News: Uttar Pradesh hopes to speed up realisation of RCs issued by RERA in next fiscal year-02-03-2022
Data up to January 2021 shows that in Uttar Pradesh, out of a total 2,177 RCs that were issued since the inception of Rera in 2018, only 353 were realised by district administrations.
GHAZIABAD: The state is hoping to speed up realisation of RCs (recovery certificates ) issued by Rera in favour of homebuyer s in the next fiscal year, beginning April, with the state government last December empowering district administrations to put up properties of errant developers for e-auction.
Since the state has been in election mode, its full implementation will begin once the next government takes office, officials said. Data up to January 2021 shows that in Uttar Pradesh, out of a total 2,177 RCs that were issued since the inception of Rera in 2018, only 353 were realised by district administrations. District administrations are enforcers of RC orders from Rera.
“There is a provision in Section 40 of the Real Estate (Regulation and Development) Act, 2016, which empowers district administrations to recover dues or arrears from erring developers on any UP-Rera bench order which has issued an RC. But it was brought to the notice of the government that there are many banks which, in order to recover dues from defaulter developers, e-auction their properties,” said Rajive Kumar, chairperson of the UPRera.
“In one of the meetings with the government, an idea came up that district administrations should also be vested with powers to e-auction properties of developers to recover dues of aggrieved homebuyers as it will be less cumbersome than the traditional method,” added Kumar. With voting in the seven-phase assembly polls nearing the final lap and results to be declared on March 10, UP-Rera hopes to see a speedier process of RC realisations once the next government is in place. “To prepare for this, we have asked all district administrations to share information on how many recovery certificates they have acted upon. We are also collecting data from across the state on how many recovery certificates have been issued,” Kumar said. Officials said realisations of recovery certificates were sluggish because they lacked the time and resources. The traditional process is also time-consuming because of paperwork that bidders are asked to put together and submit copies of physically to the administrations.
“While Rera is issuing a good number of recovery certificate orders, it is ultimately for the district administrations to implement it, so setting up a separate department or cell to deal with recovery certificates will not be a bad idea,” said Gaurav Gupta, joint secretary (NCR chapter) of realtors’ association Credai. Gupta agreed eauctions will speed up realisation of dues. According to the UP-Rera office, since its inception in 2018, it has received around 41,000 cases out of which about 34,000 have been disposed of.
