The Uttar Pradesh Real Estate Regulatory Authority (Rera) has warned of freezing the bank accounts of promoters who were absent from the review of lapsed real estate projects on March 15, 2023, and before.
Promoters who were absent from the review meeting of lapsed real estate projects on March 15, 2023 and before could face severe sanctions from the Uttar Pradesh Real Estate Regulatory Authority
The Uttar Pradesh Real Estate Regulatory Authority (Rera) has warned of freezing the bank accounts of promoters who were absent from the review of lapsed real estate projects on March 15, 2023, and before.
UP Rera has held many such meetings previously in order to take stock of such lapsed projects.
Allegedly, seven developers - Rudraksh Developers Private Limited, Skynet Infraventures Pvt. Ltd., SNG Developers Ltd etc have been regularly absent from such meetings.
Rajesh Kumar Tyagi, Secretary of the UP RERA, has stated that the bank accounts of the promoters of projects who are regularly absent from these review meetings may now be frozen.
UP Rera is also considering prohibiting a sale and purchase agreement (SPA) for such lapsed projects.
SPAs bind a buyer and seller to buy and sell products and services, respectively.
According to the real estate regulator, such promoters may also be prohibited from registering new projects.
“The project can be ordered to stop the sale as well as the purchase of units, In future, registration of new projects of such promoters may also be completely barred,“ he says.
Apparently, there are several such projects whose completion date has expired that the UP Rera is now reviewing.
Many promoters have not reported the completion of the projects, and nor have they submitted an application for extension of the completion date.
In the review meeting held on March 15, 2023, the UP Rera secretary said that arbitrariness of real estate promoters who are not following the RERA regulations properly, will not be allowed in the state.
"It is mandatory for all real estate promoters to comply with the RERA rules otherwise there will be no delay in taking strict action as per the rules by the Authority. UP RERA is continuously taking tough decisions against promoters who are insensitive to the interests of home buyers," the regulatory authority said.
As a general rule, the builder is responsible for obtaining an Occupancy Certificate and Completion Certificate from the issuing authority after the project has been completed.
A Completion Certificate (CC) certifies that a building has been constructed in accordance with city norms and master plans.
Before registering a property, homebuyers should ensure that the completion certificate and occupancy certificate are reviewed in all applicable cases.