UP-Rera gives more time to realtors to finish stuck projects

Noida builders had urged UP-Rera to issue a notification postponing the implementation of old orders, including those related to compliance and registrations of housing projects.

The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera)has decided to postpone hearings of complaints till the nationwide lockdown ends and also to extend validity of registration of housing and other projects till December 2020 in view of the Covid-19 pandemic. However, the UP-Rera has not cancelled the coercive orders issued against builders in the past.

Developers welcomed the order extending registration of projects and postponing cases pending against developers till the end of the lockdown period. (HT file photo)

Noida builders had urged UP-Rera to issue a notification postponing the implementation of old orders, including those related to compliance and registrations of housing projects.

UP-Rera members took meetings via video conferencing on Monday and Tuesday to decide on builders’ demands for exemptions in view of the Covid-19 pandemic. Developers welcomed the order extending registration of projects and postponing cases pending against developers till the end of the lockdown period.

“We are happy that UP-Rera has allowed the extension of registration of projects and also given additional time for completion of projects. But it is yet to cancel the coercive orders issued in the past. We will communicate this matter again because due to a liquidity crisis, developers cannot honour refund orders during this time of crisis when everything is shut,” RK Arora, president, Uttar Pradesh chapter of National Real Estate Development council (NAREDCO), a builders’ group.

Developers had sought relief after the government on March 22 shut construction to contain spread of Covid-19.

“The authority has decided to extend by three months the date of completion of projects with earlier had a date of completion between March 15, 2020, and December 31, 2020.

The revised registration certificate of such projects will be issued separately and send to the promoters concerned. It also decided to defer the hearings of all complaints listed till May 3, 2020, to suitably date to be communicated to the parties later on.

It will conduct hearings of complaints through video conferencing after May 3 or whenever the lockdown conditions are relaxed. We will keep addressing other issues via video conferencing ahead,” Abrar Ahmed, secretary, UP-Rera, said.

Developers in Noida and Greater Noida Wednesday said they will not be able to resume construction at their respective housing projects because the government is yet to allow operations of manufacturing units, which fall in the municipal limits.

The government of India has allowed construction work to resume if the daily wage earners are staying at the site itself and also maintaining social distancing.

“The government is yet to order that manufacturing units, which make construction-related material such as plywood, dust, steel and cement, located in rural areas, become operational. Therefore, developers cannot get required material to resume construction. For example, a company that makes plywood in Noida is not allowed to operate as it is located in a municipal area. Also, the staff required to monitor construction, who do not stay at site, cannot visit the site. So construction cannot resume in the given conditions,” Arora said.

Experts said resuming construction in non-hot spot zones with restrictions will not help much.

“The move to start at least some of the construction activity on project sites, even with a limited workforce, is certainly welcome. That said, since many migrant workers had left for their villages after the lockdown announcement, we will have to wait and see how many are actually left to resume work. Migrant workers comprise at least 80% of the total 44 million workforce in the construction sector. As far as construction activity in non-hot spots is concerned, developers will need to focus on resuming construction on projects that are already nearing completion and have a completion deadline within 2020,” Anuj Puri, chairman, ANAROCK Property Consultants said.