Uttar Pradesh: After UP-RERA Order, Noida Administration Set To Recover Rs 503 Crore From Builders

The Noida district administration on Thursday (6 April) said that it would launch a drive against 101 developers to collect Rs 503 crore from them against the 1,705 recovery certificates (RCs) issued by the Uttar Pradesh – Real Estate Regulatory Authority (UP-RERA).

The drive will start on Friday (7 April) with revenue officials issuing notices to the defaulting developers and beating drums or performing ‘munadi’ outside their offices to clear the dues.

If the developers fail to clear the dues, officials will seize and auction their properties and deposit the money with RERA. The money will then go to the entitled complainant allottees.

Vandita Srivastava, Additional District Magistrate (ADM), Gautam Budh Nagar, said that UP-RERA started issuing RCs in May 2018 and has issued 4,571 RCs worth Rs 1,700 crores. The administration has been able to recover Rs 350 crore against some 2,300 RCs, she said.

While some developers went to the National Company Law Tribunal (NCLT) to get their RCs withdrawn, others resolved their issues with the homebuyers.

“Currently, there are 1,705 RCs worth Rs 503 crore, and we will start a drive in this regard from Friday,” Srivastava added further. The drive is set to continue for the next two days, beginning from Dadri tehsil in Noida.

According to the district administration, they were not able to take any coercive action against developers due to the Covid outbreak, as mandated by the Supreme Court, from March 2020 to February 2022.

The UP-RERA on Monday (3 April) said in a statement that it had registered about 48,500 complaints in the last five years and nearly 60 per cent of them have come from Gautam Budh Nagar (including Noida and Greater Noida) followed by Lucknow. Of the total complaints, UP-RERA has been able to dispose of 42,980 (or 88 per cent) of the cases.

UP-RERA was established in 2017 under the Real Estate (Regulation and Development) Act, 2016, to regulate the fast-growing real estate sector, bring transparency, protect the interests of homebuyers, and ensure speedy resolutions of disputes among homebuyers and builders.