UP-Rera to ask banks to provide funds to delayed real estate projects
Homebuyers welcomed the move by UP-Rera and urged the authority to resolve the hurdles coming their way in completing the delayed projects
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has decided to ask banks to provide funds to delayed real estate projects in Noida and Greater Noida, officials aware of the development said on Sunday. The move comes after the authority found that many homebuyers’ associations are struggling to arrange funds to complete the projects due to the reluctance of banks because of the uncertainty of recovery of their money.
Under Section 8 of the Rera Act, the authority has the option to de-register a project and invite the buyers’ association to take over the construction and delivery of the project in cases where the developer is not in a position to complete it. However, many buyers’ associations have been unable to do so due to the lack of funds.
There are as many as 18 delayed housing projects in Noida and Greater Noida areas comprising 10,000 flats that are being developed under the rehabilitation clause of the Uttar Pradesh Rera Act. Out of these, 15 are jointly developed by promoters and the Association of Allottees (AOA) of their respective project and three are with the AOA for construction and delivery, said Rera officials.
Sanjay Bhoosareddy, chairman of UP-Rera, said, “We have realized that the banks are reluctant to provide funds to these projects because of the uncertainty of recovery of their money.”
“But we need to deliver the flats to the buyers, who have been suffering for so long,” he added.
Bhoosareddy said that UP-Rera will call an urgent meeting with the lead bank officers in the state to request them to provide funding for the delayed projects. He also said that the authority will meet with the Noida and Greater Noida authorities to ensure that they provide all necessary permissions to the banks.
One such project where the buyers’ association is struggling to arrange funds is the Sampada Livia of PSA Impex Group in Greater Noida. The buyers had engaged a developer in January 2023 to complete the remaining work in the housing project.
The buyers arranged ₹9 crore and ₹4 crore by the new developer, but the bank stopped payment of the flat buyers’ home loan that was approved earlier, said officials. The realtor could only develop 10% of the ₹220 crore project of around 750 units that was to be delivered in 2012-13.
“We have come to know that the banks are not releasing the payment of the home loans approved earlier when the buyers need for the construction of incomplete projects,” said Bhoosareddy.
He added, “Our priority is that in such cases the banks continue to release the payment. And if the homebuyer need any legal support from us then we will extend the same to help the buyers get flats”
Meanwhile, homebuyers welcomed the move by UP-Rera and urged the authority to resolve the hurdles coming their way in completing the delayed projects.
“If Rera plays a proactive role and supports the buyers engaging other agencies including the Noida authority and the banks, then many cases related to late delivery can be resolved,” said Arun Singh, an aggrieved homebuyer.