The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has decided to grant an additional nine months of registration extension for projects with first registration ending December 31, 2021 or earlier. In the NCR region this extension is of nine months and for six months in a non-NCR region.
The decision was made to remove restrictions and facilitate the development of stagnant real estate projects. This will speed up construction and help the allottees of these projects deliver their homes within a reasonable time frame.
However, the extension is subject to the authority’s close monitoring of these projects and will be granted under certain conditions.
If the project completion date is after 31 December 2021. The developer will be instructed to speed up development work and complete the project within the existing registration period. These extensions can only be granted at the request of the promoter of the project, accompanied by an affidavit. The affidavit states that the developer must complete the project during this extended registration period. Also provided that the developer presents a compelling financial plan from project financing or from own sources to complete the project.
Authorities said giving a little extra time to complete projects would help complete a series of projects that would result in a large number of pending home buyers being handed over for delivery.
Sign MOU if developer is not in state to complete project
Before taking any decision on the promoter request, the authority first checks the physical progress of the project. The project must be verified through its technical division to ensure the authenticity of the promoter’s commitment in this regard.
In the event, the promoter is unable to complete the project during the additional extended registration period. Then he needs to enter into an agreement or memorandum of understanding (MOU) with the Association of Allottees (AOA). In addition, he also needs to contact the authorities for additional time to complete the project in accordance with the terms agreed between AOA and the developer.
The authority, after receiving such a joint request from the developer and the AOA, makes an appropriate decision to allow the developer to complete the rest of the project.