Tuesday 5 March 2024

Trapped in Vijay Group Housing Ltds housing project hundreds of Senior Citizens on waiting for their shelter at last stage of life.

Homebuyers in Limbo as Vijay Estate Vakas Neral Housing Project Faces CRIP, Home buyers demand homes.

Neral, Maharashtra: Hundreds of homebuyers majority of which are senior citizens at their later stage of life, had purchased houses in Vijay Estate Vakas, a housing project in Neral, to support their life at old age, are facing difficulties with their lives and hopes for getting their houses at this age.

Mr.Chandrakant Dandekar 72 the chairman of the praposed home buyers association said, he had filed case in RERA, he got orders against builder, he wrote letter to CM and Prime Minister still he has not received possession of his purchased house in the project. The project, launched by Vijay Group Housing Ltd in 2015, promised 1 BHK and 2 BHK apartments at attractive prices, ranging from Rs 18 lakh to Rs 25 lakh.

According to reports, thousands of people expressed interest in the project, with around 400 making substantial payments to the builder. Construction of the 1,000 flats began in 2016, and about 70-80% of the work was completed. However, the project faced a major setback in 2019 when the owner of Vijay Group Housing, Shri. Varjlal Gala, died in an accident. His son, Ateev Gala, took over as the sole director, but due to lack of experience and financial difficulties, the company struggled to repay loans taken from lenders like L&T and Aditya Birla. The total loan amount for the project is estimated to be around Rs 300 crore. It is also learned that the money of the project is fraudulently transferred by builder to his own companies in the form of loans. No action is taken to recover the money from him and start the housing projects construction. Adding to the complexities, L&T sold its bad loan to the Asset Reconstruction Company Limited (ARCL), which is now part of the committee of creditors. The committee has reportedly approved a resolution for liquidation of the project, despite objections from homebuyers. Mr. Chandrakant Dandekar said, now day's builders are misusing the corporate bancuruptcy laws to cheat home buyers and to escape from action under criminal laws after doing financial frouds.

With mounting defaults, a case was filed in the Debt Recovery Tribunal (DRT) Delhi to recover the loan from Vijay Group Housing Ltd. Meanwhile, creditors initiated insolvency proceedings against the company under the National Company Law Tribunal (NCLT) and Corporate Insolvency Resolution Process (CIRP) was initiated.

The situation has left homebuyers in a precarious position. Around 356 buyers who have valid registered agreements and have paid about 98% costs, are still waiting for their flats. The buyers claim that they have fulfilled their financial obligations as per the builder's demands and are ready to pay the remaining dues. However, they want their homes, arguing that agreements of sale were signed and they are the rightful owners of the flats. 

The homebuyers have expressed their disappointment and anger at the turn of events. They are demanding that the project be completed and their flats be handed over to them. They are also exploring legal options to protect their rights and investments.

The Vijay Estate case highlights the plight of homebuyers who often get caught in the crossfire when developers face financial troubles. The legal complexities and lack of clear regulations make it difficult for buyers to get justice and secure their investments. It remains to be seen if the homebuyers in this case will be able to salvage their dream homes.

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