The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has put forth a recommendation to the Uttar Pradesh government, proposing the de-linking of financial dues from the registration process of flats. This suggestion aims to provide a resolution to the predicament faced by over 200,000 homebuyers in Noida and Greater Noida who are unable to complete the registration of their properties. The UP-Rera conducted a comprehensive survey of stagnant and incomplete real estate projects in the region before submitting their recommendations to the state government, as reported by Hindustan Times.
The survey conducted by UP-Rera encompassed over 200 projects in Gautam Budh Nagar district. In response to the situation, the authority proposed the formulation of a practical policy capable of addressing the issues on a case-by-case basis. This initiative comes after the Uttar Pradesh government and the central government sought the assistance of UP-Rera following the authority’s refusal to issue occupancy certificates for completed projects until developers settle all outstanding financial dues. Given that a substantial number of realtors have pending dues, thousands of homebuyers have been forced to endure an extended wait spanning over a decade, consequently impeding the growth of the real estate sector.
The authorities in Noida and Greater Noida have encountered difficulties in collecting approximately ₹50,000 crore in dues from around 200 realtors. If the current deadlock persists, UP-Rera warns that neither the authority will be able to recover the dues nor will homebuyers be able to register their flats.
To address this critical issue, UP-Rera has suggested the de-linking of the registration process from the requirement of a no dues certificate, which is contingent upon clearing all financial obligations and obtaining a no objection certificate from the finance department of the relevant authority. This proposition aims to break the impasse by enabling the registration of flats without necessitating the clearance of outstanding financial dues by developers. Additionally, UP-Rera has proposed that authorities have the option to secure the personal assets and properties of realtors, apart from the project itself, as collateral to facilitate resolution of the deadlock and provide justice to the homebuyers.
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Recognizing the unique circumstances surrounding each project, UP-Rera emphasizes that a uniform policy cannot adequately address the issue at hand. Instead, the authority advocates for a case-by-case approach to tackle the crisis effectively. Economically viable projects could potentially be taken over by the authorities and entrusted to new developers for completion and delivery, while projects lacking such viability may require authorities to assume responsibility for completion. The ultimate objective is to ensure that homebuyers receive the justice they deserve.
Other recommendations put forth by UP-Rera include interest waivers for periods when construction was disrupted due to land disputes or legal issues, cancellation of land allocations in projects without third-party interests, and the re-auctioning of economically viable projects to invite new developers to complete and deliver them. In line with these efforts, the central government has formed a committee to explore alternative options.
Representatives from the Confederation of Real Estate Developers Association of India (CREDAI), a lobbying group for realtors, have expressed optimism following their meetings with UP-Rera, the central government committee, and the Uttar Pradesh government. They hope that the resolution of real estate sector issues will materialize once financial dues are de-linked, and the demanded interest waivers are granted.
Ritu Maheshwari, CEO of Noida and Greater Noida Authority, has confirmed discussions with UP-Rera and the central government concerning the issues faced by the real estate sector. The homebuyers are eagerly awaiting a practical solution from the state government and other relevant agencies, hoping that their concerns will be genuinely addressed.
The homebuyers have endured prolonged anticipation for a resolution, and they remain hopeful that the state government will approve and implement a policy that effectively addresses the challenges faced by each individual homebuyer.