U.P. RERA authorizes Ajnara Le-Garden Phase-3 promoter to complete the remaining construction & development work

Gautambudh Nagar/Lucknow: U.P. RERA, under provisions of Section-8 of the RERA Act, authorized the existing promoter, Ajnara Realtech Pvt. Ltd., to undertake the completion of the remaining construction and development work of “Ajnara Le Garden Phase-3” project with consent of more than 50 per cent of its allottees in a time-bound manner and complete it in 24 months, by June 2025. 

As per the site inspection report, carried out on 20^th April 2022, the overall physical progress of the Ajnara Le Garden Phase-3 (UPRERAPRJ3852) was 35 per cent only in which 585 residential units are being developed in 4 towers. Presently, 476 units have been sold and 109 units are yet to be sold. As per the estimate, a sum of approx. Rs. 187.0 Cr. can be raised from the project which includes upfront contribution of Rs. 4.0 Cr. from the promoter, Rs. 112.0 Cr. receivables from the existing allottees and Rs. 71.0 Cr. to be raised by selling unsold units. On the other hand, the estimated cost to complete the project is about Rs. 186 Cr. in various heads. 

The entire permissible extension of registration, 1 year as per Section- 6 of RERA Act and another extension of 6 months due to COVID-19 pandemic, had been availed by the promoter and the registration of the project had lapsed on 29^th June 2022. Hence, keeping construction status in mind, only provisions of Section-8 of the RERA Act was permissible for completion of the stuck project.

The Authority has established a Project Management Division (PMD) in its NCR regional office at Gr Noida and the completion plan of the project submitted by the promoter with the written consent of more than 50 percent of their allottees through their registered association was thoroughly scrutinized through this division. The Authority, based on the report of its project management division, was satisfied that the completion plan as submitted by the promoter was worth accepting for the protection of the interest of the allottees and furtherance of the objects of the act.

The Authority accepted the completion plan submitted by the promoters, it placed following strict conditions so that the plan of the completion of the project is executed successfully: 

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• The promoter will deposit Rs. 4.0 Cr. upfront capital in next 3 months to commence construction immediately in a separate account of the project maintained in the name of the project and all the future receipts from the allottees of the project as also from project financers, if any, shall be deposited in this account. The money from this account will be utilized only for the purposes of construction and development of the project. Any kind of withdrawal will require approval of CA, engineer and architect of the project and annual audit will be accessible for all allottees.

• Under the supervision of U.P. RERA Chairman, the progress of the project will be monitored by the Project Advisory and Monitoring Committee (PAMC), assisted by Project Management Division (PMD), of U.P. RERA under the chairmanship of one of its members and comprising CEO of GNIDA along with Conciliation consultants, Finance controller, Technical advisor, specially appointed construction consultants and association of allottees. The Authority shall appoint a third party construction consultant to monitor the physical and financial progress of the project. 

• The Authority will review the progress of the projects every quarter to meet the proposed plan of completion. Non commitment from promoter may lead to withdrawal the order of Section-8 too. 

T. Venkatesh, Acting Chairman, U.P. RERA said, “our prime objective is to protect the interests of all stakeholders of stuck projects, especially allottees. Ajnara Le Garden Phase-3 is the 16^th project in the state wherein we have authorized the promoter to complete the remaining construction and development work in understanding with the allottees of the project. We are examining the possibility of facilitating the completion of some more such projects under enabling provisions of RERA Act to stimulate construction in the stuck projects to ensure possession to its allottees. Revival of stuck projects is one of the keys to the revival of the real estate sector and push delivery of units to the consumers.”