In a first, RERA allows transfer of rights between firms for project completion

The Uttar Pradesh real estate regulatory authority (UPRERA) has allowed the “transfer of majority rights” in the realty project -- Bizlife -- in Noida’s Sector 62 from an old promoter to a new one who wants to finish and deliver the delayed project in time, said officials on Wednesday

The Uttar Pradesh real estate regulatory authority (UPRERA) has allowed the “transfer of majority rights” in the realty project -- Bizlife -- in Noida’s Sector 62 from an old promoter to a new one who wants to finish and deliver the delayed project in time, said officials on Wednesday.

The UPRERA has allowed the change under Section 15 of the RERA Act, said officials. (Sunil Ghosh /HT)

The move will not only safeguard the interests of buyers but also enable the new promoter to deliver the same according to the rules.

The UPRERA has allowed the change under Section 15 of the RERA Act, said the officials.

“We have allowed this kind of a transfer of majority rights from an existing promoter to an intending promoter in a company under Section 15 of the RERA Act for the first time. The existing promoter was unable to construct and deliver the proposed project, so we had to bring a new promoter and also got the consent from the majority of the buyers to do so,” said Rajive Kumar, chairman of UPRERA.

This project -- Bizlife -- is located in Noida Sector 62 spread over a 20,000-square-metre area. The project started in July 2017, with a completion deadline of October 31, 2023. On November 8, 2021, the transfer of majority rights from the existing company to the new one was done along with the consent of 519 out of the total 750 allottees. According to the proposal submitted before the RERA, the work at the site has been at standstill for four years and the move was crucial for the revival of the work as two-third buyers, including the association, had given their consent for the transfer, Kumar added.

The Solutrean Building Technology Limited (SBTL) allegedly failed to deliver the commercial project.

“The Urbanac Building Technologies will be responsible to follow all the terms and conditions under the Uttar Pradesh Real Estate Regulatory Act,” said Kumar.

In the past, the RERA allowed the buyers’ associations and the contractors to finish stuck projects in the state including Noida, Greater Noida and Ghaziabad among others.

“There are at least 12 such cases where we have allowed the buyers associations to make arrangements, paving way for the delivery of stuck realty projects in Noida and Greater Noida under sections 7 or 8 of the Act. But, for the first time, we have used Section 15 of the Act and it may open a window for other projects, which are stuck and the same model can be followed,” said Kumar.

Paritosh Goel, managing partner, Urbanac Building Technologies, said, “Strengthening the confidence of all the investors and buyers, our priority will be to implement the approved project rehabilitation plan as soon as possible and proceed with the construction work.”

Sandeep Sahni, chairman of Solutrean Building Technology Limited, said, “This is the first such acquisition in the district and we want to assure the existing allottees that we will take every step for the betterment of the project. We will soon start the project site, once the remaining formalities of the UPRERA are completed. We will set up the office, rename the project, and begin the construction work soon after the approval of the new map.”