UPRERA i.e. a state authority to regulate the property market in Uttar Pradesh has walked out from two stalled residential projects in Noida. A new developer was supposed to be roped in for the completion of these projects as there are 55 notices withheld along with orders so that the collision of proceeding in the National Company Law Tribunal (NCLT) and other courts in the same cases filed by the buyers.
Balwinder Kumar, UP-Rera member said that there is a need to review the limited powers authorized to the RERA authority and few amendments to the same will make working easy and effective.
The decision to exit from these projects was made by the Uttar Pradesh Real Estate Regulatory Authority [UPRERA] while considering the order passed by the Supreme Court on 9th August. The Court in its order clearly said that the latter case will be put on hold if the proceedings by Rera and those governed by the Insolvency and Bankruptcy Code overlaps.
Kumar further said that the authority moved out of the project only after a buyer sought legal action and in the second case, the developer challenged the authority in the appellate tribunal over the notice to deregister the project was issued.
Balwinder Kumar, UPRERA member was quoted saying that the ruling of Supreme Court has cleared all the doubts related to the regulator and insolvency code. The proceedings of NCLT will go ahead in case of overlap in which a project is required to be taken over for completion. The regulator now will majorly hear the complaints and supervise the completion of projects.
He also said that the NCLT-appointed IRP (insolvency resolution professional) has vested its rights via Section 20 of the Act, that ask for the completion of projects.
The UPRERA member also said that the few more amendments to the RERA Act will make it stronger as presently they have no right to direct the Noida or Greater Noida authorities. However, the authorities work in sync with each other but the officials of UPRERA cannot order these two authorities directly.
In continuation to the same, Kumar said that the authority can summon a developer but do not have the right to arrest the person for violating the law. A lot more can be done to the Act to make it strong as it will make the implementation of the same easy, Kumar said.