UP Developers Demand Extension to Complete Projects
<span style="font-weight: 400;">Real estate developers have requested the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) to grant them an additional 12 months to complete projects and comply with various RERA orders as a result of the second wave of Covid-19 cases.</span> <span style="f
Published -
Jul 6, 2021 4:03 AM
Real estate developers have requested the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) to grant them an additional 12 months to complete projects and comply with various RERA orders as a result of the second wave of Covid-19 cases. The developers raised their grievances and made various demands in a webinar meeting on 2nd June, presided over by the Chairman of UP-RERA and attended by all Members of RERA, as well as NAREDCO-UP office bearers. The meeting was held to ensure the smooth execution of real estate projects and the delivery of units to allottees. NAREDCO-UP was represented by RK Arora, Chairman-Supertech Group and President of the body, as well as Rakesh Yadav, Vice President, NAREDCO and Chairman, Antriksh Group, and other members. "The developers requested a variety of relief measures to alleviate the hardship caused by Covid-19 and the government's prolonged lockdown," said RK Arora. The developers demanded an additional 12 months for project completion as well as compliance with various RERA orders, claiming that the 6 months allowed in the first wave of Covid-19 is insufficient in light of the severe liquidity crisis caused by the prolonged pandemic. The developers also requested that the recovery proceedings for non-compliance with orders be delayed for another year, with no further refund orders issued during that time. The developers also urged RERA to work collaboratively with the state government to revise the Zero Period GO dated December 5, 2019, and remove the clause that requires projects to be completed by December 20, 2021, in order to be eligible for the zero-period benefit. The Developers' Association also raised the issue of RERA issuing incorrect refund orders even though flats are ready for occupancy, demanding that such refund orders be revoked and complainants advised to take possession. Furthermore, R/Cs have been issued in some cases where customers had taken loans from banks and NBFCs, and the charge on those flats is still active. The issue of issuing R/Cs in subvention cases where allottees have already taken interest from developers has also been raised. Developers urged RERA to rescind such erroneous orders. Developers have requested RERA to issue strict instructions to defaulting banks, citing financial hardship caused by banks refusing to release funds held in 70 per cent Rera Escrow Accounts for construction purposes. Rakesh Yadav urged RERA to invoke Section 19 of the RERA Act against allottees who have failed to make payments and hold them accountable in the same way that developers are. The UP-RERA Chairman and Members further discussed and comprehended the situation, promising to investigate and do everything possible.