The Uttar Pradesh real estate regulatory authority (UP Rera) has decided not to encourage refund of investment to homebuyers in housing projects that have a potential of getting finished and delivered.

“We are reviewing the conditions of those housing projects that are registered with us against which homebuyers have filed complaints. We have decided not to encourage refunds in housing projects which can be finished and delivered by December-end,” Rajiv Kumar, UP Rera chairman , said.

The Rera is reviewing 132 housing projects in Noida and Greater Noida after homebuyers’ complaints. The UP Rera has called a meeting of Noida, Greater Noida and Yamuna E-way authority to review projects. It has called builders too.

“If we keep ordering refunds then this can affect the project due to fund crunch. If we can resolve 50% of complaints by reviving a stuck housing project we will not allow refunds so that the builder can finish the project,” he said.

The UP Rera is of the view that if every buyer starts seeking refund of his/her investment then a majority of buyers will want a refund rather than waiting for possession. If a builder has completed the civil work but is yet to do the finishing then he has already spent much of the funds collected from buyers.

The chairperson added that if the UP Rera directs the builder to refund, the latter will not have funds left. The key objective of the Rera is to ensure that stuck housing projects get delivered, Kumar added. In 631 cases, the deadline for projects was till February 7, while completion date for another 124 projects will expire in 3 months.

First Published: Feb 25, 2019 02:55 IST