The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has identified 115 projects that will be given a nine-month extension for completion, with the regulator monitoring the construction activity.
The authority had invited applications from developers along with an affidavit that it will complete the projects within the extended period of registration.
The developers had to submit requests along with a financial plan for completion of the projects.
Out of the total applications, 45 had already been granted extension.
The move is expected to provide relief to over 30,000 homebuyers who are awaiting delivery of flats.
“We are not giving blanket extensions this time but the projects that can be completed with a little push and support, are being identified. After receiving applications, we are conducting physical inspection and reviewing the financial status of the projects. The projects we feel are in the final stages of construction and can be completed in the next 9 months, are being given extension,” said Rajive Kumar, Chairman of UP RERA.
The projects where the original registration or extended registration is ending on or before December 31, 2021 in the NCR region—six months for non-NCR areas— are being given priority.
“Due to perceived uncertainty of livelihood, the construction workers went back to their home towns again. This has impacted the availability of manpower to a huge extent. The business of construction is labour intensive and slowdown of construction directly impacts the completion of projects and their expected handover dates also get pushed back,” said Santosh Agarwal, CFO and Executive Director, Alpha Corp.
Experts say that now many developers will be able to replan their handovers and adequate safeguards have been given for protecting customer rights.
RERA has said that in the case, the promoter is not in a position to complete the project within the additional period of extended registration, it would be required to enter into an agreement or MOU with the Association of Allottees (AOA).
Then they have to approach the authority for additional time to complete the project in accordance with the terms and conditions decided between the AOA and the promoter.
The authority, on receipt of such a joint request, will take an appropriate decision to authorize the promoter to complete the remaining work of the project as per the terms and conditions decided between them, subject to strict monitoring by the authority.
“We hope the UP RERA grants a general extension like the first wave instead of the conditional extension which will benefit more projects in the state. Also, the monitoring conditions imposed by the authority must be liberalised so as to ensure easy compliance,” said Siddharth Katyal, Director (Planning & Strategy), Omaxe.
Developers said that the lockdown of 2021 due to the second wave of COVID-19 pandemic, besides causing fund crunch, has also crippled the supply of manpower and raw materials in the real estate sector.