BUILDER STALLED ALL 17 PROJECTS ACROSS THE COUNTRY AFTER HUGE AMOUNT: AIR MARSHAL (RETD) P.S. GILL, DEMAND TO CONSIDER INVESTORS' INTERESTS BEFORE THE AUCTION OF WTC SEIZED BY GAMADA, PRESIDENT AIR MARSHALL P.S. GILL (RETD) ALSO CRITICIZED GAMADA AND PB RERA
Face2News/Chandigarh
Several investors have accused the operator of WTC (Noida) Development Company, builder Ashish Bhalla, of embezzling billions of rupees. The builder collected money from investors and stopped paying the installments due to GAMADA. Consequently, GAMADA resumed control of the project and is now preparing for an auction. Investors are demanding that their interests be considered before the auction. Investors have alleged that WTC has a history of misappropriating funds in 17 other projects across the country, and those projects have not been completed either.
In a press conference held on Wednesday at the Chandigarh Press Club, officials of the WTC (Noida) Chandigarh Allottees Association, formed by investors, revealed the company's wrongdoings. The association's president, Air Marshall (Retd) P.S. Gill, disclosed that the company bought 8 acres of land in an auction organized by GAMADA, SAS Nagar (Mohali) in 2015. After paying 22% of the auction price, WTC took possession of the land.
The allotment letter issued by GAMADA allowed WTC to develop and sell any part of the allocated site, based on which WTC started a commercial project offering office spaces and commercial areas of various sizes, ensuring a 10% return on investment. It was also ensured that the commercial project would be completed by March 2021, and the physical possession of the respective units would be handed over to various allottees.
Considering this representation to be accurate, around 1200 investors booked units of various sizes for office space or commercial areas. Most investors paid 70-90% of the sale consideration. However, WTC did not carry out construction work proportional to the collected amount and ultimately halted construction work and payment of assured returns by March 2022.
(SUBHEAD)It is alleged that WTC collected approximately Rs. 432 crores from various investors and also took loans amounting to Rs. 176 crores from various financial institutions and non-banking finance companies. Given the available amount, the project could have been fully completed, but the company neither paid the remaining land cost to GAMADA nor completed the construction.
Air Marshal (Retd) P.S. Gill highlighted the mistakes of GAMADA and PB RERA, stating that GAMADA allocated 8 acres of land to WTC for Rs. 131.33 crores at the 2015 auction and gave possession upon receiving 25% payment. The allotment letter allowed WTC to sell the project. Later, GAMADA neither monitored the project nor imposed any conditions for public interest protection. Eight years later, when WTC did not pay the EMI, GAMADA suddenly seized the plot.
He mentioned that the project is registered with PB RERA. By March 2022, WTC had made an additional withdrawal of Rs. 77.02 crores, but RERA neither forced WTC to comply with guidelines nor monitored the progress of the project. WTC periodically submitted reports on project progress to the Real Estate Regulatory Authority (RERA), Punjab. Even in the report dated 06.04.2023, it was confirmed that an additional withdrawal of Rs. 77.04 crores had been made by 31.03.2022.
