MI Builders project may lose RERA registration

LUCKNOW: The UP Real Estate Regulatory Authority (RERA) has sent a notice to developer MI Builders for cancelling the registration of its project MI Central Park Phase -1 in Sarojini Nagar on charges of misrepresenting facts for getting the project registered with the regulatory authority.

Abrar Ahmed, secretary, UP RERA, on Monday initiated the process of cancelling registration of project by sending a notice to MI Builders seeking reply within 30 days.

“After proper investigation it has come to light that MI Builders misrepresented facts before UPRERA and got its project (MI Central Park phase-1) registered with the RERA. Notice to cancel registration of the project has been served on the developer with 30 days time to reply,” said Ahmed.

According to RERA secretary, discrepancies came to light on complaint of Dhan Prakash Budhiraja, whose wife Nelu Budhiraja owns 30727 sq meter land in Sarsawan, Sarojinagar.

Dhan Prakash lodged a complaint with the UP RERA that in 2015 and 2017, the MI Builders entered into a builder agreement with his wife for 16623 sq m land.

However, the developer misled the RERA authorities and got its MI Central Park phase -1 project registered with the regulatory authority by showing 31737 sq m land for the project.

After furnishing false information about total land for the project, the developer procured UP RERA registration number

UPRERAPRJ3035.

According to RERA secretary, after receiving complaint five hearings were conducted between January and March this year during which complainant and the developer presented their view points and facts before the regulatory authority.

During these hearings it came to light that the developer furnished false information about project land, said RERA officials.

According to by-laws of the RERA, if the developer fails to reply adequately within 30 days, then the regulatory authority will cancel the registration and impose ban on booking of flats.

In such a case, the developer will not be able to take deposits from homebuyers.

It may be pointed out that the UPRERA has identified 397 projects of developers in the national capital region (NCR) which have violated court’s order related with handing over of possession of flats.

These promoters have failed to hand over flats to homebuyers within the deadline promised by them and affidavits submitted by them in court.

The promoters have been issued a showcause notice asking reasons for non-compliance of the court order and to furnish a suitable reply before the authority.

Under Section 63 of the RERA Act, if the replies are deemed to be inappropriate then penalty of five percent of the total project cost will be levied on developers.

In the second phase, the authority will summon other promoters to take up the issue of non-compliance of court orders with them.