Thirteen more projects waiting to be complete under UP-RERA’s rehabilitation clause

August 6, 2022
Thirteen more projects waiting to be complete under UP-RERA's rehabilitation clause

NOIDA: Jaypee Greens Kalypso Court becoming the state’s first project to be guided by UP-Rera under the rehabilitation clause is a ray of hope for 13 other projects that are waiting for completion.

Twelve of those projects are in Noida and Ghaziabad. Another is in the state capital, Lucknow.

The latest two additions to this list were this year, both from Ghaziabad.

Last month, Rera said that it had authorised the builder to finish the work in Utopia Estate housing project in Dundahera.

In May, it allowed the promoter of the Vasundhara Grand project in Sector 15 to complete the stuck project. Both of these are scheduled to be completed by 2023-end.

“The successful completion of this project marks a new beginning in the post-Rera era where a project has been rehabilitated and nurtured towards completion by a regulatory authority. It is the first in line among 14 others that will be completed under the supervision and monitoring of UP-Rera,” Rajiv Kumar, chairman of the regulatory body, said on Friday.

“UP-Rera has been the frontrunner in the country in effectively using the provisions of Section 8 of the Rera Act for rehabilitating delayed and stalled projects. UP Rera took a focused approach and established a ‘Project Management Division’ to identify, advise and handhold promoters and allottee associations for completing real estate projects,” Kumar added.

Section 8 of the state’s Rera Act, which came into existence in 2016, can be implemented if the builder and at least 50% of the homebuyers approach the real estate regulator with a rehabilitation plan. Once it is brought in, the authority constitutes project advisory and monitoring committees to oversee the development work.

Progress is reviewed by these panels every quarter and efforts are made to remove any obstacles.

The terms and conditions, for builders and homebuyers, are to be followed dedicatedly to follow the timeline set by UP-Rera. Further, all parties have to ensure that economic resources are available.

Experts say it is a positive outcome to see a project finish under the authority’s watch, but also point out that the Act may not always have wide applicability. “In the case of Jaypee Greens Kalypso Court project in Sector 128, the three stakeholders — developer, homebuyers’ association and UP-Rera — were on the same page. This led to completion of the project. But not all stalled projects can be brought under the Act,” said Venkat Rao of the Intygrat law firm and a legal adviser to UP Rera.

“For Section 8 of the UP Rera Act to be invoked, it is mandatory that more than 50% of allottees and the developer agree to a rehabilitation plan. In many projects that are stuck, there are differences between the two parties and in this case the Act alone cannot come to rescue all stalled projects. This explains why only 14 projects could be brought under the ambit of Act until now,” he added.

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