This initiative by RERA will prove to be very fruitful to the homebuyers whose hard-earned money is stuck installed project wherein the builder is absconding or in jail.
The UP-RERA (greater Noida) has proposed to create a stress fund to complete such pending projects. The same shall be put before the board of Lucknow for deliberation and thereafter it shall be sent to the UP Government.
No suit or legal proceeding against the company can be commenced or continued against the company after the passing of the winding up order except with the permission of the Tribunal.
According to the sources, 591 complaints and 128 applications of buyers are pending with the regulatory authority. The authority shall issue notices with respect to pending complaints about hearing.
If the collection from allottees in a particular month is less than the installment due to be paid to the lender, the entire amount in the escrow account reportedly goes to lenders.
One of the burning issues since the implementation of the RERA act is, the overriding effect of the RERA Act over the builder-buyer agreement.
RERA has been specifically setup to regulate the real estate sector therefore one must approach RERA before approaching NCLT.
It’s been around 2 years of implementation of the RERA Act, various developers have failed to get their projects to register with their respective RERA Authorities.
The authorities of most of the states have passed numerous orders but none of them have been executed in reality. The orders remain on paper and developer/ promoters have not complied the order.
The high court upheld the decision of the Appellate tribunal by directing the builder to deposit the 50% of the refund amount as ordered by the authority in order to hear the plea.