UP-Rera will take over and finish seven stuck real estate projects

The decision comes after the promoters of these seven projects failed to deliver flats as per promises made to the homebuyers. The promoters are either out of country or not turning up to take up the responsibility, officials said. This is the first time that Rera has taken this step to help buyers get their flats in the stuck projects, Balvinder Kumar, member of Rera, said.

In a first, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) on Friday decided to take over and finish construction of seven realty projects, which are stuck for a long time. The move will benefit thousands of homebuyers who have invested in these projects spread across Gautam Budh Nagar.

Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) on Friday decided to take over and finish construction of seven realty projects, which are stuck for a long time. (HT File Photo)

The decision comes after the promoters of these seven projects failed to deliver flats as per promises made to the homebuyers. The promoters are either out of country or not turning up to take up the responsibility, officials said.

This is the first time that Rera has taken this step to help buyers get their flats in the stuck projects, Balvinder Kumar, member of Rera, said.

The projects that will be taken over by Rera include Unnati Fortune’s Aranya in Noida’s Sector 119; Primrose Infratech’s Primrose Ryne in Greater Noida’s Sector Chi-V; Greenbay’s Golf Homes and Golf Village in Yamuna E-way’s Sector 22D; MSA Developers’ Circuit Heights in Yamuna E-way’s Sector 25; PSA Impex’s Sampada Livia in Greater Noida’s Sector Chi-V; Mist Direct Sales’ Festival City in Noida’s Sector 143 and Intellicity’s Business Park in Greater Noida’s Techzone-IV.

The seven builders had got the land for realty projects in 2009-10 and were supposed to deliver their projects by 2013 onwards to buyers. Some of them have partially constructed their projects and some are yet to lay the foundation of their buildings, Rera officials said.

“Homebuyers filed cases against these seven projects in August 2018 and we started the trial to explore options as to how the buyers can get justice and the builder can revive the project. Now, we have come to a conclusion that the promoters of these projects are not in a position to finish these projects and deliver,” Kumar said.

The real estate regulator first conducted an audit of each project, inspected the site and took meetings with the builders to seek solutions. But it realised that the developers are no more interested in finishing the projects. Therefore, it decided to take over the project.

Rera had to decide to take control of these projects because the promoters were not bothered to take responsibility, and the banks are no more interested in funding them, said officials.

“We have issued show cause notices to these seven promoters giving them last opportunity to submit their replies in the next 15 days. If they do not come up with satisfactory replies, then we will de-register the projects and take control of the management of each project. Subsequently, we will have the responsibility to finish the projects and deliver to homebuyers,” said Kumar.

The regulator can allow homebuyers’ associations to finish the projects if they wish and have required funds and action plan. “If the buyer association is not interested, we will seek funds from banks or raise funds by selling floor area ratio or selling unsold land if there is any. We will explore all possibilities available with us within legal frame work. Our motive is that homebuyers and investors in commercial projects get their flats/retail space,” Kumar said.

Three out of seven are commercial projects in which around 4,000 investors have bought retail space and some residential units. While there are 4,710 flats yet to be delivered in the remaining four realty projects. Promoters of these seven projects are not available for comments as either they are out of country or unreachable.