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Wednesday, Aug 21, 2019

‘Fund crunch’ stalls Unnati Fortune project Aranya again

This came to light during a conciliation meeting held at the office of the Uttar Pradesh real estate regulatory authority (UP Rera) in Greater Noida. Rera officials, however, said the project is viable and they will explore ways to complete it.

noida Updated: Mar 03, 2019 03:29 IST
Kapil Datta
Kapil Datta
Greater Noida
‘Fund crunch’ stalls Unnati Fortune project Aranya again. (Representative Image)
‘Fund crunch’ stalls Unnati Fortune project Aranya again. (Representative Image)(Getty Images/iStockphoto)
         

The revival plan of the Unnati Fortune’s housing project Aranya, located in Noida Sector 119, is unlikely to move forward in the near future as one of the co-developers on Friday said that the firm was unable to complete the project due to shortage of funds.

This came to light during a conciliation meeting held at the office of the Uttar Pradesh real estate regulatory authority (UP Rera) in Greater Noida. Rera officials, however, said the project is viable and they will explore ways to complete it.

As many as 79 complaints related to the Aranya project have been filed with UP Rera, till date. The first complaint with regards to the project was received on November 29, 2018.

Hemant Kumar, one of the buyers of the Aranya project, said, “Eight residential towers have been constructed with a skeletal structure. In four towers – 2, 3, 4 and 5 – the wall work and other works have been partially completed. The co-developer today informed that Rs 22 crores is required to complete the four towers and give possession. For the other four towers, more than Rs 50 crore is required, he added.”

RD Paliwal, UP Rera consultant and head of the conciliation committee, said on Friday, “The conciliation committee report will be submitted to UP Rera bench 2 which had initiated the conciliation process. The co-developer’s refusal may be due to other pending cases at the National Company Law Tribunal (NCLT).”

Briefing about the project revival chances, Paliwal said, “The project is viable for revival. Four residential towers have been constructed. A commercial space too has been constructed partially. The commercial space can be completed and sold by the co-developer. This will provide funds for construction of another four residential towers.”

Paliwal said that the authority can complete the project by itself and give possession to homebuyers the co-developer is unable to do so. “If no co-developer comes forward, we have the option to get the project completed through authority. The bench will decide which option to choose. The committee can only give suggestions,” he said.

Last week, the authority had held a meeting with Unnati group allottees, in which buyers had submitted an application for revival of their cases after NCLT’s stay on proceeding was vacated. At last week’s meeting, however, no representative of the builder or co-developer was present. “We were hopeful of a solution after the co-developer came to attend today’s meeting. All our hopes of the project getting revived were dashed after talking to him. It has put us in uncertainty again,” Kumar said.

The UP Rera bench 2 had listed 79 cases of the Unnati Fortune group for January 30 and 31 under abeyance before the NCLT’s stay order copy was produced before the bench. The authority had started the revival process last week.

Balvinder Kumar, member of the authority and head of UP Rera’s bench 2 said, “I am collecting details from the conciliation committee. I will discuss its revival plan and try to ensure that buyers get their homes.”

First Published: Mar 03, 2019 03:29 IST

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