UP RERA Enhances Fund Recovery Process for Allottees with New Streamlined Procedures

Lucknow / Gautam Budh Nagar /  September 25, 2024: UP RERA streamlines the recovery of funds owed to allottees from promoters through recovery certificates (RCs). Upon receiving the recovered amount from the District Magistrate, the allottee must submit an affidavit to RERA. The funds are then transferred to the allottee’s account upon receipt of this affidavit. To expedite the money transfer process, U.P. RERA issued a detailed and revised Standard Operating Procedure (S.O.P.) on September 10, 2024, which is available on its portal, UP RERA said in a portal. 

Under the previous system, a letter was sent to the complainant via post after the Demand Draft (D.D.) or cheque was cleared by the bank. To streamline the process, a new arrangement has been implemented. Now, once the D.D. or cheque is cleared, the bank will update the details of the recovered funds in its software, which will be immediately reflected on the U.P. RERA portal through an Application Programming Interface (API). Following this update, an email will be sent to the allottee from the U.P. RERA portal, requesting them to submit a notarized affidavit on non-judicial stamp paper of Rs. 10 in the specified format attached to the email, the statement added. 

This affidavit is essential for the transfer of funds to the complainant, and it is expected that he will submit it promptly and accurately. In this affidavit, the complainant must provide details of his bank account or joint bank account in the case of joint allotment, any amounts received from the promoter, and information regarding any injunction orders from a competent court, if applicable. The complainant is also required to disclose details of any bank loans and include an undertaking to repay such loans. Additionally, the allottee must submit a copy of the passbook or a canceled cheque as proof of the bank account details.

The allottee must submit this affidavit promptly and in original form, either via speed post or in person at the U.P. RERA headquarters in Lucknow or the Greater Noida office. Additionally, a scanned copy of the affidavit must be uploaded through the allottee’s login on the U.P. RERA portal. It is common for District Magistrates to recover amounts against the recovery certificates (RCs) in installments, especially for large RC amounts. However, the allottee is only required to submit this affidavit once, upon receiving the first installment of funds. These instructions will also apply to the transfer of money received through the Appellate Tribunal.

Sanjay Bhoosreddy, Chairman of UP RERA, emphasized the organization’s commitment to delivering prompt justice to allottees and its ongoing efforts to streamline processes for swiftly implementing RERA orders. He noted that RERA has integrated an API with the relevant bank to facilitate the prompt transfer of funds received from District Magistrates to complainants. This new arrangement is expected to expedite the clearance of Demand Drafts (DD) or cheques and reduce the time previously required to send emails to complainants for affidavit submission, which is essential for transferring recovered funds. The updated Standard Operating Procedure (S.O.P.) of U.P. RERA will ensure proper monitoring of the entire transaction process for money recovered through District Magistrates. He urged allottees to file their affidavits promptly to ensure the timely transfer of recovered amounts into their accounts.