Uttar Pradesh RERA on June 22 said that it had cancelled the registration of three real estate projects located in Ghaziabad following complaints from buyers that the promoter had violated the agreement/contract and there was a delay in construction. The realtor’s bank accounts have also been frozen to prevent any transactions relating to the projects.
The registrations of Antriksh Sanskriti Phase-2, Antriksh Sanskriti Phase-3 and Raksha Vigyaan Sanskriti Phase-2 have been cancelled and proceedings initiated under RERA's Section 8, the real estate regulatory authority said.
The Authority said that the promoters have violated the RERA Act, UP RERA Rules, and the orders passed by the Authority, which led to non-completion of the project, blocked its development and put the investment of the allottees at risk.
Keeping the interests of the allottees and other stakeholders in mind, UP RERA has decided to cancel the registration of all the three projects and proceed further under Section- 8 of the RERA Act to complete the remaining construction and development work.
Section 8 of 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. Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works".
There are clear provisions in RERA under which the Authority also has the power to take away the project from a particular developer and assign it to another agency to complete it.
The promoters Antriksh Realtek Pvt Ltd and Raksha Vigyaan Karmchaari Sahkaari Aawas Samiti Ltd are restricted from accessing the website of UP RERA in relation to these projects and they are now specified in the list of ‘defaulters,’ UPRERA Authority said in its order.
This information has been conveyed to RERA offices of other states and UTs. It has been decided by the Authority to freeze bank accounts of projects to prevent any kind of transactions related to the project, the order said.
A Project Advisory and Monitoring Committee (PAMC) has been constituted under the chairmanship of Kalpana Mishra, a member of the Authority, for drawing up a proposal to take further action to complete the remaining development works of the three projects under Section-8 of RERA Act.
Other members of the committee will include vice chairman of Ghaziabad Development Authority (GDA) along with the technical advisor, conciliation consultant, auditor of UP RERA as well as the concerned financial institutions and the association of allottees of the project. Expert assistance will be provided to the committee by the Project Management Division (PMD) of UP RERA to ensure the completion of the project.
Multiple complaints were lodged by the allottees of two projects of Antriksh Realtek Pvt Ltd. - Antariksh Sanskriti Phase-2 (UPRERAPRJ10928) and Antariksh Sanskriti Phase-3 (UPRERAPRJ11055) and a project of Raksha Vigyan Karmacharis Sahkaari Samiti Ltd, Raksha Vigyan Sanskriti Phase-2 (UPRERAPRJ11527) with the Authority under section-31 of the RERA Act, alleging the violation of the agreement/contract with the promoter and delay in construction.
The construction and development work of the projects; Antriksh Sanskriti Phase-2, Antriksha Sanskriti Phase-3 and Raksha Vigyaan Sanskriti Phase-2, began in year 2015 and their completion dates are July 2022, July 2022 and June 2023 respectively.
According to the on-site verification report of projects received by UP RERA, the construction and development work has been achieved up to 40 percent in Antriksha Sanskriti Phase-2 and up to 30 percent in Antriksha Sanskriti Phase-3. Surprisingly, the construction and development work could not commence in Raksha Vigyaan Sanskriti Phase-2, the order noted.
The inspection report observed that construction work on the project site has been halted for many years and that the chances of completion of the projects are uncertain.
The promoter too has not uploaded details of the development plan of the project, the quarterly physical and financial progress reports and the sanctioned plan of a project on the RERA website. The validity of sanctioned plans of the projects has expired and the validated map has not been uploaded.
The promoter has also failed to deposit pending dues of the concerned development authority of the project. The project has been sealed by the development authority and no concrete effort has been made to restore construction, UPRERA noted.
As per the RERA Act, it is mandatory to upload the Audited Balance Sheet and REG-5 within six months after the end of each financial year, which has been violated along with the orders passed by the Authority. All these acts are in violation of Section-4 and 11 of RERA Act and Rule-3 and 14 of UP RERA Rules and cast serious doubt on the intention and efforts of the promoter to complete the project. These are contrary to the objectives of the RERA Act and the interests of the allottees, UPRERA noted in a statement.
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