In a recent hearing, Sanjay Bhoosreddy, Chairman of the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA), expressed strong displeasure with the Prayagraj Development Authority (PDA) for delaying the possession and registration process for allottees of the Alaknanda project. The chairman’s dissatisfaction stemmed from PDA’s failure to comply with orders issued by UP-RERA in March 2023.
The Alaknanda project, overseen by PDA, had obtained its completion certificate in January 2024. Despite this, the promoter did not execute the sale deeds for nine allottees, even after ample opportunity to comply with UP-RERA’s directives. These actions led to significant frustration among the allottees, who sought enforcement of the original orders.
UP-RERA’s Response
Sanjay Bhoosreddy referred all nine cases to the court of the RERA Adjudicating Officer to ensure the registry and possession were completed in favor of the allottees. His decision highlights the authority’s commitment to protecting the interests of homebuyers and holding developers accountable.
Financial Implications
In addition to the directive for immediate registry and possession transfer, Bhoosreddy also ordered the issuance of recovery certificates. These certificates will enforce the payment of interest for delays, calculated at the State Bank of India Marginal Cost of Funds Based Lending Rate (SBI MCLR) plus 1 percent, dating back to 2016. This decision emphasizes the financial burden on the development authority, which continues to increase with ongoing delays.
Impact on Planning Authorities
Bhoosreddy’s comments underscored the importance of prompt action by planning authorities. He stressed that delays in executing registries and handing over possession are not only detrimental to the financial health of development authorities but also erode trust among homebuyers. Prompt execution of these duties is crucial for maintaining confidence in the real estate sector.
Conclusion
UP-RERA’s strong stance against the Prayagraj Development Authority serves as a reminder to all developers and planning authorities about the importance of adhering to regulatory orders. The decision aims to expedite the process of registration and possession transfer, ensuring that homebuyers’ rights are protected and respected.
