Page 32 - RERA Performance Report 2020

32 U.P. RERA PERFORMANCE REPORT 2020

The promoter is also provided an opportunity of personal hearing to address the issues
specified in the show cause notice also to submit a resolution plan before the Authority.
Proposal of promoters are examined and if required, additional information is sought vide
order of the Authority within a stipulated time. If there is no response against the
Rehabilitation of Projects by U.P. RERA show-cause notice and subsequent orders, or the response received is found
unconvincing, an order is issued revoking the registration of the project. The revocation of

By Balvinder Kumar, Member U.P. RERA registration of the project is the first step taken by U.P. RERA towards rehabilitation of a
With Dinesh Kumar Singh & Raghavendra Mandavilli project.

U.P. RERA then lists the promoter as a defaulter on the web portal and places the project
under the category of the de-registered projects along with the details and photographs
of the directors in the promoter company. Further, a communication is sent to all other
Real Estate Regulatory Authorities in the country that the promoter has been put under
the category of a defaulter. Similarly, a communication is sent to the concerned bank to
freeze the bank account of the project to ensure that money paid by the homebuyers
remains secure.

A ‘Project Advisory & Monitoring Committee’ (Committee), as laid down by the
government in its guidelines in this regard, is constituted under the chairmanship of one
of the members of the Authority with the CEO or the VC of the concerned competent
authority, senior officers of U.P. RERA, the concerned bank and the the association of
allottees of the project to advise the Authority and oversee the further work relating to the
completion of the remaining development of the project.

Till now, registration of 66 projects has been revoked, out of which 43 projects belong to
Amrapali Group covered under the orders of the hon'ble Supreme Court, 16 projects fall
under Shahberi village of Gautam buddh Nagar for which sanction from the competent
authority had recommended for the revocation of the registration of these projects. The
registration of the remaining seven projects was revoked after considering the facts
relating to the case including the reply of the concerned promoters.

Section 8 of the RERA Act – Rehabilitation of Projects

Section 8 of the RERA Act empowers the Authority to proceed further to rehabilitate a
stuck / stalled project where the registration has been revoked under section 7 of the Act
or the registration given under section 5 of the Act has lapsed and the project has not
been completed. The state government, on the recommendations of the Authority, has
issued detailed policy guidelines to be followed in such matters.

Project Management Division

U.P. RERA has established a separate division called ‘Project Management Division’ (PMD)
at its NCR Regional office at Gautambudh Nagar and appointed an experienced ex-senior
officer to oversee the work pertaining to action under Section 7 and Section 8 of the RERA
Act. The responsibilities of this division include –
a Identifying projects which are stuck / stalled, or where the construction is hopelessly
slow
b Understand the issues affecting the development of such projects by consulting the
stakeholders like the allottees, the promoter and the competent authority
c Analyze the viability of the project on its own or through consultants, both in terms of
financial and operational prudence
d Support the Authority in its functions under Section 7 and Section 8 of the RERA Act
e Support the Committee in further work relating to the completion of the remaining
development of the project.
f Facilitate the review meetings in the Authority with the promoters, AOAs, competent
authorities and others concerned.