UP RERA directs authorities to start registration of projects outside the planning areas

The UP real estate regulator has asked authorities to start the registration of projects from outside the planning areas to make them accountable, in view of the rising number of complaints from such areas

The Uttar Pradesh real estate regulator has asked local authorities to start the registration process of realty projects under the Real Estate (Regulation and Development) Act (RERA), for making builders accountable and addressing rising complaints from buyers in the state. UP Real Estate Regulatory Authority chairman Rajive Kumar, in a statement, said the Authority had received about a 1,000 complaints with respect to projects and promoters from outside the planning areas, mainly from the districts of Lucknow and Barabanki. The complaints vary from non-implementation of the projects, to the promoter having run away with the money of the buyers, he said.

The RERA applies only to the real estate projects with area of 500 sq metres or more and with eight apartments or more in planning areas. “RERA cannot extend relief to such buyers, unless the project can be registered in RERA and invited the attention of the participating officers to the provisions of Section 3 of the RERA, wherein, a provision has been made that in order to protect the interest of the buyers, it can direct a promoter to register in RERA, a project outside planning area and that the provisions of RERA will apply to such a project, from the date of its registration in RERA,” he added.

See also: What is RERA and how will it impact the real estate industry and home buyers?

The UP RERA chief held a meeting at the RERA office in Greater Noida, to discuss the approval and regulation of layout plans of the real estate projects outside the planning areas. The meeting was attended by Anurag Srivastava, principal secretary of Panchayati Raj; Mahendra Prasad, secretary of industrial development and CEO LIDA; Preeti Shukla, secretary of panchayati raj; Ajai Chauhan, housing commissioner; Masoom Ali Sarvar, director of panchayati raj; MP Singh, secretary of Lucknow Development Authority, among others.

Kumar, however, clarified that a project can be registered in RERA, only if the layout plan of the project had been approved by the concerned local authority, which means a zila panchayat, in most of the cases. Anurag Sivastava, principal secretary, said in some of the zila panchayats the bye-laws relating to the approval of the projects have not been adopted so far. However, he assured to direct the districts concerned to adopt the bye-laws soon. “They will also work effectively to check the breaches of the sanctioned plans or the development of real estate projects without required approvals,” a statement said.

UP RERA issues show-cause notices to Ansal API over alleged fraud

The UP RERA has said that it has issued show-cause notices to Ansal API over alleged fraud and diversion of funds

April 2, 2019: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA), on April 1, 2019, said that it has issued show-cause notices to Ansal Properties and Infrastructure, following a report submitted by a forensic auditor that had investigated 91 projects of the company over the last three months, for financial misappropriation. In October 2018, the Authority ordered forensic audit in registered projects with a view to investigate into the affairs, especially the accounts of Ansal API to find out the possible diversion of funds, and causes of inordinate delays, among others.

The Authority had appointed Currie and Brown (C&B) for conducting the forensic audit, it said in a statement. “The auditor had submitted its report, where it has stated that under Ansal API, the projects have found to be in breach of RERA compliances, managing separate accounts, half-yearly project account audit and a possible diversion of over Rs 600 crores from the projects to other purposes,” the statement said.

Consequently, its four projects in Lucknow were finalised for notices. These projects are EWS/LIG-PKT 2-Sec K-SGC, Bliss Delight, Block 1, 2, 3 & 4, GH-2, Sec, Pocket-2, Sector-J, Sushant Golf City and Pocket 3 Sector A, Sushant Golf City. “A large number of complaints were filed against these projects before us, in respect of non-delivery of units/plots, failure to refund money advanced by buyers, violation of various approvals, etc. Further, some serious allegations of mismanagement, diversion of funds, etc., were also made by the complainants. Hence, this was needed to protect the interests of the allottee(s) and to identify the ways and means to ensure the requisite fund flow for the completion of the projects,” UP RERA chairman, Rajive Kumar said.

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The first of its kind action by RERA has been taken under Section 35 along with Section 7 (2), for violation of Section 4, 7 and 11 of the Real Estate (Regulation and Development) Act, 2016, the Authority said in a statement.

It would give the developer 30 days’ time to reply and deposit the amount in the concerned separate account, UP RERA member Balwinder Kumar said, adding “If the developer fails to respond, we might revoke the project registration with the Authority, impose penalties and other necessary restrictions.” Abrar Ahmed, UP RERA secretary, said the notices have been issued to Ansal API’s full-time directors Sushil Ansal, Pranav Ansal and managing director Anil Kumar.

Rs 65 lakhs in pending dues towards UP RERA, recovered from builders

The Gautam Buddh Nagar administration has recovered dues of Rs 65 lakhs, pending towards the Uttar Pradesh Real Estate Regulation Authority, from several builders including Supertech and Jaypee Group

January 18, 2019: The Gautam Buddh Nagar administration, on January 17, 2019, recovered Rs 65 lakhs in dues pending towards the Uttar Pradesh Real Estate Regulation Authority (RERA), officials said. Recovery certificates (RC) were issued against Supertech Private Limited, IVR Prime, Jaypee Group and UTC Private Limited, the administration officials said.

“Altogether Rs 65 lakhs were recovered in total, from the four private firms towards RCs issued by RERA,” it said in a statement. About Rs 28.58 lakhs from Supertech, Rs 19 lakhs from IVR Prime, Rs 4.16 lakhs from Jaypee and Rs 13.93 lakhs from UTC, were recovered in Dadri tehsil by revenue official Alok Pratap Singh and naib tehsildars Arti Yadav and Durgesh Singh, it said.

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According to the officials, when RCs are issued against pending dues to any group or entity, they are served with a notice of 15 days, asking them to clear the dues and only after this such actions follow. The RCs are first sent to the district administration, which is empowered by the law to take several actions, including the power to attach accounts and even the properties, to make the recovery from any defaulter, the officials said. The district administration had, on January 16, 2019, recovered Rs 1.28 crores from three builder’s groups and Rs one crore from two firms on January 14, 2019, on RCs issued against them, officials said.