In a major enforcement action in Haryana’s affordable housing sector, authorities have filed an FIR against M/s Ocean Seven Buildtech (OSB) Pvt Ltd and its director Swaraj Singh on charges of financial fraud, licence violations, and large-scale project irregularities. The complaint, lodged by the district town planner (enforcement), has also led authorities to seek a lookout circular (LOC) against Singh amid fears he may attempt to flee the country.
The FIR, registered under Sections 10 and 12 of the Haryana Development and Regulation of Urban Areas Act, 1975, has been handed to the Haryana State Enforcement Bureau (HSEnB) sub-inspector for investigation. According to the complaint, OSB had been granted licences between 2016 and 2019 to develop three affordable group housing projects in Gurgaon’s Sector 109 (7.5 acres), Sector 69 (5.41 acres), and Sector 70 (5.10 acres). However, repeated violations led to licence suspensions in February 2023 under Section 3(3) of the Act.
Buyers have alleged multiple sales of the same unit to different allottees, leaving hundreds of families financially stranded. The FIR also highlights defaults on outstanding dues totaling ₹21 crore against the suspended licences. Despite the suspension, the developer allegedly continued to collect payments from buyers, cancel units, divert funds, and resell cancelled apartments. Investigations revealed that while almost 95% of buyer payments had been collected, only around 62.5% of construction work was completed. The projects have remained stalled since 2019, with negligible progress.
Audits conducted by the Haryana Real Estate Regulatory Authority (HRERA) reportedly flagged falsified progress reports, while the Department of Town and Country Planning (DTCP) accused OSB of non-cooperation with forensic audits ordered by regulators. The director of the company also faces several legal cases, including a non-bailable warrant. Authorities have described the situation as severe, noting a “grave apprehension” that Singh may abscond to avoid criminal proceedings and financial liabilities. Consequently, the commissioner of police has been requested to issue the LOC, and the Ministry of External Affairs and Bureau of Immigration have been informed. The matter has also been escalated to the Haryana government and the Chief Minister’s office.
Meanwhile, buyers’ associations have demanded intervention under Section 8 of the RERA Act, 2016, which empowers HRERA to take control of incomplete projects. Associations contend that thousands of homebuyers have invested their life savings but remain stranded due to the stalled projects. They have called on the government to act swiftly to protect end-users and prevent further financial distress.
Analysts say that the OSB case highlights systemic issues in Haryana’s affordable housing sector, including weak monitoring mechanisms, repeated violations by developers, and delayed regulatory intervention. Observers suggest that stronger enforcement and timely audits are crucial to restore buyer confidence and prevent recurrence of similar irregularities in the market.
Haryana authorities have emphasized that the ongoing investigation aims to ensure that the defrauded buyers receive due protection. Officials also indicated that regulatory measures, including potential takeover of the stalled projects, could be considered to expedite completion and mitigate the losses borne by homebuyers.
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