‘Buyers investing in unregistered projects not eligible for justice’

GREATER NOIDA: Homebuyers, who have invested in realty projects that are not approved by any competent agencies such as Noida and Greater Noida authorities, will not be able to seek justice in case of need, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has warned.

The warning has come in the wake of rising number of complaints against projects not approved by any government agency. The real estate regulator has advised buyers not to invest in a realty project if its building layout is not approved by a competent agency.

UP-Rera has received around 1,000 complaints from across the state about projects, which are not approved. Some complaints are from Gautam Budh Nagar district. The provisions of the Real Estate (Regulation & Development) Act, 2016, apply only to the realty projects with area of 500 square metres or more and with eight apartments or more in areas approved by any government agency. “The section 3 of the Rera Act empowers the regulatory body to direct a developer to register a realty project. But the project’s building map should be approved by a government agency. If it is not approved by any government agency, it cannot be registered,” Balvinder Kumar, member of UP-Rera, said.

Many small builders are still constructing flats on village land without approvals in Gautam Budh Nagar district and the authorities are unable to act. Buyers looking for cheap flats invest in such projects.

“But if there are legal problems in such projects or the builder misuses the funds, Rera will not be able to help because here even Zila Panchayat cannot approve a building map. So, it is advisable that buyers should stay away from such projects,” Kumar said.

In context of Noida, Greater Noida and Yamuna Expressway areas, buyers need to be extra cautious because no other government agency, except Noida, Greater Noida and Yamuna E-way authorities, has power to approve a building layout plan of a realty project. In neighbouring Ghaziabad or Bulandshahr, government agency called Zila Panchayat (apart from Ghaziabad Development Authority or Bulandshahr Development Authority) can approve maps of buildings meant for residential purposes in villages or areas falling in its jurisdiction.

In January 2015, the UP government had abolished panchayati raj system in Noida and Greater Noida, stating as per UP Industrial Development Act, under which Noida and Greater Noida were created, villages cease to exist under notified areas of these authorities.

“It means homebuyers should not invest in realty projects that come up in villages in Noida, Greater Noida and Yamuna E-way, where Zila Panchayat also cannot approve a map of realty project. If a buyer invests in an unapproved project, his investment will not be protected by Rera,” Mangeram Bhati, an advocate at Gautam Budh Nagar district court, said.