Uttar Pradesh RERA cancels two projects of Ansal API

February 13, 2021 0 By Realtyao

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has canceled two projects under Section 7 of the RERA Act. This project comes under Ansal API.

The two projects are Ansal API, Pocket-2, Sector-P, Sushant Golf City, and Ansal API, Pocket-2, Sector-J, Sushant Golf City.

The UP authority gave notice to the developer. But the developer was not able to provide any satisfactory response. So, UP-RERA canceled the projects. As a result, they carried out the procedure of deregistration.

RERA authority had found several financial irregularities in the project. Officials have found a diversion of an amount of ₹606 crores from the project for other purposes.

Complaints received

The RERA authority had received a large number of complaints from the allottee of the projects such as:

  • non-possession of units,
  • non-refund of the amount deposited by the allottees,
  • violation of terms and conditions of the contract letter.

Rajive Kumar, chairman, UP RERA told in his interview, “Deregistration order was served based upon the information collected, site inspections made. Complaints registered in RERA and non-compliance of the provision of RERA Act. While the Authority had already given strict warnings. This decision was taken after we gave them ample time. To respond after repeated notices were issued to them. This step should be seen as a warning to others.

Now, moving on from this project. The RERA authority has also asked the developer to upload the completion certificate of another project. The developer must upload it on the UP RERA website. This project is located in Pocket-3, Sector-A, Sushant Golf City.

Forensic auditor Currie & Brown audited the three projects. They have also discovered that there were violations of RERA consent.

Canceled the projects!

The promoter has to deposit a sum of Rs 9.4 crore in a separate account. The deposit is for the allottees within three months. This is also to complete the other projects registered with the authority.

The promoter has to pay a penalty of ₹ 161.65 lakh. It comes under the violation of Section 4, 11, and 14 of the RERA Act.

The Release said…

The developer should have developed and delivered the project phase-wise. Contrary to which the developer expanded hugely. Which resulted in mismanagement of resources & funds. Currently, a large parcel of land in phase-1 and phase-2 is mortgaged to various banks. Through the process of equitable mortgage. Repayment of the availed loan has posed a challenge in project completion“.

The developer has also hypothecated the project receivables in few loan agreements. The auditor has also found about surplus of money in the project.

The complainants are of mismanagement by the developer. In certain cases, the developer does not even have the project land. He made an allotment to them without having the required land.

As a result, UP RERA has taken a very strong decision. This will be a warning for the next developers.

Source: EtRealty.com