Setting aside the orders of the Real Estate Regulatory Authority (RERA), Punjab, the Real Estate Appellate Tribunal, Punjab, has allowed Wooden Heights Developers Private Limited to advertise and sell its housing project in Mohali’s Sector 86, but with conditions.

In July 2023, RERA, Punjab had stayed all further developments of the housing project following a complaint by Rohan Bansal, a resident of Sector 21, Chandigarh, who had accused Shaurya Township Pvt Ltd of transferring the project to Wooden Heights Developer Pvt Ltd without RERA approval.

Bansal had submitted that he was the director of Shaurya Township Pvt Ltd and holding 28% shares. On June 13, 2015, a transfer agreement was signed, wherein Bansal’s shares were sold to Manjit Singh, the new director of the company, and Bansal resigned from the post.

The company agreed to pay him ₹3.74 crore and to secure the payment, the company allotted seven apartments in its project “Shaurya Ananda” as collateral. Coming up in Sector 86, the project is registered with RERA.

Bansal said as per the agreement, if the company failed to make timely payments, he would have the right to deal with the property in any manner. Since payments were defaulted, Bansal filed seven complaints for seeking interest for delayed possession, along with actual legal possession.

But during the case proceedings, Bansal got to know that the Shaurya Ananda project had been handed over to Wooden Heights Developer Pvt Ltd and its the name changed to “Woodland Heights”.

He alleged that this was done without taking approval from RERA, hence violating the Real Estate (Regulation and Development) Act, 2016.

On May 27, 2023, Bansal had filed a complaint with RERA, seeking a stay over the project and directions to Shaurya Township Pvt Ltd not to hand over the project without RERA’s approval.

After no one appeared before RERA on behalf of Wooden Heights Developer Pvt Ltd, the authority had ordered, “The secretary of this authority is being directed to put up the case before the full bench of the authority with regard to transfer of ownership of the project. Till such time…all further developments of the project are hereby stayed.”

Subsequently, the developer challenged the order before the Real Estate Appellate Tribunal, Punjab, that allowed the petitioner to advertise and sell the project with conditions.

‘Cautionary note must in advts’

While issuing the orders, justice Mahesh Grover (retd) said that the advertisement shall carry a cautionary note about the pendency of the proceedings before RERA. Any booking done and amounts received by the appellant shall be intimated to the authority in compliance with Section 4 (D) by submitting a detailed financial statement.

The project spread over around 3.5 acres is located on the premises of Preet Land Promoters and Developers Private Limited and is coming up with five towers having 258 flats, both 3BHK and 4BHK. Two towers of 88 flats have been completed.

Naushad Watts, managing director of Wooden Heights Developers Private Limited, said it was a major relief as the project was stuck for the past one year. “The tribunal has upheld the principles of fairness and expediency in real estate adjudication, considering the interest of the developer and stakeholders,” he added.