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Trump Towers Faces Hurdle in Delhi NCR

March 20, 2018 | Admin

Trump Towers Faces Hurdle in Delhi NCR

The luxurious Trump Towers residential complex in Gurgaon has hit a hurdle, months after it was launched. The Trump Towers Delhi NCR was launched in January 2018 and the project was hard-sold by the son of the American President, Donald Trump Jr. However, just after a couple of months after its launch, the project has run into blockades.

The Town and Country Planning Department (TCPD) in Haryana have objected the launch of the project, before granting the joint development and marketing rights to Olive Realcon Pvt Ltd. The rights for Olive Realcon Pvt Ltd were sought by the licensee. A show-cause notice has been issued by the department to project licensee Manglam Multiplex Pvt Ltd. The group has been asked to explain the reasons behind not initiating the proceedings against the project developers under the Regulation of Urban Areas Act and Section 10 of the Haryana Development. Section 10, dealing with the penalties, states that any person contravening the provisions of the Act or the conditions of a license will be punished with imprisonment, the terms of which may extend to three years and a fine may also be imposed in these cases.

Haryana Real Estate Regulatory Authority (HRERA) is also likely to look into the matter, under Section 7 of the Real Estate (Regulation and Development) Act, for canceling the registration of the developers. They have been suspected of conducting unfair practices, and hence, the regulatory body needs to have a look into the matter.

 Objections have also been raised by TCPD to the showcasing of the brand of trump and mentioning of Tribeca Developers, which is the exclusive representative of the Trump Organization in India, in advertising the project without the approval. As a result, the promoters have been receiving both reaping returns and commercial viability.

 In January 2018, the Trump Tower project had been launched on a collaborative basis by M3M and Tribeca Developers. Donald Trump Jr, heading the Trump Organization, made a visit to India in February. M3M Developers said in February that properties worth INR 500 crores were already sold after the project was launched in January.

 The two 600-foot towers house around 250 apartments in the complex. The residential complex is located close to a golf course in Sector 65 of Gurgaon. The estate is located on the southern outskirts of Delhi, in Haryana. The prices of these apartments vary between INR 5 crores to INR 9 crores.

 Manglam Multiplex holds the license of the project. However, the project advertisers have mentioned both M3M Developers and Tribeca Developers. According to the advertisement, Trump Towers Gurgaon is a joint venture between Tribeca and M3M Developers. Olive Realcon is a new entity in the deal. Magnum Multiplex has sought permission from the TCPD for Olive Realcon to assign the marketing and joint venture rights. As of now, the approvals are pending. Trump Tower Delhi NCR website has a disclaimer, stating that Olive Realcon is the owner and developer of the property and it uses the Trump name and mark under license. Under one of the clauses of the agreement, the name of the license of the project has to be displayed to the advertisers prominently. In 2007, Basant Bansal acquired the license of the project land in the name of Magnum Multiplex. That year itself, M3m was launched. According to a TCPD official, the show-cause notice has been issued in the name of Magnum Multiplex as it can only be issued on the license holder.

Also Read: Trump Towers Delhi NCR Sells 20 Luxury Apartments in One Day

The Trump Organization does not own, develop or sell the project, and the group has licensing agreements with its partners in India, who developed the project and acquired the Trump brand name by making a payment of a fee.

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