HomeDaily NewsDNA: Flat buyers, builder to jointly complete stuck Noida project.

DNA: Flat buyers, builder to jointly complete stuck Noida project.

In a speedy redressal, Uttar Pradesh Real Estate Regulatory Authority (Rera) on Wednesday delivered a unique judgment that the flat buyers and the builder will jointly control and complete an unfinished housing project in Greater Noida.

UP Rera ordered that the builder and buyers of Kamrup Housing Project in Greater Noida will form a committee which will manage the money and the expenditure to complete the project which is stuck since the last three years.

UP Rera has appointed a “conciliator” to supervise the financial transaction.

This move has come after buyers of Kamrup Housing Project in Greater Noida, under the aegis of ‘Durva Greens Social Welfare Society’, approached UP Rera, seeking handover of the project to them as the project was stuck and the builder had no money to complete the project.

Venkat Rao, counsel for the buyers’ association, described the order as a milestone under the Rera regime.

“The order envisages transfer of control of the operation of the project from the developer to buyers’ association with a perspective of completing the stuck project under the supervision of conciliator appointed by UP Rera,” Rao told DNA Money.

“It is going to be a great co-operative effort between the developer and buyers’ association under the direct supervision of UP Rera deliver homes to long aggrieved buyers,” Rao said.

This project is 70% complete and the hapless buyers are waiting for possession for the last three years.

According to the UP Rera order, the day-to-day operations would be carried out under a three-member committee consisting of two members representing the buyers’ association and one the developer. Initially, the buyers’ association would infuse Rs 50-60 lakh for restarting the stuck work and the balance would be raised from receivables and fresh sales. Out of 144 units, 33 units still have to be sold.

Balvinder Kumar, member, UP Rera, told DNA Money, “This is a unique order where buyers and builder came together to complete the unfinished project amicably. Both the builder and the buyers under the supervision of Rera will complete the project. If this order is executed successfully, then UP Rera will apply it to other cases too.”

The buyers’ association said that the builder has cooperated to achieve this order. “This judgement shall be a milestone in solving the builder buyer dispute throughout the country. Both the judges have been hearing the problems of buyers very patiently and exploring the ways to solve them up to the satisfaction of buyers,” the association said.

The Greater Noida Industrial Development Authority (GNIDA) had allotted a 10,000 square metre plot to Delhi-based developer Kamrup Housing Project Pvt Ltd for a housing project. The builder has launched ‘Durva Greens’ housing project on this plot in October 2011. The construction work started in October 2012 and continued up to November 2014 and the superstructure was built. After that the construction stopped for unspecified reasons nearly for three years.

The aggrieved flat buyers formed a group, Durva Greens Social Welfare Society, to deal with the builder in an organised manner. After missing the various deadlines of possession, the builder promised to complete the flats and give possession by December 31, 2017, according to the complaint filed with UP Rera. GNIDA convened three meetings between the promoter and buyers to find out a solution, but the promoter did not honour any commitment assured in writing in the meeting, following which the buyers approached UP Rera to find out a solution.

TIME TO REVIVE

  • UP Rera has ordered the builder and buyers of Kamrup Housing Project in Greater Noida to form a committee to complete the project
  • The real estate regulatory authority has appointed a “conciliator” to supervise the financial transaction