Unnati Fortune’s Aranya, located in Noida’s Sector 119, has become the first housing project to be de-registered by the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera), a move that is likely to affect some 2,000 buyers who have been waiting for a period ranging between three and five years for their homes.
While Rera benches have taken several steps against defaulting builders across the country, this is perhaps the first time that a housing project has been de-registered in India. UP-Rera officials said this was the first such move under the new real estate law.
The regulatory authority de-registered Aranya phases 3, 4 and 5 under Section 7 of the Rera Act after the developer failed to come up with a satisfactory response to the notices before the UP bench. The project, which began in 2007, is valued over Rs 1,500 crore.
Officials said notices were served to the developer after UP-Rera detected severe financial irregularities and funds diversion by Unnati Fortune.
“The de-registration order was served based upon the information collected, inspections made of the site, complaints registered with UP-Rera and non-compliance of the provisions of the Rera Act,” said chairman Rajive Kumar.
“While they were already given strict warnings almost three months ago, this decision was taken after we gave them ample amount of time to respond after repeated notices were issued to them. This step should be seen as a warning to other builders as well,” he added.
Commenting on the next step, UP-Rera secretary Abrar Ahmed said after the de-registration, “There are several options before the Authority, besides giving the first right of completion to buyers. If the buyers themselves are in a position to complete the housing project by pulling their finances together, we will develop a mechanism to supervise that.”
“This is the first time such an initiative has been taken,” UP-Rera member Balwinder Kumar added.
Buyers said they looked forward to “possible completion” of the project. “Aranya phases 1 and 2 apartment buyers have completely paid up their money and the phases 3, 4 and 5 buyers have so far only paid up about 20% of the cost to the builder, so if a new developer is brought in, completion can be a possible option,” said Rajat Sharma, a homebuyer.
UP-Rera officials said they would issue more such show-cause notices if they found there is no progress made by the developer, if a builder fails to deliver projects, does not resume construction after a long delay, or is absconding or in jail. UP-Rera had in the past sent many notices to developers over construction quality and project delay.
Sharmila Bhowmick, The Times of India, Delhi/NCR