UP RERA also asked erring developers to give details of properties that can be auctioned
In yet another case, the Uttar Pradesh Real Estate Regulatory Authority, acting on the joint proposal of the developer and the buyers' associations, has authorised the real estate developer to complete the stalled project Apple 7 in Ghaziabad under Section 8 read with 11 and 37 of RERA Act.
The developer, ASGI Properties Pvt Ltd, has been directed to deposit an upfront amount of Rs 1 crore in the separate account of the project.
In a meeting held earlier this week under the chairmanship of UPRERA’s Rajive Kumar, the Authority acting on the joint proposal of the ASGI Properties Pvt Ltd and ASG Apple 7 Buyers Association, authorised the developer to complete the stalled project within 18 months.
The development work of the project, comprising two towers and 171 units, commenced in November 2014. The completion date of the project had lapsed on May 22, 2018.
Allottees of the project through their association approached the Authority for its intervention and facilitate the completion of the project.
Subsequently, a series of meetings were held with the promoter and the association to understand the issues and to arrive at a consensus. The promoter submitted the consent of 56 of the 105 allottees of the project to its proposal for completing the remaining development work.
The proposal of the promoter and association was examined in the Project Management Division of the Authority. The PMD recommended to accept the joint proposal of the promoter and the allottees. The project is cash surplus with probable receivables being Rs 40.75 crore.
Prima facie, the project has positive cash inflows and is also financially viable considering the balance receivables, UP RERA said in a statement.
The project can take off instantly with the infusing of promised capital of Rs 1 crore by the promoter and availability of construction material at site, it said.
The promoter has undertaken to raise balance receivables from existing allottees of tower S2A in three installments of 18 percent every two months starting from June 2021 and the final installment of 46 percent on completion of tower in December 2021.
The demand for balance receivables from existing allottees of tower S2B will be raised in eight installments of 6.15 percent every two months starting June 2021 and the final installment of 50.8 percent will be raised on completion of tower in September 2022, the authority said.
The Authority has constituted a project advisory and monitoring committee under the chairmanship of Balvinder Kumar, member, UP RERA with vice chairman, Ghaziabad Development Authority, Finance Controller UP RERA, Technical Advisor UP RERA, Conciliation Consultant UP RERA, Consultant, Project Management Division UP RERA, Bank / Financial Institution concerned, the Association and the Construction Consultant appointed by the Authority as members for monthly monitoring of the project.
The Authority will review the progress of the project on a quarterly basis. The promoter shall open a separate account for the project in a scheduled bank which shall be updated on the webpage of the project under the relevant category, the Authority said.
In 2020, UPRERA had allowed Jaiprakash Associates' (JAL) proposal to complete the remaining four towers of Jaypee Kalypso Court (Phase-II) situated in Sector 128, Noida. In January this year, the Authority permitted Jaypee Associates Ltd to complete the stalled Jaypee Greens Knight Court project in Noida alongwith the association of allottees.
Section 8 of RERA empowers authorities to hand over the completion task to buyers' association.
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".