UP RERA permits promoter to complete stuck housing project in Ghaziabad

In an attempt to protect the interests of homebuyers of the Vasundhara Grand housing project in Ghaziabad, UP RERA has authorised the promoter to undertake the completion of the remaining development and construction work of the project in a time bound manner and complete it by May 2023.

RERA stands for Real Estate Regulatory Authority.

This is the 13th real estate project under rehabilitation to achieve completion under Section 8 of RERA. The association of the allottees has given its consent for the project.

The project commenced in the year 2015 but could not be completed by the promoter M/s Nandini Buildhome Consortium Pvt. Ltd. within the period of registration i.e, December 16, 2020. As per the site inspection report, the project is only 82% complete, the Authority noted.

The project is located at Sector-15, Vasundhara Yojna in Ghaziabad. Out of 320 residential units in two towers and seven commercial units of the project, 244 residential and 1 commercial unit have already been sold.

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The promoter has been asked to deposit Rs 25 lakh upfront within 15 days from the date of the issue of the order. Also, a separate escrow account will have to be maintained for the project. The money from this account will be utilised only for the purposes of the construction and development of the project.

As per the estimate, a sum of Rs 148.40 crore can be raised from the project which includes Rs 66.58 crore from the existing allottees, and further a sum of Rs 81.81 crore which can be raised through the sale of unsold units, the UP RERA said further.

The estimated cost to complete the project is about Rs 67 crore.

The progress of the project will be monitored by the Project advisory and monitoring committee PAMC of UP RERA under the chairmanship of one of its members and comprising 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 UP RERA, and association of allottees, UP RERA said.

The Authority will shift the project to the special category of projects under rehabilitation and monitor its progress quarterly.

“We are striving to protect the interests of all stakeholders of stuck projects, especially allottees. Vasundhara Grand is the 13th 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 who are approaching. 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.

Presently, 12 projects in Gautam Buddha Nagar and Ghaziabad and 1 project in Lucknow are being rehabilitated through either the promoters or the association of allottees.

Taking into account the larger interest of allottees, it was decided that no allottee will be allowed to withdraw from the project till its completion. Similarly, enforcement of the orders passed previously by the Authority will be kept on hold to ensure the uninterrupted flow of liquidity required for completion of the project within the stipulated time, it said.

The RERA Act clearly states that “Upon lapse of registration or on the revocation of registration under this Act, the Authority, may consult the appropriate government to take such action as it may deem fit including the carrying out of the remaining development works by a competent authority or by the association of allottees or in any other manner, as may be determined by the Authority".

UP RERA had laid down terms and conditions for both promoters and allottees to ensure the availability of economic resources in these projects and to undertake time-bound development of work. Project advisory and monitoring committees have been constituted to see that the development work in these projects goes on unabated.