The Uttar Pradesh Real Estate Regulatory Authority [UPRERA] recently deregistered first residential project and this township is located in the plush location of the Noida city. The authority took this action as the stalled project has affected approximately 2,000 home buyers as they face long-delayed possession of the dwelling units from the past five years.
The Real Estate Regulatory Authority is taking stringent actions against defaulting players and the action of deregistration is the first-of-its-kind action awarded to a housing project in the Indian real estate sector.
In fact, the officials of the UPRERA authority said that this is the first case of deregistration under the RERA law that was introduced in the year 2016. The authority decided to deregister the Noida located project under Section 7 of the Rera Act after the developer failed to file a satisfactory reply to the notices served by the UP bench of the RERA authority. This township project commenced in 2007 and is valued at more than Rs. 1,500 crore.
The UPRERA officials found several irregularities in the financial records of the developer after which notices were issued against the company
Rajive Kumar, chairman UPRERA said that the directives for the deregistration of the project were issued after collecting information and making site visit after receiving complaints from multiple home buyers according to the provisions of the Rera Act.
He further said that the authority gave strict warning to the developer three months ago and the decision to deregister the township project is taken after giving the developer sufficient time to reply on the issued notices and other developers must see thing action as a warning for not abiding the law.
Abrar Ahmed, UP-Rera secretary said that the authority has to offer completion right to the homebuyers and also have multiple options. In fact, the RERA authority is planning a process where the home buyers can get rights to develop the stalled project in case of having financial funding to overlook the entire project.
Balwinder Kumar, member UPRERA said that this is the first time that the RERA authority took any such action.
On the other hand, the home buyers said that they expect possible completion of the project as some of them have completed the payment for the respective housing unit in the township. However, only 20 percent of the total cost was paid by some of the home buyers. Hence, the project completion is possible in case a new developer is roped in.
The UPRERA officials said that the authority will issue more show-cause notices in case the developer fails to make any progress in the project or fails to deliver the project on time. The notice can also be issued against the developer over the construction quality and delay in the project.