Capital Smart City has just announced a rather shocking, unethical, and brutal policy: imposing massive escalation charges on members of villa apartments in Harmony Park. Not only has the society introduced these charges, but it has also warned that those unwilling to pay the additional amount will have their allotments cancelled, with a refund issued as per company policy.
In this article, we will go over the details of this announcement by HRL and highlight the possible way forward for affected members.
Escalation Charges Announced on June 16, 2025
On Monday, June 16, 2025, Capital Smart City circulated an official notification regarding the imposition of escalation charges on allottees of Harmony Park Villa Apartments.
Below is a summary of the notification:
The society cited several reasons behind this decision:
- Ongoing economic recession
- High inflation
- A threefold hike in construction material costs
As a result, it claims that the situation constitutes a force majeure, compelling the society to revise its policies regarding payment and possession of the Villa Apartments.
The notice clearly states:
Members who are not willing to pay the dues at escalated prices will be eligible for a refund as per company policy.
Furthermore, it refers to clause #26 of the original booking form, which states:
In addition to the dues and any dues payable under applicable laws, the allottee will be liable to pay escalation and other charges at the rate to be specified from time to time to accommodate escalations in the cost of raw materials and provision of other amenities/services for urban development.
What Is the Escalation Amount?
While the notification does not mention the exact figure, based on the original prices and current market rates in Capital Smart City, members could face up to 100% escalation in apartment cost.
To confirm the exact amount, members are advised to check their updated statement through the online portal or contact the official helpline provided by the society.
Why This Policy Feels Unfair and Brutal
The Harmony Park Villa Apartments were launched in 2020 with a 4-year payment plan, meaning most members completed their dues by mid-2024. Even for those with later bookings, payments are either completed or nearing completion.
These apartments were offered at very attractive prices — Rs. 26.85 lacs for a 3.5 marla apartment and Rs. 36.10 lacs for a 5 marla unit. The project was launched as a low-cost housing option, targeted at the lower middle class. That’s precisely why these apartments sold out rapidly. However, HRL appeared to focus more on selling files than on delivering the project.
Despite receiving full payments, Capital Smart City has failed to deliver the villa apartments on time. We are now in mid-2025, and instead of delivering, the society is now shifting the cost burden back to its own members.
Full Payment Members Being Penalized
Many members had paid the full amount in advance, back in 2020, hoping to benefit from discounts and priority allotment. Now, they are being told to pay significant additional charges or accept a refund — potentially with deductions — which can only be described as financial exploitation.
For members, there is no ideal option. Agreeing to escalation means buying the same apartment at double the cost, while applying for a refund is not only painstaking but also results in receiving less than what was paid.
If the revised cost is beyond your budget, your only option may be to sell off the apartment file in the open market and make a bitter exit, rather than endure the refund process.
Not the First Time
This is not an isolated case. Previously, the society had applied similar escalation charges to Smart Villas, affecting even those members who had paid up to 79% of their dues. No relaxation was granted, and many were forced to either pay the inflated charges or forfeit their investments.
At the same time, numerous members who have paid 100% amount are still waiting for possession, as Capital Smart City continues to delay delivery.
Private Schemes Lack Accountability
What we’re witnessing is a serious issue: private housing schemes operate without strict accountability, while the general public remains completely vulnerable to such unilateral and exploitative policy changes.
This is a gross violation of trust and misuse of public funds. It is time for government institutions and regulatory authorities to step in and stop such practices before more members are financially harmed.
A Call for Unity and Justice
The members must consider uniting and raising their voice against this unfair escalation policy. Even if the society argues that it cannot deliver apartments at the old cost, the least it can do is return the money with fair profit, compensating for the years of investment and lost opportunities.
Those who trusted HRL with their hard-earned savings deserve fair treatment — not penalty, delay, or deduction.
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