Evershine Builders

In a move that would set a precedent for other states to follow, the Uttar Pradesh Real Estate Regulatory Authority has asked the Noida Administration to slap recovery certificates (RC) on two developers and recoup Rs 1.23 crore from them over their failure to comply with the body’s previous order. The regulatory body, which was set up in May last year, had earlier directed the two developers—IVR Prime IT Pvt Ltd and Amrapali Group – to refund buyers who decided to opt out of their projects.

Complaints filed by public, where they allege of being cheated by a developer cannot be termed as "civil disputes" and the police have to probe such cases diligently, the Bombay High Court has said. While passing the order, the HC also said that the police should not shirk away from their responsibility by terming such complaints as civil disputes.

The GDA is likely to move a proposal later this month to allow defaulters pay dues in installments. However, there is a catch. Not all developers will benefit from this move since it is not a policy decision and benefits will be offered to builders after studying their capability and intent to pay.

In an audit of 28 builder accounts by the Yamuna Expressway Industrial Development Authority (Yeida), two parties have been found guilty of diverting funds collected form homebuyers. The two developers who have been found to be diverting funds are SDS Infracon and Green Bay Infrastructure. While SDS Infracon is accused of diverting Rs 182.44 crore it collected from homebuyers, Green Bay misused Rs 173.10 crore collected from the same source.

In Noida, the period between 2011 and 2012 was declared a zero-interest period. During the zero-interest period, when construction was hit because of farmer protests, builders were not required to pay interest on land dues. After great deliberation and study, the move was launched. Now, authorities suspect developers of misusing the benefit offered to them.