UP RERA to recover over Rs 500 crore from developers by attaching asset for auction

New Delhi: Unable to recover compensation despite issuing notices to developers, the Uttar Pradesh Real Estate Regularity Authority (UP RERA) has started the process of collecting details of unsold inventory, vacant land of the project so that it can be auctioned.
UP RERA has so far issued about 2000 recovery certificates, the value of the amount in these recovery certificates is over Rs 600 crore. The recovery notices has been issued after developers was asked to pay delay compensation to the homebuyer. Only 15% of the amount against the recovery certificates has been realized and transferred to the home buyers.

UP RERA has prepared a list of top 10 defaulting promoters from the point-of-view of non-compliance of RERA.

Concerned District Magistrates have been requesting RERA to help them in the recovery of the dues by providing the details of the auctionable properties of these promoters.

“RERA has requested the development authorities under whose jurisdiction the projects or the properties of the promoters are located to make available the list of unsold inventories, the vacant land, and the unsold FAR in the projects, both ongoing and completed of these defaulting promoters,” said a RERA official.

RERA has also issued directions to the 25 top defaulting promoter to make information available to RERA.

These information include unsold inventory in all the projects, area of the vacant land (unutilized land) in each of the projects, unused FAR in each of the projects, details of the re-sale of the complainant’s unit along with the date and value of the resale.

The defaulted developers are also suppose to provide details of the the land/plots owned by the company on which a project is yet to be launched.

The information received from the authorities and the promoters will be passed on to concerned collectors for the realization of the amount payable to the allottees through the auction of those properties.

Uttar Pradesh RERA has scrutinized the projects whose date of completion given by the promoters, has lapsed and concerned promoters have neither uploaded the Completion Certificate or the Occupancy Certificate of the project on the website of UP RERA nor requested for extension of the registration of the project.

Such projects belong to both the government authorities as promoters and private promoters. RERA has sent details of such projects to the concerned development authorities/industrial development authorities to provide the current status of these projects so that further necessary action to complete such projects or take penal action against such promoters can be initiated by RERA.