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GB Nagar struggles to recover ₹1,500 cr dues from realtors
The Gautam Budh Nagar administration is struggling to recover financial dues to the tune of ₹1,500 crore from developers across the district
The Gautam Budh Nagar administration is struggling to recover financial dues to the tune of ₹1,500 crore from developers across the district. Despite orders from the UP Real Estate Regulatory Authority (UP-Rera) to recover the dues from the developers and pay the same to homebuyers, the administration could only recover around ₹80 crore, said sources.
“The UP-Rera keeps issuing recovery notices against the developers in response to petitions filed by homebuyers, who want a refund in cases where realtors have failed to deliver flats on time. If the administration fails to recover the dues despite the recovery notices, then what is the benefit of issuing them in the first place? Homebuyers are made to suffer,” said Arvind Kumar, an Aam Aadmi Party (AAP) leader and activist.
Administrative officials said that they have recovered around ₹80 crore in the last one year following orders from UP-Rera and the money has been given to homebuyers.
“We have followed procedures and tried to recover dues from the developers as our priority is to help homebuyers get justice. But there are cases pending against realtors in different courts and their properties are attached with the courts. In such a scenario, we cannot go ahead with the recovery process against a developer due to legal constraints,” said Suhas LY, Gautam Budh Nagar district magistrate.
The DM further said that wherever the administration can recover dues from the realtors, they have followed the process in the interest of the homebuyers.
“We are seeking help from all respective authorities, including the Noida and Greater Noida authorities to attach properties of realtors and auction them to recover the dues. But there are instances when nobody turns up to buy the assets during the auction due to legal hassles,” the DM added.
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