What’s the next step for SpireWoods and SpireEdge buyers?

Whether it is buying a home or investing in commercial property, it is not an easy task as one might imagine. Not only does it involve a lot of funds, but the whole process from signing the deal to actually getting the possession of the home can be very tiring and stressful. A perfect example for this is the discomfort and drudgery that is being faced by the SpireWoods and SpireEdge property buyers.

By now, we all know that both these projects were launched by the developer AN Buildwell which were due for the handover of possession by the end of 2014. However, it has now been almost 2 years that the construction of these projects has stopped and the developer had filed for liquidation. It was the joint effort of all the customers and buyers of these projects that brought them together to fight for their rights and successfully file the revival scheme with the Delhi High Court.

Well, it definitely is a case of misconduct by the developer as there are several pieces of evidence proving the same. However, after the sustained pressure from the Haryana government and all the buyers, the developer is now finding ways to bring the project to the completion. While the High Court will hear the case on October 26th, the overwhelming support and hard work towards the common goal of the revival of the two projects is seeing some prolific results.

More than 80% of the creditors have come in the support of the customer associations along with the combined membership of more than 980 customers. Several steps have already been taken and many are in line to be taken before the hearing takes place on October 26th. FOSECA members have held discussions with the Board of Directors of SELFC and the members have also been added to the Board of SELFC. SELFC is now taking steps to modify its constitution to include Non-Registered Customers of all Blocks. While there is still the complaint and FIR at EOW Delhi against the promoters, Maj. SK Hooda and Mr. Sunil Gandhi have asked for time to gain access to the records so as to respond to EOW. But the question that tickles our brain is if they did not have any records, then how they could file a revival scheme? Is it another of their scams or is it a delaying tactic?

All the associations combined have moved an application seeking attachment of the Funds other assets in India. The Provisional Liquidator has been instructed to file his report within 14 days, which would be before October 26th, following which the Honorable High Court will give its ruling on (a) Ordering an SFIO Enquiry, (b) Passing an injunction against the Fund’s other assets in India.

Even though there are several questions which have been raised by the members of the associations which still remain unanswered, FOSECA and SWBA have put forward 6 point agenda as below which if the promoters agree to by furnishing adequate support and commitment in writing, then the associations are ready to file a modified scheme.

1. Equal board representation for customers with veto rights

2. Third party Professional Management of company and projects

3. Court commissioner’s oversight

4. Escrow accounts for each aspect

5. Return of advances taken by promoters

6. Payment of Arrears, Claims and Compensations as per scheme filed by associations

While each day counts and the EMIs of the buyers are still going on, the associations have worked tirelessly for last few months to make the progress in making customer records and ledgers for SpireEdge and SpireWoods, and detailed survey of SpireEdge project and inventory and detailed survey of SpireWoods and structural assessment.

While the associations will make an effort to meet with the promoters with legal counsel on both sides, the day of October 26th is much awaited by everyone. It will be the time when things will get clear and hopefully, a verdict will be passed in the favor of all the customer associations.