The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) acting at the joint proposal of the A.S.G.I. Properties and ASG Apple 7 Buyers Association, authorised the builder for the completion of their stalled project Apple 7 in Ghaziabad under Section 8 read with 11 and 37 of RERA Act within 18 months.
The builder has been ordered to deposit an upfront amount of Rs 1 core in the separate account of the project. They must open a separate account for the project in a scheduled bank. The promoter has also been ordered deposit all its contribution towards the project, as agreed with the association and also all the money received from the allottees as per builder buyer agreements, existing and prospective, or any other funds from any other source, from time to time, in the separate account and the same utilize it only for the work relating to the construction and development of the project and/or any other expenditure directly related to the development, construction and completion of the project.
The authority 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, concerned bank/financial institution, the association and the construction consultant appointed by the authority as members for monthly monitoring of the project.
The development work of the project, comprising of 2 towers and 171 units, commenced in November 2014. The completion date of the project had lapsed in May 2018. Allottees of the project through their association approached the authority requesting to intervene 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 on various issues pertaining to the balance development work of the project.
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 (PMD) of the authority.
The PMD recommended to accept the joint proposal of the promoter and the allottees as being convincing and in the interest of the allottees. The project is cash surplus with probable receivables being Rs 40.75 crore.
The project has positive cash inflows and is also financially viable considering the balance receivables. The project can take up instantly with the infusing of promised capital of Rs 1 crore by the promoter and availability of construction material at site.
The promoter undertook 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.