Page 51 - RERA Performance Report 2020

51 U.P. RERA PERFORMANCE REPORT 2020

I remember when during our visit to Maharashtra RERA a member of the Maharashtra The Authority has so far worked on two models to facilitate the completion of the
I remember when during our visit to Maharashtra RERA a member of the Maharashtra
RERA had asked me about the background of the chairman and the members of U.P. RERA projects where the registration has either lapsed or been revoked. In one instance, it has
RERA had asked me about the background of the chairman and the members of U.P. RERA
and who after listening to my answer had remarked that U.P. has not restricted itself to just
and who after listening to my answer had remarked that U.P. has not restricted itself to just authorized the Association of Allottees of the Sampada Livia project to carry out the
one set of expertise and experience. The Authority, over the short period of just three years,
one set of expertise and experience. The Authority, over the short period of just three years, remaining development work. In the second case the Project Advisory Committee of the
has been able to fulfil almost all its mandates and working on new strategies and solutions
has been able to fulfil almost all its mandates and working on new strategies and solutions Authority, has facilitated an agreement between the promoter Jaiprakash Associates
and has set some new short- and long-term goals for future.
and has set some new short- and long-term goals for future.Limited of the project ‘Jaypee Kalypso Court (Phase-II)’and the Association of Allottees,
subsequent on lapse of the registration of the project. Here, the promoter has been
The real estate sector is one of the most important areas of the socio-economic life of the entrusted the task of completing the remaining work of the project, as per special terms
The real estate sector is one of the most important areas of the socio-economic life of the
country. The sector accounts for 6-7 percent of the national GDP and is the second largest
country. The sector accounts for 6-7 percent of the national GDP and is the second largest and conditions imposed by RERA, within a strict timeline. Under both the models, the
Authority will be closely monitoring the progress in the project. These decisions will
employer in the country. The new India, especially urban and aspirant India, will need
employer in the country. The new India, especially urban and aspirant India, will need a a
blooming disciplined real estate sector for its housing needs. U.P. RERA has to meet so ensure that the provisions of section 7 and 8 of the Act are effectively used to ensure that
blooming disciplined real estate sector for its housing needs. U.P. RERA has to meet so
many aspirations of various stakeholders, however, for the sake of convenience of the
many aspirations of various stakeholders, however, for the sake of convenience of the the projects are completed and the allottees get their houses.
readers, we shall be restricting ourselves to the following only::
readers, we shall be restricting ourselves to the following only
Proceedings are underway to authorize the AOA or the competent authority, as the case
• Regulation of the real estate projects and monitoring of separate account of the projects
• Regulation of the real estate projects and monitoring of separate account of the projectsmay be, in case of other projects wherein the registration has been revoked.
• Adjudication of complains
• Adjudication of complains
• Execution of ordersThe Authority has created a separate category of “projects under redemption” on its
• Execution of orders
• Constructive interface with all stakeholderswebsite wherein the authorized entity will be required to update all the details relating to
• Constructive interface with all stakeholders
• Redressal of public grievances
• Redressal of public grievancesthe project, including its physical and financial progress for the benefit of the RERA and
• Policy initiatives
• Policy initiativesthe allottees.
Regulation of the real estate projects and monitoring of separate account of the projectsIn some cases, as provided under section 7 of the Act, the Authority had provided the
Regulation of the real estate projects and monitoring of separate account of the projects
promoter a window of few months to show the desired progress under the project and
U.P. RERA initially provided facility for web-based registration of the projects and the real
U.P. RERA initially provided facility for web-based registration of the projects and the real
ensure the compliances of the provisions of the Act, the Rules and orders of the Authority.
estate agents, and subsequently the facility for updating quarterly progress reports and
The Authority monitors such projects meticulously to ensure the promoter does not
estate agents, and subsequently the facility for updating quarterly progress reports and
withdraw from his commitments. Among such projects, the Authority subsequently
application for extension of registration was provided. The Authority realized from the very
application for extension of registration was provided. The Authority realized from the very
beginning the sector was beset with huge challenges. The Authority could not ignore the
beginning the sector was beset with huge challenges. The Authority could not ignore the
revoked the registration of the Festival City Phase 1 project of the Mist Direct Sales Pvt Ltd
incidence of a large number of extra-ordinarily delayed incomplete projects and a large
incidence of a large number of extra-ordinarily delayed incomplete projects and a large
for breach of its orders in this regard. The Authority is similarly calling for the compliance
number of allottees waiting for their houses.
number of allottees waiting for their houses.
reports of its interim orders dated 9th July 2019 in respect of 6 projects of the Ansal API
Pvt Ltd with a view to decide on further action in the matter as per the provisions of the
Act in the interest of the allottees.
The Authority is working on diversified strategies to tackle such issues. These include the
The Authority is working on diversified strategies to tackle such issues. These include the
audit of the projects of the errant promoters, empanelment of reputed audit firms,
audit of the projects of the errant promoters, empanelment of reputed audit firms,
The Authority is continuously monitoring the quarterly progress reports of the projects
empanelment of reputed third party construction consultants, inspection of the lagging
empanelment of reputed third party construction consultants, inspection of the lagging
projects by RERA technical cell, scrutiny of portal compliances, scrutiny of all relevant
projects by RERA technical cell, scrutiny of portal compliances, scrutiny of all relevant
and has imposed penalties of Rs one/two lakhs on 1088 projects for not updating of the
materials in Project Management Division (PMD) and consequent legal action based on the
QPRs in time.
materials in Project Management Division (PMD) and consequent legal action based on the
report of the PMD. U.P. RERA is also proposing to engage an agency for drone survey of the
report of the PMD. U.P. RERA is also proposing to engage an agency for drone survey of the
real estate projects so that it is aware of the actual status of the project and make timely The sanctity of the separate accounts of the projects is most crucial to the completion of
real estate projects so that it is aware of the actual status of the project and make timely
interventions.the projects as seen from the past experiences with some of the promoters transferring
interventions.
huge amounts received from the allottees outside the project resulting in their
As per the provisions of section 8 of the Act, the Authority, both in cases of revocation of the non-completion.
As per the provisions of section 8 of the Act, the Authority, both in cases of revocation of the
registration or the lapse of the registration of the project, is required to consult the state
registration or the lapse of the registration of the project, is required to consult the state
government in every case when it assigns the task of completing the remaining Therefore, the Authority has issued directions for the maintenance of the separate
government in every case when it assigns the task of completing the remaining
development work to the AOA or the competent authority, as the case may be. The U.P.
development work to the AOA or the competent authority, as the case may be. The U.P. management accounts of the project on 5th June 2020. Subsequently, the Authority has
RERA in order to streamline the facilitation of work under section 8 of the Act, had proposed provided an online form on its website accessible to the promoter through a
RERA in order to streamline the facilitation of work under section 8 of the Act, had proposed
a policy to the government for proceeding in all such matters. The state government has
a policy to the government for proceeding in all such matters. The state government has corresponding menu option on its dashboard for giving all relevant details of the receipts
issued the general policy guidelines to be followed in all such matters. This will facilitate of the project by 15th September 2020. This may be slightly extended in view of the
issued the general policy guidelines to be followed in all such matters. This will facilitate
quick action towards the completion of the project
quick action towards the completion of the project..s under present conditions.
difficulties experienced by some of the promoter
The policy guidelines issued by the government, inter alia, provide for a quick audit of such
The policy guidelines issued by the government, inter alia, provide for a quick audit of such The Authority is establishing an internal audit cell in its office to be functional within a
projects and the formation of a project advisory and monitoring committee under one of
projects and the formation of a project advisory and monitoring committee under one of fortnight to scrutinize all the details of the accounts of the projects and suggest further
the members of the Authority from the stage of inviting the proposals from AOA to the corrective or punitive action and also to utilize the services of the auditors to verify the
the members of the Authority from the stage of inviting the proposals from AOA to the
completion of the work in the project. So far, the audit of 244 projects has been got done accounts of the projects in respective banks as well as in the offices of the promoters. The
completion of the work in the project. So far, the audit of 244 projects has been got done
and, based on the findings of the audit and the inspections, action under section 7 of the
and, based on the findings of the audit and the inspections, action under section 7 of the Authority is extremely serious for ensuring the compliance of the provisions of the RERA
Act has been taken in respect of 30 projects.
Act has been taken in respect of 30 projects.Act and its directions by the promoters in respect of the separate account of the projects.