In case of non-payment of instalments by allottees of such projects, the promoter has the right to receive interest and cancel the allotment, UPRERA said
As many as 12 real estate projects in Uttar Pradesh whose registration had been cancelled or terminated and whose development works had not been completed are being rehabilitated through promoters or association of allottees under the provisions of Section 8 of RERA Act, UP RERA said on March 24.
On the issue of balance instalments of some of these projects not being paid by some allottees, the authority has said that in case of non-payment of instalments, the promoter has the right to receive interest and cancel the allotment. The issue was brought to the notice of the Authority during review meetings held recently.
As many as 11 of these projects are in Ghaziabad and Gautam Buddha Nagar and one is located in Lucknow.
Action is being taken by the Uttar Pradesh Real Estate Regulatory Authority under Section 8 of the RERA Act 2016 to complete such projects by a group of allottees or joint efforts of promoters and allottees. Most of the projects are progressing normally, UP RERA said in a statement.
Section 8 of RERA empowers authorities to hand over the completion task to buyers’ association.
The RERA Act clearly states that “Upon lapse of registration or on the revocation of registration under this Act, the Authority, may consult the appropriate government to take such action as it may deem fit including the carrying out of the remaining development works by a competent authority or by the association of allottees or in any other manner, as may be determined by the Authority”.
UP RERA had laid down terms and conditions for both promoters and allottees to ensure the availability of economic resources in these projects and to undertake time-bound development of work. Project advisory and monitoring committees have been constituted to see that the development work in these projects goes on unabated.
The progress of the projects is reviewed by the committee every quarter with the concerned promoter and group of allottees and efforts are made to remove any obstacles in the development of the project, it said.
The problem of non-payment of balance instalments on time has been taken up seriously by the Authority which has said that allottees of the respective projects pay the balance instalments regularly with a view to ensuring time-bound development of the project.
However, in the event of instalments not being paid, the Land Estate (Exchange and Development) (Agreement for Development / Lease) Rules, 2018 will kick in.
As per Rule 9.3 (i) of the Amendment Act, the option of levying interest on the allottees or cancelling their allotment is available and in case of projects where development work is stalled due to non-payment of remaining installments, notice should be sent by the promoter/group of allottees concerned to those allottees who have not paid their remaining instalments yet, UP RERA has said.
In case of non-payment of these instalments within the stipulated time period, as per Rule 9.3 (i) of the Land Estates (Exchange and Development) (Agreement for Development / Lease) Rules, 2018, the balance amount of instalment have to be paid with the interest at the rate of SBI MCLR plus 1 percent.
For such allottees, who have not paid two consecutive instalments, a notice should be sent to pay the balance instalment along with interest rate of SBI MCLR+1 percent within one month. It should also be mentioned in this notice that if the concerned allottee does not pay the third instalment along with the remaining two instalments on time, then his allotment will be cancelled.It should also be clarified in the notice to be sent to the allottee that after the cancellation of allotment, after deducting the booking amount and interest related liabilities, the principal amount deposited will be returned to the allottee, only after the unit will be re-sold or the project is completed (whichever happens earlier), UP RERA said.
