Real Estate Firm Faces Criminal Charges in Ludhiana Homebuyer Dispute
The Sarabha Nagar police station in Ludhiana has registered a First Information Report (FIR) against officials of Hero Homes Realty Limited following a complaint by local resident Falitash Jain, who alleges the company failed to deliver four flats despite receiving full payment. The FIR, filed on Friday, marks a significant escalation in a dispute that highlights growing concerns about real estate project delivery in Punjab's industrial hub.
Homebuyer's Allegations: Paid Rs 2.41 Crore for Undelivered Flats
According to the police complaint, Falitash Jain, a resident of New Madhopuri in Ludhiana, paid approximately Rs 2.41 crore to Hero Homes Realty Limited for purchasing four units in their Ludhiana project. Jain claims the booking was made in 2018, but the construction of the flats was never completed despite repeated assurances from the company.
Based on Jain's complaint filed on May 23, police have booked Hero Realty director Sunil Kant Munjal and sales head Nikhil Jain after conducting a preliminary investigation. The FIR has been registered under sections of the Bharatiya Nyaya Sanhita pertaining to cheating, criminal breach of trust, and criminal conspiracy.
Company's Defense: Dispute is Purely Civil Matter
Hero Homes Realty has strongly denied all allegations, releasing a detailed statement claiming the dispute is purely of a civil nature. The company asserted that Jain's allegations "do not make out any offence" against the company, its directors, or officials.
According to the company's version, the dispute relates to four units in their Ludhiana project that were cancelled in October 2021 due to "consistent defaults" by Falitash Jain in making payments. The company clarified that they received approximately Rs 2.08 crore against the total sale consideration of approximately Rs 3.25 crore.
The statement revealed that Rs 1.75 crore was remitted by the bank, with Falitash Jain and his family paying only approximately Rs 32 lakh. Regarding the three bank-funded units, the company stated that the balance amount after forfeiture was refunded to the bank.
Construction Completed, Possession Offered: Company
Countering the allegation of non-completion, Hero Homes Realty claimed the construction was completed in 2021 and they received the occupancy certificate. The company stated that possession was offered to Jain and his family in July 2021, but couldn't be handed over due to their "default in making the balance payment."
The real estate firm emphasized that their project was successfully delivered and currently houses more than 210 families. They described the police complaint as "vague, frivolous, devoid of merits and an attempt to misuse police machinery."
Ongoing Legal Battle and Consumer Complaint
The company revealed that Falitash Jain and his family members have also filed a consumer complaint against them, seeking refund of the amount paid with interest. This complaint is currently pending adjudication.
Police officials confirmed that further investigation is underway in the criminal case. The situation represents a classic clash between homebuyers seeking criminal action for alleged cheating and developers insisting that payment default disputes belong to civil courts.
The case has drawn attention to the real estate sector in Ludhiana, where delayed projects and buyer-builder disputes have become increasingly common. As both parties prepare for a prolonged legal battle, the outcome could set important precedents for similar disputes across Punjab's real estate market.
