UP Rera hands over stuck realty project to Noida authority after buyers refuse

NOIDA: The Uttar Pradesh Real Estate Regulatory Authority (UP Rera) has decided to hand over a stuck realty project – Festival City located in Sector 143 along the Noida Expressway – to the Noida authority after the promoter failed to deliver it

NOIDA: The Uttar Pradesh Real Estate Regulatory Authority (UP Rera) has decided to hand over a stuck realty project – Festival City located in Sector 143 along the Noida Expressway – to the Noida authority after the promoter failed to deliver it.

HT Image

“As per Section 8 of the Rera Act we can hand over stuck realty projects to the concerned development authority in case homebuyers refuse to take over, after the promoter has already failed to deliver the project. In the case of Festival City, the developer could not finish the project and the buyers’ association is also not interested in taking it up. Therefore, the Rera has decided to hand it over to the Noida authority,” said Rajive Kumar, chairman of the UP Rera.

The Festival City project is spread over 25 acres and has space for shops, offices and residential villas. It was launched in 2012 and supposed to be delivered by 2016, but the developer could only construct the civil structure of commercial space. Since March 2019, the UP Rera has been hearing a plea filed by homebuyers against the promoter without reaching to any conclusion. It had also offered the buyers’ association an opportunity to complete the project but the move failed to yield results.

“The buyers’ association can take over and finish if the realty project is at an advanced stage. Since this project needs a lot of construction work to finish, the buyers’ association is not interested in it. As per rules, the buyers’ association has first right of refusal to take over such a stuck project,” said Kumar.

Noida authority officer on special duty Rajesh Kumar said, “We will look into it once we receive instructions from Rera.”

Buyers said that they are not in a position to finish and deliver the project due to multiple reasons.

“We lack technical experience and expertise and do not have adequate finances to finish such a big project. In view of all these issues, we refused to accept the offer made by the Rera,” said a buyer.

As per RERA, the promoter required Rs380 crore to finish this project which had high-end residential villas. The promoter told Rera he invested around Rs160 crore out of the Rs380 crore and constructed steel pillars to build structures for the commercial project.

Bhasin Group promoter SS Bhasin, who was developing this project, is behind bars in connection with a fraud case.