The RERA has included the project Smapada Livia in the list of defaulters.
The Uttar Pradesh Real Estate Regulatory Authority’s (Greater Noida bench) move to deregister a stalled housing project, Sampada Livia in Greater Noida, came as a breather for nearly 350 homebuyers who had invested in the project.
The UP RERA has already included the project Smapada Livia in the list of defaulters. Following a series of complaints from the aggrieved flat buyers, the regulatory authority on Monday decided to de-register it. It has also suspended the developer’s bank account and has constituted a committee to revive the stalled project.
Cheering the move, the homebuyers said, “But for the decision, our hopes of getting flats had almost vanished due to uncertainty over the completion of project. The de-registration will now open new avenues.”
Vindicated by the move, Buyers’ association welcomed UP RERA’s decision saying it will lead to a win-win situation. The association has been protesting against the developer with regular intervals. Accusing the developer of misappropriating funds, they had urged the regulatory authority to act against him.
Pointing out that an inquiry against the developer was instituted in March, Anuradha Vyas, one of the homebuyers, said, “It took almost six months to de-register the project. The RERA did not get satisfactory answer from the builder after several rounds of meetings. Now that he is cooling his heels in jail, we would be looking to RERA and Greater Noida Authority for completion of the project and getting our flats.”
“In fact, many of us had demanded refund. But the situation was so bad that it was just not possible to get our money back. The RERA too had suggested that it won’t be easy to get the refund at that stage as the builder was in jail and had not even cleared authority’s land dues. Fearing of losing our hard earned money, we went with RERA’s suggestion to find a way to complete the project,” she added.
Pointing at the dubious nature of the deal, a homebuyer, who did not wish to be named, said, “In the beginning, the project was launched in the name of Kendriya Awas. Later, the flats were sold in the name of Sampada Livia. Many names were used to sell the flats.”
It also emerged that while the project is listed as Sampada Livia on UP-RERA’s website, it was named Altureo Residency at the site. The project plan was not uploaded on the website.
During an inspection, the RERA found that only 10 per cent of the work was done at the project. Construction was not carried out in the last two-and-a-half years.
On authority’s order, Currie & Brown conducted audit of the project and found that Rs 47 crore received from the homebuyers have been diverted by the company.
However, in April this year, co-developers told the UP-RERA that they have made a tie-up with Rudra Buildwell Construction and the building will be complete by 2020.
The UP-RERA, however, issued a showcause notice to the builder asking details of total number of homebuyers opted for exchange and refund. They also wanted to know about the people who have opted to stay with the project. They also demanded the construction plan and cash-flow plan needed to complete the project.
“It was proved that buyers’ money was diverted by developer. We believe the RERA and the authority would come with a final solution and the project would be completed by another builder. We succeeded to bring the reality of financial mismanagement by builder in front of everyone. But we have still a long way to go in order to get our flats,” said Akanksha Aggarwal, another homebuyer who also leads the homebuyers' association of the project.