Uttar Pradesh Real Estate Regulatory Authority To Auction Unsold Flats Of Defaulting Builders To Pay Back Investors
[ By Bobby Anthony ]The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has decided to auction unsold flats of defaulting builders in order to repay investors seeking refunds after delayed housing projects.The development would come as a major relief to lakhs of aggrieved buyers who are forced to wait for possession of their homes for years together.UP RERA is also expected to float...
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has decided to auction unsold flats of defaulting builders in order to repay investors seeking refunds after delayed housing projects.
The development would come as a major relief to lakhs of aggrieved buyers who are forced to wait for possession of their homes for years together.
UP RERA is also expected to float a portal for the global e-auction of unsold properties of cash-strapped builders who have been issued recovery notes.
Incidentally, a recovery note is a notice sent by RERA which seeks refund of money owed by homebuyers by defaulting developers.
However, such recovery notes are often not honored by defaulting real estate developers.
As a matter of fact, it has been revealed that none of the 660 recovery notes sent to builders through the district administration in Gautam Budh Nagar has been honored by the defaulting developers.
The recent decision to auction unsold inventories of such builders is the consequence of recovery notes which went dishonored.
This is expected to affect all developers against whom buyers have moved UP RERA and they stand to lose their unsold inventory to refund buyers who wish to exit their delayed projects.