Gurgaon, 10 July 2024 – The Department of Town and Country Planning (DTCP) has suspended the licence of the commercial project Spaze Arrow in Sector 78 due to multiple deficiencies in its completion. The project, which was launched in 2012 on three acres of land in collaboration with the landowner, was expected to be completed by September 2016.
The suspension order, issued by the DTCP director on July 1, came after the Haryana High Court directed the department on May 31 to take action within two weeks. The directive followed a petition filed by Ishan Singh, the landowner, regarding the developer’s non-compliance with the collaboration agreement.
“Despite receiving a closure notice from the Haryana State Pollution Control Board (HSPCB) in November 2014, the developer began construction without the necessary environmental clearance. By January 2017, the project was sealed by the board. By then, Spaze Towers had illegally constructed 14 floors and collected Rs 77 crore from buyers. I cancelled the agreement as Spaze Towers failed to adhere to terms,” Singh told TOI.
The DTCP has directed the developer to clear dues of Rs 16 crore as external development charges (EDC) and submit a structural audit report. The move highlights significant lapses in adhering to regulatory norms and financial obligations.
In response, Spaze Towers stated that they have challenged the arbitral tribunal’s order to cancel the collaboration agreement, with a hearing scheduled for September 26. Regarding environmental violations, the HSPCB issued a de-sealing order in December 2019, after sealing the project in January 2017. The developer argued that a ‘status quo’ order granted by the arbitral tribunal prevented them from fulfilling their obligations. “The landowner continued to accept sale consideration against his allocation in the project. We have deposited the statutory fee and charges, including Rs 11 crores as EDC, and Rs 16 crores are due. The licence renewal conditions could not be met,” Spaze Towers stated in their reply submitted to DTCP on June 28.
Efforts to reach the directors of Spaze Towers, Harpal Chawla, Aman Sharma, and Bharat Kumar, for comments on the licence suspension and DTCP order were unsuccessful.
This suspension marks a significant action by the DTCP to ensure compliance and accountability in real estate projects, safeguarding the interests of stakeholders and maintaining regulatory standards. The upcoming hearing on September 26 will be crucial in determining the future course of action for the Spaze Arrow project and its stakeholders.
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