Connect with us

Guest Column

U.P. RERA authorizes Elegant Splendour promoter to complete the  remaining construction work under Section 8, RERA 

Gautambudh Nagar/Lucknow: U.P. RERA, authorized the existing and new promoter jointly to undertake the completion of the remaining development and construction work of “Elegant Splendour” project with consent of more than 50 per cent allottees in a time-bound manner and complete it by March 2026

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% 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.

Elegant Splendour Phase 1 and Phase 3 have a total 640 residential units and only 211 units have been sold. Hence, 429 units are yet to be sold. As per the estimate, a sum of Rs. 239.10 cr can be raised from the unsold units of the project and Rs. 20.69 cr is due from the existing allottees. Thus, the total cash flow in the project is Rs. 260.06 cr and the estimated cost to complete the project is about Rs. 219.69 cr in various heads. 

Whereas 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:

– The promoter will deposit Rs. 12.50 cr upfront capital in next 3 months to pay revalidation fee of sanctioned map to GNIDA and infuse rest of the funds to commence construction immediately. Also, a separate account of the project shall be 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 in conformity with the relevant provisions of the RERA act and as per the relevant direction of the Authority. Both promoters will settle an existing loan of a financial institution from its own resources till February 2023 only.

Advertisement
  • 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, ‘Elegant Splendour Flat Buyers Welfare Association’.
  • The Authority will shift the project to the special category of projects under rehabilitation and monitor its progress quarterly. The Authority shall appoint a third party construction consultant to monitor the physical and financial progress of the project.
  • Taking into account the larger interest of allottees, it was decided that no allottee will be allowed to withdraw from the project till its completion. Similarly enforcement of the orders passed previously by the Authority will be kept on hold to ensure the uninterrupted flow of liquidity required for completion of the project within the stipulated time.

Rajive Kumar, Chairman, U.P. RERA said, “our prime objective is to protect the interests of all stakeholders of stuck projects, especially allottees. Elegant Splendour is the 15th project in the state wherein we have facilitated a new promoter to complete the remaining development work in understanding with the allottees of the project or

alternatively   association   of   allottees   who   are   approaching.   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.” 

Trending