UP RERA Sets Precedence, Tells Noida Admin To Issue Recovery Certificates To 2 Builders
In a move that would set a precedent for other states to follow, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) 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.
Section 40 of the Real Estate (Regulation & Development) 2016, says that a buyers can demand for issuance of an RC in case a builders refused to refund him. Issuance of an RC means the developers would first receive a notice demanding the money, after which he could be sent to jail. In the third stage, assets of the offender could be frozen and they could be sold to recover the dues in the fourth stage.
The RERA in February this year directed IVR Prime to refund four buyers who has invested in shops to refund money with an 8.35 per cent interest. The builder did not comply with that order, forcing aggrieved investors to re-approach the regulatory body. The RC to Amrapali Group is being issued owing to its failure to deliver a residential unit at its Leisure Valley project in Noida and its refusal to refund the buyer. While IVR Prime has said it is willing to make the refund, Amrapali says it will appeal against the RERA order.
“Since our case is sub judice in the Supreme Court, this order stands cancelled,” director Shiv Priya told Media. Amrapali is facing insolvency proceedings for its failure to pay financial institutions. The SC is hearing several pleas of homebuyers who are against the company getting liquefied.