UP to waive penal interest on builders, for litigation-hit projects

The Uttar Pradesh government has decided to excuse builders from penal interest and other dues, for the period their project is stalled due to litigation, if they pass on this benefit to the home buyers

A decision to allow a ‘zero period’ benefit to builders, has been taken at a meeting of the Uttar Pradesh cabinet chaired by chief minister Yogi Adityanath, on December 3, 2019.

Under the benefit, builders will be exempted from shelling out the penal interest and other dues, if the housing project is stalled due to litigation, National Green Tribunal directions, or a delayed deed execution, provided they pass on this benefit to the home buyers. The ‘zero period’ policy will also apply, if a builder cannot start the project due to the absence of an approach road or the local authority’s failure to acquire land in time, industrial development minister Satish Mahana said.

The minister said the decision was taken, to protect the interest of home buyers, based on the recommendations of various committees and the UP Real Estate Regulatory Authority (RERA). The benefit will apply to builders who are set to provide homes to buyers by June 2021, Mahana said. The state government expected one lakh new homes to be constructed by that time.


UP RERA identifies 397 delayed projects in the NCR, summons promoters of 22 projects

The UP RERA has identified 397 projects in the National Capital Region, where the handing over of possession to buyers has been delayed and issued summons to the promoters of 22 projects

October 11, 2019: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has summoned the promoters of 22 projects in Ghaziabad, Noida and Greater Noida on October 23, 2019, over delays in handing over possession of properties to buyers, officials said, on October 10, 2019. The Authority has altogether identified 397 such projects in the National Capital Region and called 22 of them for a meeting at its Greater Noida office, they said.

“These are projects where compliance of the RERA court orders regarding possession, are not being followed. Their promoters have missed their deadlines to give possession to the complainants, as stated in their affidavits in the court,” UP RERA chairman Rajive Kumar said. In the first phase, 22 projects have been identified and their promoters have been called for a meeting with the secretary of UP RERA, Abrar Ahmed, on October 23, 2019, he said. Under Section 63 of the RERA, if their replies are deemed to be inappropriate, then, a penalty of 5% of the total project cost will be levied on them, Kumar said. The rest of the promoters will be called later on, regarding non-compliance of the court orders.


UP RERA settles 11 cases of builder-buyer conflict at its 8th ‘conciliation’ meeting

Sixteen cases of conflict between builders and buyers were taken up for hearing, during the eighth conciliation meeting of the Uttar Pradesh RERA, of which 11 were resolved, officials said

August 29, 2019: Sixteen cases of conflict between builders and buyers, over flat possession, were taken up for hearing during a conciliation meeting of the Uttar Pradesh RERA on August 28, 2019 and amicable solutions were reached in 11 of them, officials said. This was the eighth ‘Conciliation Forum Meeting’ of the National Capital Region, organised by the UP Real Estate Regulatory Authority (RERA), where the maximum cases taken up, were related to Supertech, they said.

In total, seven cases of Supertech, one each from APV Realty, Gaursons Promoters, Strategic Developers and Mahagun were amicably resolved, RERA said in a statement. “For three cases of Supertech and one case of Jaiprakash Associates, various options were suggested by the conciliator to consider and find a viable solution to resolve the matter,” RERA said. In one of the cases involving a complaint against Ajnara builders, the matter was referred back to the RERA court, according to the statement. The forum has so far received over 600 conciliation requests, RERA said.


UP RERA settles 11 cases of builder-buyer conflict at its 6th ‘conciliation’ meeting

Sixteen cases of conflict between builders and buyers over flat possession were taken up for hearing, during a conciliation meeting of the Uttar Pradesh RERA, officials said

July 22, 2019: During a meeting of the Uttar Pradesh Real Estate Regulatory Authority (RERA) on July 12, 2019, 20 cases, including those of Supertech and Jaiprakash Associates, were selected for hearing at the sixth ‘Conciliation Forum Meeting’ of the National Capital Region, officials said. “Out of those 20, 16 were heard and four were deferred to a future date, due to time constraints. Amicable solution was reached in 11 cases, after the buyers and builders were brought on the same table to discuss their problems,” NCR conciliator, UP RERA, RD Paliwal said.

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The cases heard included projects of Supertech (7), Jaiprakash Associates (3), Arihant Infra Realtors (1), UP Township Infrastructure (1), ATS Homes (1), Gaursons India (1), SVP Builders India (1) and one of another, he said. “In total, seven cases from Supertech, one from UP Township Infra and three from other promoters were amicably resolved. For other cases, dates for further hearing were given for speedy redressal,” he said. Expressing satisfaction over the proceedings, Paliwal said, “The promoters and buyers put forth their respective concerns during the meeting, which were resolved through healthy discussions.”

He said mostly the cases that come to the Conciliation Forum of RERA pertain to possession or compensation-related issues. Since February 2019, the Conciliation Forum (NCR) has heard 47 cases, out of which 26 cases have been successfully resolved, while 14 have been scheduled for hearing in future dates and seven referred back to RERA Court, according to an official statement.


UP RERA deregisters Unnati Fortune Holdings project Aranya Phase 3, 4 and 5

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has said that it has deregistered a private firm’s project valued at Rs 1,500 crores over severe financial irregularities, diversion and siphoning off funds, besides double allotment

May 28, 2019: In a first-of-its-kind order by RERA across states, the UP RERA, deregistered Unnati Fortune Holdings Ltd project Aranya Phase 3, 4 and 5 in Sector 119, it said in a statement. “The process after deregistration will commence in consultation with the state government,” it said, adding that the decision was taken after the promoter could not provide a satisfactory response to the deregistration notices before it. “UP RERA has found that in the project there have been severe financial irregularities, diversion and siphoning off funds and double allotment,” the authority said.

It said the project, valued at over Rs 1,500 crores, is spread over 72,594 sq metres and was started in 2007 but when an inspection team of RERA went to the site, it found that only four of the eight towers were ready for completion, while major construction work was pending in the others. “Moreover, the construction of the villas has not begun at all, according to the site inspection reports,” it added.

UP RERA chairman Rajive Kumar said the deregistration order was served based upon the information collected, site inspections made, complaints registered under RERA and non-compliance of the provision of RERA Act. “While the Authority had already given strict warnings almost three months ago, this decision was taken after we gave them ample amount of time to respond after repeated notices were issued to them. This step should be seen as a warning to others,” he said.

Earlier, the Authority had issued deregistration notices under Section 7 of the RERA Act to seven builders for failing to meet their commitments to buyers covering 14 projects and approximately 4,800 residential units, according to the statement. The developers who were served notices include Primrose Infratech for Primrose Ryne project, PSA Impex for Sampada Livia, MSA Developer for Circuit Heights, Greenbay Infrastructure for Greenbay Golf Homes & Golf Village, Intellicity Business Park for Intellicity project, Mist Direct Sales for Festival City Phase 1,2,3 and Unnati Fortune Holdings Ltd for the Aranya Phase 3,4,5.

UP RERA secretary Abrar Ahmed said that “After the deregistration, there are several options before the Authority, besides giving the first right of completion to buyers. If the buyers themselves are in a position to complete the project by pulling their finances together, the Authority will develop the mechanism to supervise that.”  The Authority said it has decided that if there is no progress in the completion of the projects; if the builder fails to deliver projects; fails to show his keenness to deliver flats; if the builder does not resume construction; is absconding or in jail, it will issue show-cause notices to deregister their projects.

The UP RERA has also sent notices to many developers over bad construction quality and project delays, according to the statement. Under the RERA Act 2016, Section 8 provides an indication that the Authority can provide a platform to take up stressed projects and bring them to completion. 


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


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

May 15, 2019: 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.

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.

See also: NGT slaps Rs 10-crore interim penalty on 3 Gurugram builders for violating environmental norms

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.

See also: Jaypee may lose Formula One land if it doesn’t clear Rs 108 crores in dues: Yamuna Expressway Authority

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.


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