UP RERA registers record 36 projects in September with estimated value of Rs 3600 crore

In NCR, 7, projects were registered in Ghaziabad followed by Gautambuddha Nagar and Meerut where 3 projects each have been registered. (Representative image)

Leaving behind the pandemic blues, the real estate sector is rebounding and the results are visible not only from the increasing demand but also from the launch of new projects. Uttar Pradesh Real Estate Regulatory Authority (UP RERA) registered 36 new real estate projects from across the state in September alone. This is the highest number of projects being registered in a month which is a new record in itself.

The new projects include 32 residential and 4 commercial projects and the estimated value of these projects is worth Rs 3648.35 crore. The numbers of proposed units to be constructed in these projects are 8116, of which 6931 are residential and 1185 commercial. The registration trends suggest that developers are now moving towards non-NCR districts as 24 of the 36 projects have been registered in non-NCR districts. 12 new projects have been proposed in the NCR district.

In NCR, 7, projects were registered in Ghaziabad followed by Gautambuddha Nagar and Meerut where 3 projects each have been registered. In the non-NCR districts, 4 projects each were registered in Lucknow and Agra while 3 projects each in Kanpur, Vrindavan and Moradabad, and 2 projects in Gorakhpur. One project each was proposed in Jhansi, Varanasi and Gorakhpur.

Presently, more than 3300 projects are registered with UP RERA.

In the past few years, the UP RERA has taken tough decisions against promoters and developers to secure home buyers' interests. Recently, it levied a penalty of over Rs 1 crore 39 lakh on 13 builders for non-compliance with its orders related to homebuyers' welfare. The real estate regulator also imposed a fine of Rs 1.5 crore on nine developers a few days ago after they failed to comply with the authority's order and did not return the money that buyers invested in those projects.

UP-RERA said that it has intensified action against all such promoters who have not complied with the orders. The authority has urged the developer community to follow the model agreement and has directed them to utilise the funds of the escrow account in the construction of the project and not divert.

It may be recalled that UP-RERA began investigating the projects of numerous builders about two years ago and even subjected some builders to forensic audits. During its investigations, UP-RERA also found that builders diverted around 70-80% of the fund from one project to another. Approximately 1.25 lakh buyers are still looking for their homes in the state today due to the negligence and default of the developers.  

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As per UP-RERA rules, builders cannot invest money from one project into other projects. Of the total amount deposited by the buyers, 70% will have to be spent on the construction of the same project and the remaining 30% can be spent on other expenses.

UP RERA came into existence on 27 October 2016 and aims to protect the interest of homebuyers and promote investment in real estate in the state of Uttar Pradesh.