UP RERA authorizes Promoter to complete Elegant Ville Construction & development 

Gautam Buddha Nagar/Lucknow, September 29, 2023: To protect the interests of the allottees of Elegant Ville, a stuck project of Gautam Buddha Nagar, U.P. RERA has authorized the promoter to complete the remaining construction and development work under provisions of the Section 8 of the RERA Act with consent of its majority of allottees. For this, the promoter of the project, M/s Elegant Infracon Private Limited, has collaborated with M/s Floral Realtech Private Limited and presented a plan of project rehabilitation according to which the project will be completed in next 12 months to obtain Occupancy Certificate (OC).

Elegant Ville project is located in Plot No. GH-06B, Techzone-4, Greater Noida West, Gautam Buddha Nagar. The promoter, M/s Elegant Infracon Pvt. Ltd., has registered the project in three phases in U.P. RERA in year 2017. The construction of the project could not be completed till the valid registration period and registration of Phase-1 (UPRERAPRJ10120) lapsed in August 2018, registration of Phase-3 (UPRERAPRJ10224) lapsed in February 2019 and registration of Phase-4 (UPRERAPRJ10234) lapsed in July 2019. The Elegant Ville project has 6 towers including Tower C and D in Phase-1, Tower B and E in Phase-3 and Tower A and F in Phase-4. The remaining construction and development work of total 761 units in the project will be completed under the monitoring of U.P. RERA.

A presss release issued by UP RERA mentions that, based on the site inspection report of the Elegant Ville project, construction in Phase-1 is 75-78 per cent, Phase-3 is 74-76 per cent and Phase-4 is 60 per cent complete. Out of total 761 units in Elegant Ville, 686 units have been sold while 75 units are yet to be sold. According to an estimate, a sum of Rs. 120.01 Cr. can be raised while completion of the project that includes Rs. 65.93 Cr. from the existing allottees and Rs. 47.58 Cr. by selling the remaining unsold units. Additionally, Floral Realtech will infuse Rs. 6.50 Cr. in the project in first six months. The estimated cost of completing the project and all other expenses is approximately Rs. 90.5 Cr. and, thus, the project is financially viable and can be completed.

According to the RERA Act, the project was granted maximum permissible extension of registration in all phases and extending further extension was not possible. U.P. RERA had directed the promoter to submit a plan with the consent of the majority of allottees to complete the construction of the project. Further, Elegant Infracon informed the Regulatory Authority about the collaboration with Floral Realtech and consent of allottees and tabled its plan to complete the project. The Project Management Division, established in the NCR Regional Office, reviewed the plan thoroughly and found that the project completion plan submitted by the promoter is acceptable. Hence, in order to protect the interests of the allottees and to fulfil the objectives of the RERA Act, U.P. RERA decided to extend full cooperation to ensure completion of the project under the provisions of Section 8 of the RERA Act along with Section 6 and 37. 

The Regulatory Authority has laid down the following conditions to ensure successful completion of the project:

– An advance fund amounting to Rs 4.50 Cr. will have to be deposited in the next 3 months and Rs 2.0 Cr. in the next 6 months in a separate bank account in the name of the project so that the development and construction work can continue. All future payments received from the promoter and allottees will be deposited in this separate account and the entire amount will be used only for the construction and development of the project as per the provisions of the RERA Act.

– Under chairmanship of one Member of the Regulatory Authority, the progress of the project will be monitored by the Project Advisory and Monitoring Committee (PAMC) of U.P. RERA. The monitoring committee will consist of the Chief Executive Officer of GNIDA as well as U.P. RERA’s Conciliation Consultant, Finance Controller, Technical Consultant, consultants of Project Management Division (PMD), promoter and Association of Allottee (AoA).

– The Authority will transfer the project to the special category of projects under rehabilitation, review its progress every quarter and appoint a third party construction consultant to review the construction and financial milestone continuously.

– The amount against 25 recovery certificates issued by U.P. RERA worth Rs. 11.00 Cr. payable to allottees will be addressed by the promoters.

Sanjay Bhoosreddy, Chairman, U.P. RERA said, “We are making all possible efforts to protect the interests of all stakeholders, especially allottees, in stuck projects. Elegant Ville is the 18th project being approved under provisions of section-8 for rehabilitation after having consent of allottees and collaboration of promoters. Under the provisions of the RERA Act, we are exploring all the possibilities of completing other such projects so that construction work can be encouraged in other stuck projects for completion. Speedy rehabilitation of the projects stuck for years is important for the development of the real estate sector, which will provide new direction and energy to the entire real estate sector along with providing homes to the home buyers of the projects. Rehabilitation of stuck project is not only an opportunity but also a joint responsibility of allottees and promoters to complete a project.”