Amid the ongoing slowdown in the real estate sector, more than 90 unfinished projects in Uttar Pradesh will be shut down, said officials of the UP Real Estate Regulatory Authority (UP-Rera) on Sunday.
UP-Rera is a quasi-judicial body formed in 2017 to safeguard the interest of this sector.
Promoters have submitted applications to cancel the registration of their respective projects on multiple grounds, including no demand for flat or plot, fund crisis, and delay in delivery, said the officials.
According to the rules, a promoter has to register the project with the UP-Rera and obtain the registration number before launching it. So far, 31 out of 91 projects -- three in Gautam Budh Nagar -- have been shut down, the officials said.
Promoters of these 91 projects had applied for cancellation of registration between January 2018 and July 2021, according to the UP-Rera.
“Once a promoter applies to cancel the registration number of a realty project, he has to adhere to some conditions, such as there should be no third-party interest, no investment by any homebuyer, and submission of an affidavit. If a promoter fulfils all the requisite conditions, we proceed with the cancellation of registration. As of now, 31 promoters cancelled registrations, and the remaining are pending,” said Rajive Kumar, chairman, UP-Rera.
Kumar, however, said that the real estate sector is witnessing a positive sentiment and the sales are picking up following the second wave of Covid-19. “Only 91 out of the total 3,000 registered projects want to cancel their registration. On an average, we are also registering 15-20 new projects in a month. This means that the sector in UP is reviving.”
{{/usCountry}}Kumar, however, said that the real estate sector is witnessing a positive sentiment and the sales are picking up following the second wave of Covid-19. “Only 91 out of the total 3,000 registered projects want to cancel their registration. On an average, we are also registering 15-20 new projects in a month. This means that the sector in UP is reviving.”
{{/usCountry}}“According to the process, after promoters file cancellation applications, we ask them to publish the same in newspapers so that the investors or homebuyers of those projects get an opportunity to file their objection pleas, if any. We proceed with the cancellation only after issues of buyers are settled amicably,” Kumar added.
There are 3,000 registered projects in the state, of which around 60% are in Noida, Greater Noida, Ghaziabad and the Yamuna Expressway area, said the regulator.
“Even most of the promoters of these 91 projects are from western UP cities, including Noida, Greater Noida, Ghaziabad, Agra, and Meerut,” said another official of UP-Rera, requesting anonymity.
RK Arora, president, National Real Estate Developers’ Association of India (Naredco), said, “The market is witnessing a financial crisis due to various reasons, including the Covid-19 pandemic and a dip in sales. As a result, the promoters want to withdraw their registrations.”
Sachin Kumar, a homebuyer from Noida, said, “The UP-Rera must ensure that buyers concerned should get a refund, with an interest, before registrations of these projects are cancelled.”