The Supreme Court has sought responses from the Haryana government and real estate developer Mahira Buildwell (formerly Czar Buildwell) in connection with serious allegations of cheating homebuyers under an affordable housing project in Gurgaon launched under the Pradhan Mantri Awas Yojana (Urban).
The matter was taken up by a Bench led by Chief Justice of India Surya Kant, which is examining claims that economically weaker section (EWS) homebuyers were defrauded through fraudulent licensing, diversion of funds, and prolonged delays in construction.
Allegations of Fraudulent Licensing and Fund Diversion
According to the petition filed by an association of affected homebuyers, Mahira Buildwell allegedly secured the project licence through forged bank guarantees and fabricated signatures. Despite collecting substantial amounts from allottees, the developer is accused of completing only 5-7 per cent of construction work, while siphoning off buyers’ funds.
The project was part of the state’s affordable housing scheme aimed at providing standardised dwelling units to EWS beneficiaries.
Supreme Court Expands Scope of Inquiry
In addition to summoning the Haryana government and Mahira Buildwell, the Supreme Court has also sought responses from:
- Haryana RERA (HRERA)
- Enforcement Directorate (ED)
- Axis Bank
- Canara Bank
The Court noted that it is already dealing with multiple cases involving builders allegedly colluding with banks to misuse subvention schemes, resulting in widespread homebuyer distress.
Link to Larger Builder-Bank Subvention Scam
The Bench observed that similar cases have earlier led to a CBI probe and the registration of 28 FIRs against builders, highlighting a systemic pattern of misuse of housing finance structures to the detriment of homebuyers. The present matter is being examined in that broader context.
Homebuyers Allege Regulatory Failure
The petitioner association submitted that the crisis was aggravated by a lack of due diligence and regulatory oversight on the part of authorities. Despite repeated complaints, representations, and even contempt proceedings, no effective remedial action was taken. The association alleged failures on the part of:
- The Central government
- The Haryana government
- The Director of Town and Country Planning
- Haryana RERA
- Concerned banking institutions
“Due to the failure of competent authorities to enforce statutory schemes, members have faced substantial financial and mental stress,” the petition stated.
Construction Delays and Buyer Hardship
Despite recurring and periodic collections from allottees, the developer allegedly failed to carry out time-bound construction, a mandatory requirement under the affordable housing scheme. Many buyers, having paid significant portions of the cost, continue to face uncertainty over possession and repayment obligations.
Case Significance
The Supreme Court’s intervention underscores growing judicial scrutiny over:
- Affordable housing implementation failures
- Builder accountability
- Role of banks in housing finance arrangements
- Regulatory lapses under RERA and state housing laws
The outcome of the case could have wider implications for affordable housing governance, particularly in projects involving public welfare schemes.
Next Steps
The matter is expected to be heard further after responses are filed by all concerned parties. The Court’s directions will be closely watched by homebuyers, regulators, and the real estate sector.
Source: TOI