UP-Rera hands over unfinished housing project on Yamuna Expressway to allottees

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera), on Saturday, decided to hand over an abandoned residential project in Greater Noida to its welfare

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera), on Saturday, decided to hand over an abandoned residential project in Greater Noida to its welfare association and appoint a construction consultant.

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Rajive Kumar, Chairman, UP-Rera, issued an order stating: “The registration of Project ‘Sampada Livia’ (UPRERAPRJ5855) of M/s PSA Impex Pvt. Ltd was revoked in September 2019 under Section 7 of Rera Act. The grounds were non-compliance under Section 4 and 11 of Rera Act, and Rule 14 of UP-Rera Rules, delays in development of the project, fraud and corrupt practices by the promoter and diversion of funds collected from the allottees.”

The project has 726 units, of which 355 units have been sold by the original promoter. A project advisory and monitoring committee was constituted on December 6, 2019, under the chairmanship of Balvinder Kumar, member, UP-Rera to oversee the development of the project under the provisions of Section 8 of the Rera Act.

UP-Rera issued a public notice on December 7, 2019, calling upon the association of allottees to submit a viable proposal for taking up the remaining development work of the project.

“SLB Welfare Association, the association of allottees of the project, comprising over 50% membership of allottees, submitted a proposal to take up the remaining development of the project.,”said Kumar.

“After a careful examination of the association’s proposal and the powers conferred under Section 8 of the Rera Act, the Authority has decided to give its approval on authorising the SLB Welfare Association to step in and complete the remaining development, along with the right to undertake the sale of unsold units for mobilising funds for the same,” said Kumar.

The action taken by UP-Rera is a monumental step towards completing stuck and abandoned projects in Gautam Budh Nagar. The order is estimated to benefit at least 355 allottees of the project.

“To ensure transparency and accountability, UP-Rera will be appointing a project management consultant to monitor the completion progress of the project,” said Kumar.

Dr Akansha Aggarwal, president SLB Welfare Association, said, “Several NOC of various departments have expired and also we will have to execute the builder-buyer agreements afresh and hire technical team and construction consultant. This process will take around six months. Thereafter, we will be able to start the construction and complete the project in 4 years in three phases. Presently only 10% of project is completed. Since 2015 there is no construction at site. The builder is in jail.”

The project has 10 towers having 25 floors each. Civil structure in six towers has been completed up to 6 to 8 floors. In one tower only basement has been dug up. Work on remaining three towers work is yet to start,” said Aggarwal.

“In our proposal submitted in January we had give cost of completion of project as ₹243.59 crores and estimated date of completion as February 4, 2024,” said Aggarwal.

The audit report by M/s Currie & Brown Pvt Ltd had reported diversion of funds of ₹47 crore by the builder. “This is breach of trust of allottees and amounts to a criminal offence,” said Abrar Ahmed, secretary, UP-Rera.

“The project is located on the Yamuna Expressway. Out of total 726 sanctioned flats, total saleable area is 10,22,790 square feet and out of which 46% or 4,72,495 square feet has already been sold by builder,”said Ahmed.

“Total receivable from sold and unsold units is about ₹233.50 crore and receivable from commercial units sale is ₹6.40 crore,” said Ahmed.

The association has to submit resolution by June 25 signed by more than 50% of allottees of the project.The Association will also have the freedom to determine the sale price of the unsold units and it can also renegotiate price with existing allottees.A representative of Sampda Livia representative said, “On getting the order copy, we will take legal opinion and challenge the order in front of higher authority.”