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Time frame for RCs execution unsettle builders' games

By Rakesh Ranjan- 11 Mar 2021
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New Delhi (11.03.2021): Real estate builders and their cohorts in the UP administration might have become a bit unsettled following the Allahabad HC in a judgment in February 2021 setting a time limit of three months for the execution of recovery certificates (RCs) issued by the state RERA authorities.

It will be interesting to see the new techniques, if any, to be developed by builders and their cohorts to bypass and defeat the HC order on the execution of RCs.

RCs are issued by the RERA authorities for recovery of the dues of homebuyers in case of the developer failing to hand over the house/flat to buyers within the promised time limit.

Open-source reports (OSREP) indicate that while UP-RERA has been successful in disposing of 74% of the cases filed by homebuyers, only 16% of the recovery certificates issued by it have been executed by the state administration which has the responsibility at each district level to implement the RERA order.

According to official figures, UP-RERA has issued  3,161 RCs - of which 1849 have been issued to the builders of Noida, 426 of Ghaziabad, 739 of Lucknow, and 147 of other district builders. 

Further, the Noida authorities are getting ready to initiate action against real estate developers who have offered possession to homebuyers without doing the registry.

Reportedly, the authorities inspected 18 housing societies and found people living there for 4-5 years without registration, causing revenue loss to the state government.

"Builders have been asked to complete the documentation in March. The Real Estate Regulatory Authority (RERA) has also been asked to take necessary action in the matter," the authorities said in a statement.

Builders have been given the option to pay at one go or pay according to the progress of the registration process.  They have been given three months time to complete the registry and clear their dues.

(By Rakesh Ranjan)

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