UP- RERA to Auction Defaulting Developers Properties
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has ordered development authorities in the state to furnish property details of all defaulting developers in their jurisdictions within 15 days. These will be passed onto the concerned district magistrates who can then auction the properties to recover homebuyers’ money from defaulting builders against whom recovery certificates have been issued.
According to RERA Chairman Rajive Kumar, the authority has till date issued nearly 2,000 recovery certificates, and the total amount to be recovered from defaulters is around Rs 600 crore. About 15 percent of the amount against these recovery certificates has been realised and transferred to homebuyers, he added. A recovery certificate is issued after an individual or firm refuses to pay the default amount as ordered by either a court or a quasi-judicial body. The recovery amount is collected the district administration.
UP-Rera has identified 25 top defaulters in the state and asked them to provide these details by August 17. UP-Rera has also prepared a list of top 10 defaulting promoters on the basis of their non-compliance with the authority’s orders. A total 3,850 orders, including 1,448 refund orders and 2,402 possession orders, and 667 recovery certificates have been issued against these promoters, said the authority.