As per the procedure established, the relators are required to hand over the unit to the homebuyers on time. If such has not been complied with, a recovery certificate is issued against the realtors. UP RERA recently took a massive step by issuing recovery notice against 5 builders who failed to abide by the orders made by the Authority. And now, the same notice has been issued against 2 realtors one from Lucknow and other from Gautam Budh Nagar due to non-compliance of the order to refund the money to homebuyers within the stipulated time.

Arshi Parveen, an allottee deposited an amount of 25 lakhs in 2011 to book a plot with the developer. Unfortunately, the developer failed to hand over the possession within the stipulated time post which, Arshi Parveen approached UP RERA to issue directions to the developer to either refund the money along with the specified interest rate or to provide the plot booked by her. After failing to comply with the orders, UP RERA sought recovery of INR 38.97 lakhs from the builders Ansal API.

Another homebuyer named Pravin Kumar Gambhir filed a complaint and due to non-compliance of the conditions a similar notice as issued to Ansal API was issued to District Magistrate of Gautam Buddh Nagar to realize an amount of INR 26.79 lakhs from Ms Greenbay Developers.

It has been a laid law that the developer first receives the notice demanding money post which he could be sent to jail. After this, his assets can be sold off to recover the amount due. Based on the said law under section 40 of Real Estate (Regulation &) 2016, RCs against 5 developers has been issued by the regulatory body yet so far none of the have complied with.