The Uttar Pradesh government, under the leadership of Chief Minister Yogi Adityanath, has taken a significant step towards resolving the predicament faced by homebuyers in the National Capital Region (NCR) who have invested in residential projects but have yet to see their dream homes become a reality. The Yogi Adityanath cabinet recently approved a resolution plan formulated based on the recommendations of a committee led by former NITI Aayog CEO Amitabh Kant. This initiative aims to address the challenges posed by 4.12 lakh stressed units within stalled projects in the NCR, with a substantial number – 2.4 lakh units – situated in Noida and Greater Noida.
The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) will play a pivotal role in executing the resolution plan. The plan involves ensuring the completion of dormant projects, securing fresh funding from the state government, and utilizing the Special Window for Affordable and Mid-Income Housing fund.
The NITI Aayog committee, comprised of 14 members, recommended an approach based on the current status of projects. According to these recommendations, mandatory RERA registration for all projects, coupled with the establishment of an escrow account, will be essential to record future transactions transparently. Notably, pre-requisites and penalties have been waived off to facilitate a smoother process.
Projects that are already occupied will receive priority attention, and the registration of flats will be initiated for homebuyers who have fulfilled their obligations. The report emphasizes that the registry of flats to buyers will be treated separately and not delayed due to recovery issues from developers and promoters.
To recover dues from developers, authorities will follow the legal procedure outlined in the Revenue Recovery Act. UPRERA has been directed to compile a list of substantially completed but unoccupied projects within the next 30 days, with the goal of offering possession after overcoming administrative hurdles and obtaining completion certificates.
Sanjay R Bhoosreddy, Chief of UPRERA, assured that the interests of homebuyers would be the top priority throughout the resolution process.