Builders urge UP-Rera to extend dates to register housing projects, postpone coercive action

Noida builders have urged Uttar Pradesh Real Estate Regulatory Authority (UP-Rera ) to issue a notification postponing the implementation of old orders, including those related to compliance and registrations of housing projects, as all government and private sector offices are shut in view of the of the nationwide lockdown to prevent the spread of Covid-19.

Builders said even after the government announced the lockdown, the old orders issued by UP-Rera are being implemented, thereby creating problems for respective builders.

The issues, which are being faced by the builders are related to refunds orders by UP-Rera, obtainment of registration number for a housing project, continuation of escrow account for housing projects and submission of quarterly progress report of respective realty projects, among others.

“As per the rules, UP-Rera has ordered refund in cases wherein the developer has failed to deliver a project as per the timelines promised. We have requested UP-Rera that the execution of such orders be postponed for the next three months as the financial condition of all builders is not sound, given the slowdown in the real estate sector,” RK Arora, president (Uttar Pradesh chapter) National Real Estate Development Council (NAREDCO), a developers’ lobbying body, said.

Builders said as per rules, they have to renew the registration of a housing project once it expires. But builders, whose registration date has by now expired, cannot do so due to the lockdown and they cannot even continue with the process of obtaining registration for old projects. UP-Rera also has a role in managing escrow accounts, which were opened to regulate the use of funds collected from buyers. Builders requested that the escrow accounts operations should be continued as they have to pay salary of the staff and also taxes.

“We have requested UP-Rera to issue a notification that all old orders stand postponed for the next three months. Once the lockdown is lifted, UP-Rera can again resume normal activities,” Harendra Yadav, member, NAREDCO, said.

UP-Rera member Balvinder Kumar said, “We will look into their demands and take appropriate decision.”