Gautambudh Nagar/Lucknow: U.P. RERA, with a view to protect the interests of the allottees of Ghaziabad based “Utopia Estate” housing project, authorized the promoter to undertake the completion of the remaining development and construction work of the project in a time-bound manner and complete it by December 2023 as per the consent, 95%, provided by the association of the allottees. Taking in to account the facts of the matter, the Authority noted that the project commenced in April 2016 but could not be completed by the promoter M/s Sai Adhiraj Land & Promoters Pvt. Ltd. within the period of registration i.e, March 28, 2022. Presently, as per the site inspection report, the overall physical progress of the project is only 40%. Both the promoter and the association of allottees had approached U.P. RERA to intervene in the matter and facilitate the remaining development work of the project under its close supervision so that the allottees of the project could get the possession of their unit in near future.
Since the promoter had already availed of the entire permissible extension of registration, 1 year as per section 6 of RERA Act and other extension due to Covid-19 pandemic, but on the account of validity of sanctioned maps till August 2022, the Authority considered the request from the promoter and association of allottees of the Utopia Estate project and decided to extend its support for completion of the project under the provisions of section 8 of the RERA Act read with Section 6, 7 and 37 of the act.
The Authority has established a project management division 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.
The Utopia Estate project being developed by M/s Sai Adhiraj Land & Promoters Pvt. Ltd. is located at Ansal Aquapolis Integrated Township, Dundahera in Ghaziabad. Out of 2 towers under this project, only D-13 is registered with U.P. RERA and, as per the promoter, no booking has been made in D-14 tower. Tower D-13 has 184 residential units and only 48 units have been sold. Hence, 136 units are yet to be sold. As per the estimate, a sum of Rs. 65 crores can be raised from the unsold units of the project and Rs. 8.14 crore is due from the existing allottees and further a sum of Rs. 4.14 cr can be raised through the sale of saleable parking area. Thus, the total cash flow in the project are Rs. 77.28 cr and the estimated cost to complete the project is about Rs. 35.47 crores. This shows the absolute viability of the project and can be completed by the promoter with the consent of the existing allottees.
Whereas the Authority accepted the completion plan submitted by the promoter, it placed following strict conditions so that the plan of the completion of the project is executed successfully:
- The promoter will deposit Rs. 3.0 cr upfront within 3 months from the date of the issue of the order i.e; by 22nd July 2022. 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.
- The progress of the project will be monitored by the Project advisory and monitoring committee PAMC of U.P. RERA under the chairmanship of one of its member and comprising Vice-Chairman of Ghaziabad Development Authority (GDA) along with Conciliation consultants, Finance controller, Technical advisor, specially appointed construction consultants and project management division (PMD) of U.P. RERA, and association of allottee.
- 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 in to 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.
The allottees of Utopia Estate were delighted with the prospect of getting early possession of their houses as per the rehabilitation of the project and appreciated the efforts of U.P. RERA in this regard.
Rajive Kumar, Chairman, U.P. RERA said, “our prime objective is to protect interests of all stakeholders of stuck projects especially allottees. Utopia Estate is the 14th project wherein the remaining development work is sought to be completed by the promoter 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 sector and to ensure completion of such projects leading to the revival of the sector and delivery of houses to the consumers.” He added that presently 13 projects in Gautam Buddha Nagar and Ghaziabad and 1 project in Lucknow are being rehabilitated through either the promoters or the association of allottees.
Rehabilitation of 14 projects in Uttar Pradesh is probably the first initiative of its kind by any state in the country under the provisions of RERA Act. Development of the remaining work and completion of such projects which are either stalled or the registration has lapsed or the registration has been revoked, is a path-breaking step. No doubt, rehabilitation of such stuck projects will protect the interests of home buyers and boost the confidence of stakeholders in the real estate sector of Uttar Pradesh.
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