The Uttar Pradesh real estate regulatory authority (UP-Rera) has identified around 100 'ghost' realty projects, which builders have 'abandoned' and thus homebuyers and investors are left to suffer with no hope in sight. The UP-Rera has asked the Noida, Greater Noida and Yamuna Expressway Industrial Development authorities to identify more such projects, wherein homebuyers are suffering because the deadline to approve maps of these realty projects' building maps (five years) has elapsed.
Homebuyers are filing petitions seeking justice but the Rera cannot help because projects are not approved by agencies under its purview anymore. The Rera deals with all kinds of issues faced by the real estate sector.
"We have come to know about these abandoned projects after homebuyers filed petitions seeking justice. Most of these builders are either in jail or have left the country," Balvinder Kumar, member of the UP-Rera, said.
The UP-Rera estimates that there are around 100 'ghost' realty projects but it wants the authorities to conduct a survey to determine the actual number.
"We have estimated the number based on the information provided by the homebuyers. Now, we need the authorities to verify the details and submit a report about these projects. Once these projects are identified by the authorities and all details are collected, we can decide what to do within our legal preview," Kumar said.
As per rules, the Noida, Greater Noida authorities or the Yamuna Expressway Industrial Development Authority (Yeida) approves building maps, which remain valid for five years, Rera officials said.
"It means the builders have to construct these projects within five years or in some cases, get the deadline extended. But if the builder has not obtained an extension, the project loses its map approval. And as per law, without building map approval, we cannot register a project with us and take a decision in favour of the homebuyers," Kumar said.
Noida and Greater Noida authorities' officials said that these builders, who have abandoned their projects are facing financial crisis amid a slowdown in the realty sector. The builders have abandoned these projects as they do not have funds to finish and deliver these projects, they said.
The UP-Rera has discussed the issue of abandoned realty projects with the officials of the Noida, Greater Noida and Yeida in the past and sought the survey.
"We have discussed this issue with the Rera in the past. We are looking into this issue to reach a solution," Ritu Maheshwari, chief executive officer of the Noida authority, said.
The authorities have been asked to compile a list of the projects, the buyers affected, the total land involved and the cost involved in these projects. Meanwhile, the confederation of real estate developers association of India (CREDAI), a builders' lobby group, is also trying to resolve issues faced in realty projects.
"We are trying to help every builder, who is facing a crisis in this tough time, because we want all projects to be finished and delivered to homebuyers or investors, who have put in their hard-earned money. We are providing legal, technical help to builders in need of help. The authorities are also working to create a positive atmosphere so that the buyers get their flats," Amit Modi, vice-president of Western UP wing of CREDAI, said.
