The Real Estate (Regulation and Development) Act, 2016 seems to serve the purpose of protecting the interest of the home buyers. The RERA authorities are doing every possible effort to get the stuck projects delivered so that people can have their dream homes. But what if the project is stalled and builders do not have sufficient funds to complete the project. In such cases question arises that does RERA authorities have the power to take over the project?
Lately, in Uttar Pradesh, the RERA authority has decided to take over those projects which the builders failed to deliver as per the promised dates. The Authority first initiated auditing of each of the project and convened meeting with the builders to decide the future course of action but after analysing each and every aspect it was found that Builders are not likely to take the completion process ahead of the unfinished projects.
As the last opportunity of being head, the officials of RERA issued a show cause notice to these builders to submit their reply in next 15 days and if they do not file any reply then all the projects will be de-registered.
The Authority is of the opinion that after de-registering the projects they may opt for below-mentioned ways out to get the project completed:
- If the association shows interest to take up the project and they have required funds, then it will be handed over to the association.
- If the home buyer’s association is not interested, then the Authority will seek funds from the bank to complete the project.
- Raising of funds by selling floor area ratio and unsold land.
The list of the project’s that will be taken over by the UPRERA Authority are as follows:
- 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 22
- 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
- Intellicity’s Business Park in Greater Noida’s Techzone-IV;
Three out of the seven projects are commercial in which around 4000 investors have bought retail space and few have residential units, while other 4710 flats are yet to be delivered in the remaining four projects.
These all unfinished projects got the land in 2009-10 and were supposed to be delivered by 2013 or later. In August 2018, home-buyers filed a complaint and the authority started a trial to find out the ways to revive the projects and at last, they inferred that the builders of these project are not in a position to finish the project.
After all the discussion, we can sense that the RERA Authorities always concentrate on the workable and practical solutions which eventually will bring positive outcomes to the home-buyers.
Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.