In an attempt to protect the interests of homebuyers of the Elegant Splendour housing project in Greater Noida West in Gautam Budh Nagar, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has authorised the existing and new promoter to jointly complete the project by March 2026.
This is the 15th real estate project under rehabilitation to be thus sanctioned under Section 8 of RERA, as more than 50 percent of the allottees have given their consent.
The Authority noted that the Elegant Splendour Phase 1 and Elegant Splendour Phase 3 are two separate phases of the same project, Elegant Splendour.
Promoted by Elegant Infracon, the projects were registered under UPRERA on August 23, 2017, but were not completed within the registration period. The registration of Phase 1 and Phase 3 lapsed on September 3, 2019, and August 29, 2022, respectively, the Noida Authority said in a statement.
Per the site inspection carried out on October 22, 2022, the overall progress of Phase 1 is 65-70 percent, and that of Phase 3 is 10 percent only, the Authority noted.
Both the promoter and the Elegant Splendour Flat Buyers Welfare Association had requested UPRERA's intervention in the matter.
Elegant Infracon informed the Authority that it had entered into a joint development agreement (JDA) with Floral Realtech for the completion of both phases. Phase 1 is to be completed by 2023 and handed over to the allottees, while Phase 3 is to be completed by March 2026.
Elegant Splendour Phase 1 and Phase 3 have 640 residential units of which only 211 have been sold so far.
Per estimates, a sum of Rs 239.10 crore can be raised from the 429 unsold units of the project, while Rs 20.69 crore is due from existing allottees. Thus, the total cash that may be raised is Rs 260.06 crore, while the estimated cost to complete the project is about Rs 219.69 crore. This demonstrates the financial viability of the project, a UPRERA statement said.
“The promoter will deposit Rs 12.50 crore within the next three months. This will be for the revalidation fee as also the funds required to kickstart construction immediately,” the statement said.
It added that separate accounts will be maintained for the project, and all future receipts from the allottees as also from financers, if any, shall be deposited in this account.
The money from this account will be utilised only for the purposes of construction of the project in conformity with the relevant provisions of the RERA Act and as per the directions of the Authority. Both promoters will settle any existing loans from their own resources, the Authority has said.
Rajive Kumar, Chairman, UPRERA, said that the prime objective was to protect the interests of all stakeholders of stuck projects, especially the allottees.
He said that Elegant Splendour was the 15th project in the state where a new promoter has been roped in to complete the pending construction, in consultation with the allottees of the project.
“We are examining the possibility of facilitating the completion of some more such projects under enabling provisions of the RERA Act, to ensure possession to allottees. Revival of stuck projects is one of the keys to the revival of the real estate sector,” said Kumar.
He added that currently nine projects in Gautam Budh Nagar, five in Ghaziabad and one in Lucknow are being rehabilitated in this manner.
The Authority has said that after restarting construction at the project, the promoter will urge the allottees to deposit 80 percent of the value of their flats to ensure the contribution of each party towards uninterrupted construction.
UPRERA has also established a project management division (PMD) in its NCR regional office at Greater Noida. The progress of the project will be monitored by the Project Advisory and Monitoring Committee (PAMC), assisted by the PMD.
The statement also said that the project will be shifted to the special category of projects under rehabilitation, and the UPRERA will monitor its progress quarterly. The Authority will appoint a third-party construction consultant to monitor the physical and financial progress of the project, it added.
The authority also stressed that taking into account the larger interest of allottees, it was decided that no allottee would be allowed to withdraw from the project till its completion.
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