The Uttar Pradesh Real Estate Regulatory Authority (RERA) has permitted the promoter of a Ghaziabad-based project to complete the remaining development and construction work by December 2023.
The Authority noted that the project - Utopia Estate - commenced in April 2016 but could not be completed by the promoter Sai Adhiraj Land & Promoters Pvt. Ltd. within the period of registration i.e, March 28, 2022.
"Presently, as per the site inspection report, the overall physical progress of the project is only 40 percent," U.P. RERA said in a statement.
It noted that both the promoter and the association of allottees had approached U.P. RERA to intervene in the matter and facilitate the remaining development work of the project.
The promoter had already availed of the entire permissible extension of registration of one year as per section 6 of the RERA Act and other extension due to Covid-19 pandemic, but since the sanctioned maps are valid till August 2022, the Authority considered the request from the promoter and association of allottees of the Utopia Estate project and decided to extend its support for completion of the project under the provisions of section 8 of the RERA Act read with Section 6, 7 and 37 of the Act, the authority said.
The completion plan of the project submitted by the promoter with the written consent of more than 50 percent of allottees through their registered association was thoroughly scrutinized by the project management division of the Authority.
“Our prime objective is to protect the interests of all stakeholders of stuck projects, especially allottees. Utopia Estate is the 14th project wherein the remaining development work is sought to be completed by the promoter in understanding with the allottees of the project or alternatively association of allottees. We are examining the possibility of facilitating the completion of some more such projects under enabling provisions of RERA Act to stimulate construction in the sector and to ensure completion of such projects leading to the revival of the sector and delivery of houses to the consumers,” said Rajive Kumar, chairman, UP RERA.
Currently, 13 projects in Gautam Buddha Nagar and Ghaziabad and one project in Lucknow are being rehabilitated through either the promoters or the association of allottees.
The Utopia Estate project being developed by Sai Adhiraj Land & Promoters Pvt. Ltd. is located at Ansal Aquapolis Integrated Township, Dundahera in Ghaziabad.
Of the two towers in this project, only D-13 is registered with U.P. RERA and, as per the promoter, no booking has been made in D-14 tower. Tower D-13 has 184 residential units and only 48 units have been sold. As many as 136 units are yet to be sold.
As per an estimate, a sum of Rs 65 crore can be raised from the unsold units of the project and Rs 8.14 crore is due from the existing allottees. A sum of Rs 4.14 crore can be raised through the sale of saleable parking area. Thus, the total cash flows in the project are Rs 77.28 crore and the estimated cost to complete the project is about Rs 35.47 crore, the statement noted.
“This shows the absolute viability of the project and can be completed by the promoter with the consent of the existing allottees," it added.
The promoter will deposit Rs 3 crore upfront within three months from the date of the issue of the order. A separate escrow account for the project will be maintained.
The progress of the project will be monitored by the Project Advisory and Monitoring Committee (PAMC) of U.P. RERA under the chairmanship of one of its member and comprise the vice chairman of Ghaziabad Development Authority (GDA) along with conciliation consultants, finance controller, technical advisor, specially appointed construction consultants and project management division (PMD) of U.P. RERA, and association of allottees, the statement said.
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