Earlier this week, the Greater Noida bench of UPRERA [Uttar Pradesh Real Estate Regulatory Authority] order to form a tripartite committee to complete a residential project in Greater Noida’s Sector Chi V, Kamrup Housing.
This stalled project is a 144-apartment housing and was launched in the year 2012 with the promise to offer possession by 2015.
According to an official, being a member this committee, a UPRERA member will act as the representative for both homebuyers and the builder. The official also said that if this project works successfully then the same model can be applied for the completion of other stalled projects.
Balwinder Kumar, a UP-Rera member said that this model can be used by the authority in case the developer/realtor promise to complete the project but the same remains incomplete due to financial problems. Also, a committee will be formed in such cases and an escrow account will be opened and filled with funds to complete the project.
He further said that UPRERA will act as a conciliatory in order to complete the halted project and to regularize the cash flow. This project was a limited edition affordable luxury project and in the initial stage the developer sold 111 flats but the sale of 31 flats out them was cancelled later. Also, the project was sold under the construction-linked plan and the possession of the same was due in 2015. The developer sold three and five bedroom apartments at a cost of Rs. 99 lakh and Rs. 1.7 crore, respectively.
The project is spread over 2.5-acre land and an escrow account will be opened with a deposit of Rs 60 lakh for the commencement of the pending work.