GB Nagar cracks down on realtors owing around ₹500 crore to UP-Rera

District magistrate Manish Kumar Verma asked officials to carry out a drum beating announcement in public places to ’name and shame defaulter realtors’ and to warn them of legal action

The Gautam Budh Nagar district magistrate has instructed the administrative officials to crack down on errant builders who have failed to respond to the notices of the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) demanding payment of dues.

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Addressing a meeting on Monday, district magistrate Manish Kumar Verma asked officials to carry out a drum beating announcement in public places to “name and shame defaulter realtors” and to warn them of legal action, including attachment of properties, if the dues remain unpaid.

District officials said they have recovered around ₹500 crore from various developers against whom UP-Rera has issued notices over the past 1.5 years.

Verma said, “Directions have been issued to officials to launch a drive against the defaulting builder. As directed, munaadi (drum beating) will be carried out near the properties of defaulter builders and they will be named and shamed. Process of attaching properties, etc, will be done subsequently in case of non-compliance.”

Verma said the aim is to create pressure on the defaulters so that maximum amount is recovered at the earliest.

Additional district magistrate (finance and revenue) Atul Kumar said, “Amount to the recovered is nearly ₹500 crore for which UP-Rera has issued notices. Action will be initiated against developers as despite the recovery notices issued, they have failed to acknowledge it.”

Since 2018, overall recoveries made is around ₹365 crore and during last year, Gautam Budh Nagar administration managed to recover ₹200 crore from defaulters. Several erring builders had also reached a settlement with homebuyers during last year, said officials.

“Efforts for recovering the outstanding amount will now be intensified and there is no way to escape the process and action which will be taken in case of non-compliance,” said the ADM.

“We inform the district administration about defaulters and further due process is taken up by the administration. All details have been provided from our end. There are as many as 426 builders in Gautam Budh Nagar who owe dues,” an UP-Rera official said, asking not to be named.