Rera to issue recovery notice to builders to retrieve Rs 300 crore to compensate flat owners

In July, the Uttar Pradesh chief minister Yogi Adityanath had assured homebuyers that the government is seriously working to address their grievances.

District administration of Gautam Budh Nagar plans to recover over Rs. 300 crore from various builders, officials said Wednesday. The administration will hold a meeting with all the tehsildars on Saturday to speed up the procedure of recovering money from builders by issuing recovery notices so the money can be returned to flat owners. A recovery notice is issued after an individual or firm refuses to pay the default amount.

For the year 2019-2020, officials have already received recovery certificates from the Rera to recover around Rs. 300 crore from various builders. (Sunil Ghosh / Hindustan Times)

“We have received recovery certificates from the Rera to the tune of around Rs. 300 crore. In the next few months, we expect to receive more recovery certificates from the Rera. We want to recover as much money as we can, so that flat buyers who have invested their hard-earned money and approached the court with hopes can be given some relief,” Munindra Nath Upadhayay, additional district magistrate, finance, said.

For the year 2018-2019, the finance department of the district administration recovered Rs. 103 crore, which included recovery from various stakeholders such as the excise, banks, stamp department, etc. apart from the builders. For the year 2019-2020, officials have already received recovery certificates from the Rera to recover around Rs. 300 crore from various builders.

Officials have recovered around Rs. 31 crore till now, of which Rs. 11 crore is to go to the Rera’s recovery amount.

“We have started the procedure already, but it is not an easy job, because builders don’t pay easily. We have been taking continuous action against defaulters but we are going intensify our action because our main aim is to provide relief to buyers so that their faith in the judiciary remains intact,” Upadhayay said.

In July, the Uttar Pradesh chief minister Yogi Adityanath had assured homebuyers that the government is seriously working to address their grievances. The CM had directed top officials of the three industrial authorities—the Noida, Greater Noida and Yamuna Expressway Industrial Development authorities—that they should ensure that the general public is assured that they are developing cities as per their needs.

The Rera started working in May 2016 in Uttar Pradesh to address homebuyers’ grievances.