NCDRC issues non-bailable warrants against promoters of Greenopolis project of Gurugram

NEW DELHI: Hearing a batch of applications seeking implementation of its orders the National Consumer Disputes Redressal Commission (NCDRC) has issued non-bailable warrants (NBWs) against directors of Orris Infrastructure Pvt. Ltd. Group (Orris Group), in a case of failure to deliver homes to buyers in the Greenopolis project in Gurugram, where its Directors were co-promoters.   

The order has been passed for non-compliance of various decrees passed by the NCDRC in this regard, including execution decrees.

This is not the sole instance for Orris Group has failed to deliver projects, thus jeopardizing the homebuyers’ investments – Aster Court Premium is another such project, also in Gurugram. Orris Group was directed to pay 30 individuals in this project.

The Commission reasoned that under Section 18 of the Real Estate (Regulation and Development) Act, 2016 the buyer can ask for refund from any co-promoter, and as Orris Group was a co-promoter, there is no reason to stay execution proceedings against it.

“Since the decree has neither been complied with nor nobody (anybody) appears on behalf of the Managing Director or Director in the Court, issue non-bailable warrants to Vijay Gupta, Managing Director and Joginder Kumar, Director,” it held.

Facts of the case

The brief facts of the case are that the applications were filed for executing the order of NCDRC in a complaint of July 2020 against 3 C Shelters Pvt Ltd and Orris Infrastructure Pvt Ltd upon which the Commission had passed an order in favour of the buyers, however, this order was not implemented by the developer companies.

Therefore, the buyers approached NCDRC seeking implementation of the orders through execution applications.

At the time that these applications were filed 3 C Shelters Pvt Ltd went into moratorium following an order of the National Company Law Tribunal. Then, although the companies sought abeyance of the execution order, the Consumer Forum refused the same stating that the promoters could still be proceeded against as personal guarantors.

On August 16, 2022, therefore the execution applications were disposed, directing the promoters to implement the decrees within 3 months.

The homebuyers then filed an application before NCDRC to revive their application, on which the companies informed NCDRC that its judgment has been stayed by the Supreme Court.

However, NCDRC once again sought compliance holding that as the companies had not filed appeals in the particular complaints of this case, but only against a common order, the execution would still have to be complied with. They were, thus, directed to either comply with the order or appear in person, both of which they flouted.

Hence, the Commission issued NBWs against the co-promoters - Vijay Gupta, Managing Director and Joginder Kumar, Director of Orris Group.

The homebuyers were represented by a team comprising Mr. Aditya Parolia, Ms. Sumbul Ismail & Ms. Ishita Singh.