The regulatory authority has issued notices to the developers, giving them a last opportunity to submit their reply in the next 15 days.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has taken up the onus to finish construction of seven stuck housing projects in GB Nagar.
As per the report, the regulatory authority has issued notices to the developers of these seven projects, giving them a last opportunity to submit their reply in the next 15 days. If no response is evoked within the given time, the regulatory authority would de-register and take over the projects.
Speaking to City Spidey, a senior official with UP-RERA said, “Showcause notices have been served to the developers, but it’s too early to reach any conclusions. RERA will take over control only after the developers have failed to respond and projects have been de-registered.”
The move come after the real estate regulator conducted an investigation on the basis of complaints received from the homebuyers and found that developers were not in a position to finish the projects.
These seven projects include Aranya housing project in Noida Sector 119, Primrose Ryne in Greater Noida Sector Chi-V, Golf Homes and Golf Village on Yamuna Expressway, Circuit Heights on Yamuna Expressway, Sampada Livia in Greater Noida, Festival City in Noida Sector 143 and Business Park in Greater Noida Techzone-IV.
It has been heard that UP-RERA may also ask homebuyers’ associations to generate the required funds for completion of a project.
Annu Khan, president of Noida Extension Flat Owners and Members Association (NEFOMA), said, “It’s a good, but in most of the projects homebuyers have already paid up to 90 percent of their dues. If they are asked to pay more, it would be big burden on them. It may be alright for those who have paid less than 50 percent. But this approach might have negative fallout — what if builders start demanding the same?”
While Manish Kumar, a member of Noida Extension Flat Owners Welfare Association (NEFOWA) is of the view that if builder is unable to complete the project, the real estate regulator can invite the flat buyers. “It depends on certain conditions like whether the buyers association is registered under UP Apartment Act, and also if buyers are willing to take responsibility to generate funds to complete projects,” he added.
However, UP-RERA has also clearly stated that if buyers’ associations do not agree to take responsibility, it would seek funds from banks, or raise money by selling unsold land.