With the aim of protecting the interests of allottees, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) under Section 15 of the RERA Act has approved a proposal to transfer the majority ‘rights and liabilities’ of ‘Oh My God’ project located at Gautam Budh Nagar from the erstwhile promoter, Baya Weaver Ltd, to the new promoter, Saya Cementation Ltd, jointly with the land owner, Alisa Infratech Pvt Ltd.
This is the third project in which rights and liabilities have been transferred to an eligible company willing to complete a stuck project.
Prior to this, the rights of the BizLife project was transferred to HSL Software Pvt Ltd, and it is now being developed as i-thum 62 in Gautam Budh Nagar. Another project named Kiara Residency is now being developed by Kiara Lifespaces Pvt Ltd, in Lucknow.
‘Oh My God’ is a commercial project spread across 18,890 square metres and located in Sector 129, Noida, near the Noida-Greater Noida Expressway.
Baya Weaver got the project off the ground in April 2015. It was proposed to complete it by February 2023, including six months extension on account of the COVID-19 pandemic.
Also Read: New promoter roped in to complete stuck housing project in Greater Noida
But on September 27, 2021, the land owner Alisa Infratech approached UPRERA for transfer of the project’s registration in its name citing defaults in completion timelines by Baya Weaver, the Authority noted.
Alisa Infratech also informed the Authority that it has decided to take over all assets and liabilities of the project, including responsibilities of existing allottees, a statement issued by UPRERA said on December 27.
Subsequently, Baya Weaver, in December 2021, approached the Authority and accepted its failure in completing the project, and non-repayment of the outstanding loan availed for the construction of the project.
“In order to protect the rights of its allottees, Baya Weaver Ltd requested for mutating the project in favour of the land owner, Alisa Infratech Pvt Ltd. Baya Weaver Ltd submitted consent of 510 out of 657 existing allottees, more than two-thirds, in January 2022 in support of the proposal. UPRERA found the above arrangement in favour of the completion of a stuck project and suitable as per the objectives of RERA Act. Hence, using its powers under Section 15 of the RERA Act, UPRERA decided to approve the proposal,” the statement said.
Also Read: UP RERA imposes penalty of Rs 1.39 crore on 13 real estate developers
Section 15 of the RERA Act has been quite relevant for stuck projects, as it eases the way for companies willing to take over and complete stuck projects.
The section says that the promoter shall not transfer or assign majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-thirds of the allottees and without prior written approval of the Authority.
The Authority said that now the project will be developed and completed by Saya Cementation and Alisa Infratech, jointly under the name Saya Status.
Now, both companies will comply with all the pending and forthcoming obligations under the RERA Act, as well as agreements for sale entered into by Baya Weaver with its allottees, the statement said.
Also Read: UP RERA registers 36 real estate projects worth Rs 3,600 crore in September
The statement said that Saya Cementation purchased 100 percent equity share capital of Baya Weaver and Alisa Infratech and other stakeholders and sellers related to the project.
In this way, both, Alisa Infratech and Baya Weaver became subsidiary companies of Saya Cementation, a group company of the Saya Group.
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