Status as on 19/06/2019
Unnati Fortune Holdings’ Aryana Project which started in 2007 was recently deregistered. Its registration was revoked under Sec. 7 of RERA. This is one of the first projects to be deregistered by UP-RERA and the subsequent proceedings will decide how well RERA will be in implementation. UP-RERA will take over the development of the project and this will decide the effectiveness of Section 8 of the Real Estate (Regulation and Development) Act, 2016.
Under Section 8, it is the obligation of the Authority to carry out the remainder of the project. The responsibility to clean up the mess left by the developers of the Aryana project will fall on their shoulders. In pursuance of the same, UP-RERA has opened a website inviting actual owners to declare ownership. This will help in sorting out all the genuine buyers, the amount that has been paid by them to the builders and the amount still owed; bringing about some form of organization.
Another problem faced is the unorganized and misleading allocation of flats, some flats have multiple allottees while several flats are booked under one name. The website floated by UP-RERA seeks to organize the buyers in a way which would give an actual representation of the actual funds available, work that remains to be done and the resources at their disposal.
As of now, UP-RERA has frozen all project accounts of Unnati Fortune connected to Phase 3, 4 and 5. This was done in pursuance of Sec 7(4) of RERA. UP-RERA is now looking for co-builders in order to carry out the completion of the project. 4 of the 8 towers are ready for completion, however, the remaining 4 towers have major work pending. Whereas buyers of Phase 1 and 2 have paid close to 90% of the dues, only 20% has been paid up for Phase 3, 4 and 5.
This project acquires a lot of importance because it is one of the first projects to be deregistered and taken over by a RERA Authority. Valued close to Rs. 1,500 Cr, this will decide the how apt Sections 7 and 8 are in implementation. The very nature of its timing and valuation will play a huge role in direction RERA takes as an act. It is a sink or swim moment for RERA.