front of NCLT

• Many times the interests of homebuyers do not get priority, as banks and other creditors come first.
• NCLT is not a recovery forum, so buyers get limited relief.
• Some buyers earlier misused NCLT for blackmailing (which was stopped in the 2020 amendment).
• The process is lengthy and complex and difficult for small groups or individual buyers.
• Due to ongoing cases, many projects get halted and buyers remain in limbo.

Consumer Disputes Redressal Commission (CDRC)

This forum works under the Consumer Protection Act, 1986 (as amended in 2019). It works at three levels.

• District Commission – For cases up to Rs 50 lakh.
• State Commission – Rs 50 lakh to Rs 2 crore
• National Commission- above 2 crores

Headlines

• Home buyers are considered consumers.
• Buyer can complain on delay, poor quality or unfair practices.
• As relief, refund, compensation, interest or possession can be provided.
• A lawyer is not necessary here, the process is simple.
• The Supreme Court has said that all the three forums RERA, NCLT and CDRC can be used parallelly.

Difficulties facing CDRC

• The backlog of cases is huge. The solution takes 1-2 years.
• It is not that effective for large corporate defaults, NCLT is better there.
• Many times one has to go to a separate court to get the orders followed.
• Rural or less educated buyers find the process complicated.

The government is continuously trying its best to help people in the real estate sector. The institutions created by the Center are also working continuously. To some extent, decisions have been taken in favor of the people. But a lot of people's money is still stuck in this sector. People expect their share of justice.