City residents’ body alleges fraud by developer

| | BHUBANESWAR
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City residents’ body alleges fraud by developer

Sunday, 05 September 2021 | PNS | BHUBANESWAR

The Z1 Residents’ Welfare Association (Z1RWA), an association of apartment owners of Z1 Project developed by Z Estates Private Limited (ZEPL) adjacent to the Nandankanan Road at Patia has been relentlessly fighting against the alleged unlawful, arbitrary, unilateral and fraudulent acts of the developer.

The ZIRWA at a Press meet on Saturday alleged that developer has  gross disregard  for “law of the land’ is having its “ own sets of law” for maximisation of its commercial gain at the cost of legitimate right, ownership and privileges of gullible home buyers.

Ownership of flats as a immovable property comprises absolute ownership in the respective flat (dwelling unit) and undivided impartibly proportionate share in common areas and amenities as defined under Odisha Apartment Ownership Act, 1982 and Real Estate (Regulation and Development) Act 2016 in tune with relevant provisions of Transfer of Property Act, 1882.

But ZEPL had grossly flouted all the above provisions of law and deprived the members of the Z1RWA from their legitimate ownership of all common areas and amenities as per the approved plan of  the  BDA in line with the Odisha Development Authority Building (Planning and Standard) Regulations, 2008/18/20. The community centre and club house being the alluring factor in buying a property in Z1 Project forms part of the common areas and amenities but the developer is holding its management rights illegally and depriving the owners from their right to own and manage the same.

The developer ZEPL had deceived the the Bhubaneswar Development Authority (BDA) regarding the ownership of the project land at the time of obtaining approval for addition and alteration to the approved plan whereby the members of Z1RWA had been duped of  crores of rupees.

The developer/ZEPL through its sister concern United Resorts and Services LLP (URS LLP) unlawfully held on to the right of management of common area and amenities and misutilised crores of rupees of maintenance charges without scant regard to propriety of  expenses.The ZEPL has illegally sold excess approved covered area whereby duping the gullible home buyers to the tune of 45 crores and above.

The developer is in forceful occupation of basement parking measuring approximately 13,000 square feet for his own stockyard without paying rental for last six years resulting in revenue loss of huge sum of money rupees to the Z1RWA members.

The developer has collected VAT amounting to crores illegally not having any VAT RC at the time of selling the flats and not deposited the same with the taxation authority.The ZEPL has used low-grade materials like water supply pipelines, requiring complete replacement within five years resulting in huge financial burden to the tune of  crores to flat owners, the association alleged. The developer had illegally utilised of  corpus fund collected from owners through its sister concern URS LLP without compliance of taxation implication of such expenses and proper discloslure of transactions.. It also also siphoned off lakhs of rupees of insurance claim under damages during cyclone Fani, the ZIRWA said.

 The developer has not provided a single-point power connection to the association and unlawfully distributing power through a domestic bulk consumer connection in its own name for its personal financial and commercial gain.

But when the association members are raising their voice against the injustice they are being threatened by hired musclemen, the ZIRWA  alleged.

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