The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has unveiled a series of measures aimed at safeguarding the interests of homebuyers, particularly those affected by delays in housing projects in Noida and Greater Noida. These measures include the formation of a special cell, the implementation of stricter regulations to prevent fund diversion by real estate developers, and the digitization of housing land records in 13 major cities across the state, including Noida and Greater Noida. These actions are designed to reduce the likelihood of homebuyers falling victim to unscrupulous developers.
The decision to implement these measures comes in response to concerns raised by the Uttar Pradesh government and the new chairman of UP-Rera, Sanjay Bhoosareddy. They recognized that without stringent laws and regulations, homebuyers are vulnerable to exploitation in the real estate sector.
Since its establishment in 2017, UP-Rera has received a total of 50,900 complaints, with 43,930 of them successfully resolved. Notably, 52% of the resolved complaints are from the National Capital Region, underlining the urgency of addressing issues in this area.
Chairman Bhoosareddy emphasized the need for ongoing reforms to ensure transparency and accountability in handling complaints. The formation of a special cell and the recruitment of additional staff are part of this effort to provide timely justice to aggrieved buyers. UP-Rera is also developing new applications to address complaints in a time-bound manner and facilitate online follow-ups in cases where developers delay implementing the authority’s orders.
To combat fund diversion, UP-Rera is introducing a new method to regulate fund collection and spending in realty projects. This approach involves engaging state-level banks to monitor fund collection and spending by developers. Under this system, developers will be required to open three bank accounts for each project: one for fund collection from buyers, one as a separate account, and one for operational expenditures. Banks will have the authority to automatically transfer 70% of collected funds into the separate account and 30% into the expenditure account. This ensures that funds are used for construction, land costs, and other project-related expenses, preventing misuse.
Moreover, UP-Rera aims to prevent cases where developers acquire more land than officially purchased for a housing project. The digitization of land records for 13 major cities, including Noida and Greater Noida, will ensure that building maps are approved only for the allotted land, eliminating discrepancies and unauthorized land use.
These regulatory measures have received positive feedback from both realtors and homebuyers. They are expected to safeguard homebuyer rights and promote growth in the real estate sector, particularly in Noida and Greater Noida, which have faced challenges due to project delays and fund diversion.
Also read: UP-Rera Urges Government to Separate Flat Registration from Financial Dues