Page 33 - RERA Performance Report 2020

33 U.P. RERA PERFORMANCE REPORT 2020

2.1 Facilitating the Development Work after the Revocation of the Registration

In case of the projects where the registration has been revoked by the Authority, the
association of allottees of the project has the first right of refusal for carrying out the
remaining development works. Therefore, after the expiry of the period for appeal against
the order of the revocation of the registration under the provisions of this Act, a public
notice is issued seeking a viable and convincing proposal from the association of allottees
to complete the remaining development work in the project, with the condition that such
a proposal must be submitted on the basis of the written consent of more than 50
percent allottees of the project.

2.2 Facilitating the Development Work on Lapse of the Registration

In case of the project where registration has lapsed with no further scope for extension
and development work in the project still pending, the Authority more than one models
including the joint development of the project by bringing together the AOA and the
promoter. In this case, the promoter and the association of allottees are jointly authorized
to complete the remaining development work under the close supervision of the ‘Project
Advisory & Monitoring Committee’ constituted by the Authority. The association of
allottees is required to seek consent of more than 50 percent of the allottees as a
precondition to proceed with joint development. Differences, if any, between the
promoter and the association of allottees, are resolved with assistance of the Conciliation
Forum at U.P. RERA.

2.3 Rehabilitation Models adopted by U.P. RERA
The Authority has identified three possible approach models for the rehabilitation of
projects under section 8 of the Act depending on the conditions relevant to the project.

Approach 1: Development of Project by the Association of Allottees

Under this model, the development of the remaining work in the project is undertaken by
the association of allottees. This is a case of a win-lose model where the promoter would
lose the right to develop and further sale of the project and the association of allottees
steps in to discharge all the functions of the promoter except the execution of the sale
deed. Of course, the promoter remains liable for all the defaults and liabilities.