Moneycontrol
Get App
Last Updated : | Source: Moneycontrol.com

UP RERA facing hurdles of absconding builders, unregistered realty projects

As many as 100 real estate developers in NCR are untraceable and have submitted mobile numbers of their staff

Vandana Ramnani @vandanaramnani1

Uttar Pradesh Real Estate Regulatory Authority (UP RERA) may have received over 13,000 complaints and resolved 7,000 since it was set up last year, but it is facing some practical difficulties such as not being able to contact some defaulting real estate developers, who are on the run after having abandoned their projects.

“Contacting at least 10 percent to 15 percent builders, mostly small and upcoming, is proving to be difficult as those are on the run have abandoned their projects. They have not submitted their personal mobile numbers in our records, but shared numbers of their staff,” UP RERA member Balwinder Kumar told Moneycontrol.

He added that as many as 100 promoters are untraceable till date. “We are unable to ensure their presence in court and in most cases to make sure that buyers receive their refund. Of late, we have also started issuing notices in the newspapers. If they do not appear before the bench, we will impose a penalty, which would be as high as 10 percent of the total project cost,” he stated.

Close

There are also hundreds of promoters who have not uploaded their quarterly reports on the portal, Kumar says. "Over 400 real estate projects remain unregistered under UP RERA. Of these, as many as 300 are from NCR," he added.

Most of these projects are located in Ghaziabad, Greater Noida and Yamuna Expressway and in majority of cases the promoters are untraceable.

RERA applies to the real estate projects with area of 500 square metres or more and with eight apartments or more in planning areas. It came into effect from May 1, 2017 and was brought in to regulate the real estate sector and end the practice by real estate developers to divert funds collected by homebuyers to other projects or for land purchase.

vandana.ramnani@nw18.com

India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
First Published on May 21, 2019 11:32 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant