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‘Delink registration of property from dues recoverable from developers’

  • RERA plea to UP Govt

The UP RERA has suggested delinking the unpaid dues of the builder to the government to the registration of properties. If the present imbroglio were to be continued, the official machinery would not be able to recover its dues and the property buyers would not be able to register their properties. The RERA has made some recommendations to the UP Government in this regard. It asked the Government of UP to take suitable measures to solve the problems of over two lakh property buyers.

As per the existing rules, the project developer, upon clearing all dues to the government, will be given a NOC by the relevant urban development authority finance wing. The Occupancy Certificate will be issued to the projects that obtain the NOCs. In view of the upheavals in the real estate sector, several realtors have failed to obtain the OC. As a result, the registration of properties could not be accomplished. In a survey conducted by the UP RERA, in all 44000 units in 200 projects could not be registered so far. Similarly, 1.25 lakh units were not given possession. Under Section 32 of the UP RERA Act, it made several recommendations to the government. Since realtors are not in a position to clear their dues to the authority, the RERA has asked the government to delink the registration of property with no dues certificate.

The RERA urged the government to implement the decision to protect the interests of buyers of property. Instead of holding the project as collateral security, it suggested the authority to hold the builder’s own property as security.

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