Homebuyers set to take over Sampada Livia project as tribunal rules against promoter

The Uttar Pradesh real estate appellate tribunal on Tuesday rejected PSA Impex Private Limited’s appeal against the UP real estate regulatory authority’s (UP-Rera’s)

The Uttar Pradesh real estate appellate tribunal on Tuesday rejected PSA Impex Private Limited’s appeal against the UP real estate regulatory authority’s (UP-Rera’s) order of September 30, 2019 deregistering its Greater Noida housing project -- Sampada Livia -- and handing it over to the homebuyers’ association to finish construction and deliver the project.

HT Image

Homebuyers said they are happy with the verdict and said they will begin the process of hiring a contractor for the project.

PSA Impex had launched the project in 2011 with assurances that the flats would be delivered in 2014-15. The project was launched on 5 acres land and had planned for 10 towers with 24 floors each and a total of 726 units in Greater Noida’s sector Chi V.

When the developer failed to deliver, completing only 10% of the project till date, homebuyers under the Sampada Livia buyers’ (SLB) welfare association banner filed a plea in the UP-Rera in June, 2018. The same year, the developer’s chief executive officer (CEO) Diwakar Sharma, who was booked in several cases for cheating and fraud, among other, was jailed.

On September 30, 2019 the RERA put the developer into defaulters’ category and cancelled the registration of the project. On June 6, 2020 it allowed SLB welfare association to take over the project so that they could finish it. However, this could not take off as, on June 26, 2020, PSA Impex filed an appeal against the Rera order in the tribunal.

“... we don’t find any substance in the submissions of learned counsel for the appellant (promoter) on issue no. 5, hence rejected and issue is decided against the appellant,” read the order issued by the tribunal’s three-member bench headed by tribunal chairperson justice D K Arora. “In view of the aforesaid analysis, we are of the considered view that the impugned order dated 30.09.2019 passed by the regulatory authority under section 7 of the act of 2016 is well reasoned and speaking order. We further found that regulatory authority followed due procedure of law while passing the same and there is no illegality, infirmity or perversity in the impugned order. Accordingly, the appeal is dismissed.”

Homebuyers hope that they will finally get the justice after a long fight.

“It was our hard earn money; a few buyers had taken out money from their provident funds for their home. SLB welfare association will fight for justice till the end. We are ready to start the construction on site as soon as possible,” said Dr Akanksha Aggarwal president of Sampada Livia buyers’ welfare association.

As per the Greater Noida authority audit, the developer had sold 355 of the 726 units. It estimated that the unsold flats would go for ₹233.50 and unsold commercial space could rake in ₹6.4 crore.

Representatives of the promoter could not be reached for comment despite several attempts.

“We allowed homebuyers to take over the project because they can arrange funds and deliver the project. The reason is all buyers trust them and will pay remaining flat cost,” said Balvinder Kumar, member of UP-Rera.