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Friday, Oct 18, 2019

GB Nagar to e-auction unsold flats to recover dues from builders

Homebuyers, who have won compensation from consumer forums and UP-Rera, are finding it difficult to get the orders executed as developers are not paying them the compensation.

real-estate Updated: Sep 20, 2019 11:57 IST
Vinod Rajput and Preety Acharya
Vinod Rajput and Preety Acharya
Hindustan Times, Nodia
The administration will have to identify all unsold flats, which have no legal issue. The administration will first take physical possession of these flats and then start the e-auction.
The administration will have to identify all unsold flats, which have no legal issue. The administration will first take physical possession of these flats and then start the e-auction. (Burhaan Kinu / Hindustan Times)
         

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera)Thursday asked the Gautam Budh Nagar and Ghaziabad administration to set-up a website and carry out e-auctions of unsold flats in housing projects to recover financial dues from builders.

The move comes after UP-Rera realised that homebuyers are failing to get refunds from projects that are delayed or facing other legal issues.

As per UP-Rera, there are 660 cases in Gautam Budh Nagar district, including Noida, Greater Noida and Yamuna Expressway area, while 200 cases are in Ghaziabad, where builders are failing to pay dues.

As per the process, if a buyer or government agency like Noida or Greater Noida authorities fail to recover its dues from a builder or other financial defaulters, then they can take legal help to recover the dues.

Homebuyers, who have won compensation from consumer forums and UP-Rera, are finding it difficult to get the orders executed as developers are not paying them the compensation. In such cases, UP-Rera directs the administration to issue a notice to recover the dues. Similarly, to recover land dues from developers, the authorities gets the district administration to issue a recovery certificate/notice. Once the notice is issued and no payment is made, the administration attaches and seals the assets of the defaulter.

“The administration has sealed a few properties of the 860 projects in Gautam Budh Nagar and Ghaziabad districts. But the sealing drive is not yielding any results for homebuyers, who are unable to get their refund. The builders say they do not have the fund to pay out refunds. We have asked the administration to de-seal those projects, which are sealed and start e-auctioning of properties to recover dues,” Balvinder Kumar, member of UP-Rera, said.

As per Rera Act, builders such as 3Cs, Shubhkamna, Cloud-9 and Unitech, among others, are facing recovery certificate proceedings.

Administration officials have recovered only ₹26.37 crore since April this year for 2019-2020. Officials had recovered around ₹25.93 crore till March 31, 2019, for the year 2018-2019. The UP-Rera officials said it needs to recover around ₹450 crore against 860 recovery certificates issued in the two cities.

The UP-Rera held a meeting with Gautam Budh Nagar district magistrate BN Singh, additional DM MN Upadhyay and Ghaziabad administration official at Greater Noida’s Sector Gamma-I office.

“Now, the administration will separately engage a central government agency that will create a website and carry out an e-auction of unsold flats to recover dues from builders. We will keep the unsold flat’s cost relatively cheaper so that they are easily sold in order to generate funds,” Kumar said.

The administration will have to identify all unsold flats, which have no legal issue. The administration will first take physical possession of these flats and then start the e-auction.

“We will carry out the e-auction as per law and also de-seal properties,” BN Singh said.

The Noida authority chief executive officer Ritu Maheshwari said her office was not aware of this development.

First Published: Sep 19, 2019 21:08 IST

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