Effective observation of UP RERA on the projects obtaining registration extension 

Lucknow/Gautam Buddh Nagar: UP. RERA has taken an initiative for the projects being ‘granted registration extension’. To achieve completion of the projects in a set timeframe, responsibility of each stakeholder will be assigned. Promoters are allowed to seek extension of 1 year to complete their projects under section-6 of the RERA Act. But now promoters have to mention reasons of delay in project timelines, sold units and collected funds from them, funds available in separate account, etc. through an affidavit having 10 points. Also, they have to include plan of project completion and source of funds as major points along with other for the same and upload it on the portal, www.up-rera.in.

The construction and development plan with financial management received from the promoters will be reviewed by the Regulatory Authority on the basis of latest site inspection report. While review of the plans, quarterly and six monthly targets of the construction and development works will be set along with source of finance. Further, the progress of the project will be evaluated on the basis of these set targets. The objective of this initiative is to create a shield and protect interest of the stakeholders, especially the allottees.

Also, it is an effort to prevent such projects to become another stuck project due to lack of desired monitoring and responsibility, this initiative will push the promoters to complete project in a stipulated timeframe. For any real estate project, plan of construction and development and management of finance are potential factors that affect the completion timelines. By achieving the physical and financial targets set in the plans, submitted by promoters, will remove uncertainty about construction timelines and it will boost credibility of the sector positively. In this process, responsibilities of all the stakeholders associated with the project will be fixed so that the construction and development of the project continues, without any interruption.

According to Sanjay Bhoosreddy, Chairman of U.P. RERA, “the objective of RERA Act was to bring transparency, credibility and responsibility in the real estate sector. This initiative is an effort to create another level of shield to protect interest of all stakeholders in order to improve transparency, fix responsibility and boost credibility of the sector. To prevent a project to become stuck, it is important for it to achieve completion as per the set timelines.”

Apart from allowing extension of registration, U.P. RERA is all set to review growth of project every quarter as per set targets in order to move towards absolute project completion.