E-Paper
Promoters can charge interest for non-payment of instalments: UP RERA
The issue of non-payment of allotment amount was brought to the notice of UP RERA officials during a recent review of projects that were stuck and had been restarted by the regulatory authority
LUCKNOW The UP Real Estate Regulatory Authority (UP RERA) has ruled that in case of non-payment of instalments by house allottees, the promoters have the right to charge interest or cancel the allotment, said officials.
The issue of non-payment of allotment amount was brought to the notice of UP RERA officials during a recent review of projects that were stuck and had been restarted by the regulatory authority. As many as 12 such projects are underway across the state.
“This was resulting in depletion of financial resources and delay in timely completion of projects,” complained promoters during the meeting.
Action is being taken under Section 8 of the RERA Act 2016 to complete such projects, said RERA authorities.
UP RERA has laid down terms and conditions for both promoters and allottees to ensure availability of funds for these projects for time-bound completion.
Project advisory and monitoring committees have been constituted to see that the development work of these projects goes on without any hindrance. The progress of project is reviewed by this committee every quarter with the promoter and group of allottees concerned.
In projects where development work is stalled due to non-payment of remaining instalments, notice should be sent by the promoter/group of allottees concerned to those allottees who have not paid their remaining instalments.
In case of non-payment of these instalments within the stipulated time, the balance amount of instalment has to be paid with the interest at the rate of SBI Marginal Cost of Funds Based Lending Rate (MCLR) plus one percent.
A notice should be sent to such allottees who have not paid two consecutive instalments to pay the balance instalment along with interest rate of SBI MCLR plus one percent within one month.
It should also be mentioned in this notice that if the allottee does not pay the third instalment along with the remaining two instalments on time, then his allotment will be cancelled.
It should also be clarified in the notice that after cancellation of allotment after deducting the booking amount and interest related liabilities, the principal amount deposited will be returned to the allottee only after the unit is re-sold or the project is completed, whichever happens earlier.
