People who have bought flats in projects where the construction is stopped for more than a year in Noida, Greater Noida and Ghaziabad may soon get to see their projects being revived by a new developer.
Real Estate Regulatory Authority (Rera) of Uttar Pradesh has identified more than two dozen ‘stuck projects’ in the NCR towns of the state to deregister them and invite fresh tenders from developers to complete the construction.
The move will benefit more than 30,000 homebuyers, a top official said.
Unsold flats and nearby land will be used by the new promoter to generate money and complete the project, UP Rera chief Rajive Kumar said.
He said there is provision for this under Sections 7 and 8 of the Real Estate (Regulation and Development) Act, 2016. “Section 7 says if a project is stuck, then all the violation is brought to the notice of promoter,” .
“In case he is willing to take action to complete the project, we give him the opportunity and put a monitoring committee.”
In cases where original promoter is not in a position to complete the project, the Residents’ Welfare Association (RWA) is asked to come forward and if two third of them agrees, the authority starts the procedure to deregister the project under Section 8.
This provision was first exercised in May when Rera deregistered three phases of Unnati Fortune Holdings’ Aranya housing project in Noida.
Rera had found financial irregularities, diversion and siphoning of funds, and duplicate allotment of apartments in Aranya project, Kumar alleged. “This case will become a benchmark for such projects,” he said. “We had issued notice to 6-7 developer and the first case is with the appellate authority.”
On Monday, the authority deregistered PSA Impex’s Sampada Livia residential project in Greater Noida. According to Rera, there were around 750 units which were proposed in this project and no work has been done since 2018 on the site.
In March, the authority had issued deregistration notices to seven builders for failing to meet their commitments to buyers covering 14 projects and 4,800 residential units.
Developers who had been served notices included Primrose Infratech for Primrose Ryne project, PSA Impex for Sampada Livia, MSA Developer for Circuit Heights, Greenbay Infrastructure for Greenbay Golf Homes and Golf Village, Intellicity Business Park for Intellicity project, Mist Direct Sales for Festival City Phases 1, 2 and 3, and Unnati Fortune Holdings Ltd for the Aranya Phases 3, 4 and 5.