Promoters of unregistered ongoing projects have been given the last opportunity by UP Real Estate Regulatory Authority (UPRERA) to register by paying a hefty fine till January next year or be ready to face action.
“Promoters who have not registered their ongoing projects can apply by paying the required project registration fee along with two times its amount as a penalty by December 31 and four times the fine by January 30, 2019, or be ready to face the consequences,” said UPRERA chairman Rajive Kumar.
Following complaints from home-buyers that some realtors had obtained the RERA registration by manipulating records and documents, the authority has decided not to grant ‘instant registration’ for new projects. “A project would now be issued a registration number only after proper scrutiny of the documents and necessary clearances, which may take about a month’s time,” said Kumar in a five-page order issued on Wednesday to set the record straight on the process.
A fact check on the registered projects revealed that majority of the realtors were not updating details and information related to their projects progress – a mandatory exercise, which they are supposed to undertake every three months. Furnishing information on the number of units sold, bookings received and registries executed and money received etc after each quarter is mandatory upon promoters under RERA. The regulator has now decided to act tough with those who do not update their records and impose a fine of ₹10,000 for each quarter delay and initiate proceedings for cancelling the registration if such lapses reoccur.
{{/usCountry}}A fact check on the registered projects revealed that majority of the realtors were not updating details and information related to their projects progress – a mandatory exercise, which they are supposed to undertake every three months. Furnishing information on the number of units sold, bookings received and registries executed and money received etc after each quarter is mandatory upon promoters under RERA. The regulator has now decided to act tough with those who do not update their records and impose a fine of ₹10,000 for each quarter delay and initiate proceedings for cancelling the registration if such lapses reoccur.
{{/usCountry}}In fact, the limited-time facility to edit/update project details on UPRERA portal was first introduced in May this year, following complaints that developers were hoodwinking home-buyers by giving them one project deadline and UPRERA another to avoid penalty on delay in project delivery.
It was pointed out by those who have booked plots/flats in projects in Lucknow and across state that their builders had committed to handing over the possession of apartments, say in 2017 or 2018. However, during RERA registration, these developers have shown the date of possession as 2022-24. By taking away the edit facility from promoters after the expiry of the deadline, the officials felt that they (promoters) would no longer be able to push back the date of delivery of flats to buyers.
“The RERA, which came into effect all over the country on May 1, 2017, has six rules to ensure timely possession of properties. Developers registering projects with the UPRERA are mandated to declare the delivery date of projects. There are penalties if they delay beyond the date submitted,” says Abrar Ahmed, secretary UPRERA.
He said of the total 2,400 projects registered with the authority, 2012 were ongoing and remaining 388 were new projects. Of the 1,971 promoters/developers who had deposited project editing fee, only 670 had completed the process and 1,132 had done so partially. While 169 promoters did not do so after depositing the required edit fee, 429 did not even avail the facility, he said.