UP districts may auction properties of defaulter builders to recover dues
In a virtual meeting held with the chief executive officers and vice-chairpersons of 15 development authorities on Friday, UP-Rera chairman Rajive Kumar asked the authorities to provide a list of all unsold inventories, vacant land, among others details of both completed and under-construction projects of the defaulters.Updated: Aug 16, 2020 03:14 IST
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has ordered development authorities in the state to furnish property details of all defaulting developers in their jurisdictions within 15 days. These will be passed onto the concerned district magistrates who can then auction the properties to recover homebuyers’ money from defaulting builders against whom recovery certificates have been issued, officials said.
In a virtual meeting held with the chief executive officers and vice-chairpersons of 15 development authorities on Friday, UP-Rera chairman Rajive Kumar asked the authorities to provide a list of all unsold inventories, vacant land, among others details of both completedand under-construction projects of the defaulters.
According to Rera chairman Rajive Kumar, the authority has till date issued nearly 2,000 recovery certificates, and the total amount to be recovered from defaulters is around Rs 600 crore. About 15 percent of the amount against these recovery certificates has been realised and transferred to homebuyers, he added. A recovery certificate is issued after an individual or firm refuses to pay the default amount as ordered by either a court or a quasi-judicial body. The recovery amount is collected the district administration.
UP-Rera has also identified 25 top defaulters in the state and asked them to provide these details by August 17.
“Rera has requested the development authorities under whose jurisdiction the projects or the properties of the defaulting promoters are located to make available the list of unsold inventories, vacant land, unsold FAR (floor area ratio) in all projects of these defaulting promoters,” Kumar said on Saturday.
“The concerned collectors/district magistrates have been requesting us (Rera) to help them in the recovery of the dues by providing them details of the defaulters’ properties that can be auctioned. Paying heed to their request, Rera has proceeded to take further measures in this regard,” he added.
Officials from development authorities including that of Noida, Greater Noida , Yamuna expressway, Lucknow, Ghaziabad, Meerut, Moradabad, Agra, Bareilly, Kanpur, Varanasi, Prayagraj, Gorakhpur, Jhansi and Hapur were present in Friday’s meeting.
“The chairman has directed the concerned authorities to provide the required information to Rera within 15 days. The information received will be passed on to concerned district magistrates for the realisation of the amount payable to the allottees through the auction of those properties,” said Abrar Ahmed, secretary, UP-Rera.
The Gautam Budh Nagar magistrate said the district administration will take necessary action against defaulters as per the law. “ I am waiting for the orders from the higher authorities. If we are asked to auction the properties, then such orders will be duly carried out,” said district’s collector and district magistrate Suhas LY.
The authority has also scrutinised projects whose date of completion have lapsed and concerned promoters have neither uploaded the completion certificate or the occupancy certificate of the projects on Rera’s website nor have requested an extension of the registration of the project.
These projects include those owned by both the government authorities and private promoters. The authority has sent the names of the promoters and their projects to the concerned development authorities/industrial development authorities and asked them to give details on their current status so that further action can be initiated by Rera.
UP-Rera has also prepared a list of top 10 defaulting promoters on the basis of their non-compliance with the authority’s orders. A total 3,850 orders, including 1,448 refund orders and 2,402 possession orders, and 667 recovery certificates have been issued against these promoters, said the authority.
“We have also issued directions to the 25 top defaulting promoters, including these 10 promoters, to make available all information available to us by August 17, 2020,”said Kumar