Moneycontrol PRO

UP RERA orders erring developers to refund buyers in instalments

UP RERA holds discussions with five defaulting realtors; developers to give possession within three to six months

UP RERA also asked erring developers to give details of properties that can be auctioned

UP RERA also asked erring developers to give details of properties that can be auctioned

Uttar Pradesh Real Estate Regulatory Authority (UP RERA) on August 18 asked five of the 25 defaulting real estate developers, against whom recovery certificates had been issued, to refund the amount in instalments to homebuyers, top UP RERA officials told Moneycontrol.

The erring developers have also been asked to provide details of the properties that can be auctioned to recover the amount due to buyers, the officials said.

“These developers have defaulted in giving possession to buyers against RERA orders. We have asked them to undertake a special drive to comply with the orders and also refund the amount in instalments in view of the cash crunch. They have also been asked to provide details of properties that can be auctioned to recover the amount due to buyers,” UP RERA member Balwinder Kumar told Moneycontrol.

Supertech Group has assured the authority that it would give possession to 100 homebuyers every month, and hand over all remaining units within six months.

Logix Group has said it would give possession of remaining units within three months.

Close

UP RERA would decide on the penalty to be imposed in case the developers fail to comply. It intends holding meetings with the remaining 20 developers in the next three days, Kumar said.

The issue of occupation certificate and completion certificates not getting uploaded on the UP RERA website was also discussed. “We have readied a separate format and asked the developers to upload the entire information in that format,” he said.

UP RERA has identified 25 builders who have defaulted in complying with its orders. Most of these orders have been issued over the last two years. Most of the complaints received from homebuyers had to do with delay penalties and non-payment of amount due to buyers against the recovery certificates issued by UP RERA.

The defaulting developers have been asked to provide information on the unsold inventory in their projects, both ongoing and completed, with details of the units tower/block/pocket-wise; area of the vacant land (unutilised land) in each of the projects along with the location on the map; unused FAR in each of the projects; details of the re-sale of the complainant’s unit along with the date and value of the resale.

Details of the assets and properties of the real estate company, including the land/plots owned by the company on which a project has yet to be launched, has also been sought.

A recovery certificate is issued against a real estate company if it refuses to repay the amount for which it has defaulted as ordered by the court or a quasi-judicial body. The recovery amount is collected by the district administration.

UP RERA has also prepared a list of vacant, unencumbered properties lying with the developers. The developers have been asked to send the list of vacant properties which would then be auctioned with the help of the district magistrate and the amount recovered for homebuyers. “We hope to recover over Rs 500 crore from these properties,” Kumar said.

The authority has also looked into projects where the date of completion has lapsed, and the developers have not uploaded their completion certificates or the occupancy certificates on the UP RERA website.

UP RERA has so far issued about 2,000 recovery certificates, and the value of the amount in these recovery certificates is over Rs 600 crore. About 15 percent of the amount against the recovery certificates has been realized and transferred to the homebuyers.

Supertech Group claimed that out of the total 864 complaints against it in UP RERA, the company had settled with 334 complainants since the lifting of the lockdown by providing alternative flats or compensation.

“The company plans to settle the remaining 530 complaints by 100 cases per month and the all complaints will be settled within next six months,” RK Arora, chairman of Supertech Group said.
Vandana Ramnani
first published: Aug 18, 2020 09:26 pm
Sections
ISO 27001 - BSI Assurance Mark