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UP RERA aims to revive 10,000 stalled housing units

2023-09-06

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) is undertaking an initiative to revive housing projects comprising 10,000 units in order to safeguard the interests of both homebuyers and lenders.

This effort by the authority encompasses the examination of 17 housing projects valued at approximately Rs 20 billion, all of which have encountered various obstacles such as fund misappropriation, loan defaults, promoter bankruptcies, and financial misconduct.

Sanjay Bhoosreddy, Chairman of UP RERA, expressed the regulator's intent, stating, "The regulator will engage with defaulting promoters, financial institutions, bankers, and agents to formulate a comprehensive plan for the resurrection of these projects." Notably, some of these projects are associated with prominent builders such as Ansals and Supertech.

Highlighting the concerning trend of real estate companies facing bankruptcy, Chief Minister Yogi Adityanath had urged officials to devise a strategy to address this issue in the previous year.

The onset of this distressing trend in the state can be traced back to the bankruptcy of leading realtor, the Amrapali Group. Subsequently, the National Company Law Tribunal (NCLT) initiated insolvency proceedings against two major players, namely Supertech and Logix City Developers.

Beyond Noida and Ghaziabad, Bhoosreddy noted that new housing projects were being proposed in smaller towns, including Jhansi, Bareilly, Moradabad, Agra, Mathura, and Vrindavan, indicating the growth of the organised real estate sector.

Among the nearly 2,056 projects currently in progress, more than half were concentrated in the eight districts of the National Capital Region (NCR) of UP, particularly Gautam Buddha Nagar, Ghaziabad, Meerut, and Hapur.

In non-NCR districts, Lucknow accounted for 400 projects, equivalent to 20 per cent of the total ongoing projects.

Since its establishment, UP RERA has issued 8,575 recovery certificates, amounting to over Rs 30 billion, against defaulting builders and developers. RERA was implemented nationwide in May 2017.

Bhoosreddy added, "To date, approximately 3,470 projects have been registered with the Authority. In 2023, nearly 125 new projects have been registered thus far, with 225 projects registered in the previous year."