SK Builders And Developers

Real estate developers who have not been able to deliver their residential projects in Ghaziabad are staring at touch action. On April 23, Uttar Pradesh Urban Development Minister Suresh Khanna said that legal action would be taken against builders who had failed to deliver while stating that the state government was committed to guard the interest of homebuyers. Khanna is a part of a three-member team that was appointed by Chief Minister Yogi Adityanath last year to resolve the issues of homebuyers in the twin cities of Noida and Ghaziabad.

In a move that would further tighten the noose around unscrupulous builders who promise assured returns to buyers and stop payments midway, the National Company Law Appellate Tribunal has ruled that assured returns promised by a developer to a buyer through a proper agreement is financial debt. Buyers can file for an insolvency resolution under the Insolvency and Bankruptcy Code in case the builder fails to honour the agreement.

The Insolvency and Bankruptcy Code places consumers right at the end of the queue when it comes to distribution of assets if a company is liquidated, a fault the corporate ministry might correct soon. According to media reports, proposed amendments by a panel will be presented before the ministry to improve the resolution mechanism. Homebuyers could be brought in the category of secured financial creditors in insolvency proceedings.

Following an order of the Allahabad High Court, the Noida Authority has said it would not issue occupancy certificate to real estate company Omaxe for its project Grand Omaxe in Noida till the builder pays dues to the tune of Rs 250 crore. About 300 residents are already occupying flats in this project since 2012 without the units being registered.

Following a fire in Deonar dumping ground in 2016, the Mumbai High Court had banned new constructions and asked the Brihanmumbai Municipal Corporation (BMC) to devise a debris management plan. The BMC has now asked the developers to submit a debris dumping plan before the authority for seeking No-Objection Certificate (NOC) for construction. The developers will be required to identify a dumping site before starting the construction which will be inspected by the BMC and mentioned in the Intimation of Disapproval Certificate (IOD). Builders who generate small quantities of debris are exempted from this new rule.