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Real estate developers are serious about completing projects by June 2021 need not refund homebuyers, says UP RERA

Real estate developers: Uttar Pradesh Real Estate Regulatory Authority (UP RERA) said real estate developers & builders are now very much serious about completing their pending projects and delivering it to the buyers by June 2021.

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It further added that the builders may not refund the amount that was earlier deposited by the homebuyers. However, homebuyers are unhappy with this decision of UP RERA.

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Commenting on this update, Balwinder Kumar a UP RERA member said: “We have decided that builders who are serious about completing the projects, notwithstanding the duration of the delay to date, within one year up to June 2021, may not be required to refund the amount to homebuyers.”

Balwinder further added that the team is currently inspecting pending projects and is making a list of such projects mainly in the area of Noida and Greater Noida and for that issue, the builders would have to submit an affidavit mentioning the delivery time of the pending projects.

As per the records, nearly 80 percent of the projects in Noida and Greater Noida is going to complete. They are in the final stage of completion. This one year is being called a serious period and it also includes the six-month extension which is provided under RERA.

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Earlier the deadline to handover these pending projects was on March 25, however in May this year UP RERA decided to extend the deadline by six months in the wake of the coronavirus.

Balwinder also warned that a penalty of MCLR plus 1 percent will be imposed on the developers and builders who will fail to handover the possessions to the buyers within one year.

As per the records, to date, Uttar Pradesh Real Estate Regulatory Authority has always helped the homebuyers and has refunded around Rs. 96 crores to homebuyers.

At the same time, NAREDCO has asked the UP RERA to further grant a 12-month extension for finishing the construction projects in the state. The projects got delayed due to the coronavirus outbreak.

Also, read Migrant exodus outcome of failed city planning, but real estate can resuscitate economy after COVID: DLF’s K P Singh says