News: UP RERA allows association of homebuyers to take over stuck project-06-06-2020
Updated On: Jun 06, 2020
UP RERA allows association of homebuyers to take over stuck project
The authority had revoked the registration of the project Sampada Livia after developer failed to complete it and diverted money collected from homebuyers. While 24 homebuyers moved RERA, an audit by consultant appointed by Greater Noida Industrial Development Authority revealed diversion of R 47 crore.
NEW DELHI: In an order that will help homebuyers of stuck projects, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has allowed homebuyers association to take over and compete the project. The authority had revoked the registration of the project Sampada Livia after developer failed to complete it and diverted money collected from homebuyers. While 24 homebuyers moved RERA, an audit by consultant appointed by Greater Noida Industrial Development Authority revealed diversion of R 47 crore. “After careful examination of the association’s proposal and the powers conferred under Section 8 of the RERA Act, the authority on 6th June 2020 has given its approval on authorizing the SLB welfare association to step in and complete the remaining development, along with the right to undertake sale of unsold units for mobilizing funds for the same,” UP RERA said in its order. The SLB welfare association, having 195 buyers as members, had submitted a detailed project report to revive the project and complete it by 2024. “The registration of project ‘SampadaLivia’ was revoked in September 2019 under Section 7 of RERA Act for Non-compliance under Section 4 and 11 of RERA Act, delay in development of the project, fraud and corrupt practices by the promoter and diversion of funds collected from the allottees,” UP RERA said. The project has 726 units, of which 355 units have been sold by the original promoter. The project has net positive cash flow of about R 5 crore. The association has been asked to submit a resolution with consent of 50% of the allottees to undertake the completion of remaining project. A project advisory and monitoring committee was constituted on 6th December 2019 to oversee the development of the project. UP RERA had issued a public notice on 7th December 2019 calling upon the association of allottees to submit a viable proposal for taking up the remaining development work of the project. “The action taken by UP RERA is a step towards completing stuck / abandoned projects in Gautam Budh Nagar. The order will benefit 355 allottees of the project. To ensure transparency and accountability, UPRERA will be appointing a construction consultant to monitor the completion progress of the project,” UP RERA said.
