25% of 132 Noida housing projects unviable

The Uttar Pradesh real estate regulatory authority (UP Rera) said Wednesday that about 25% of the 132 housing projects, in Noida and Greater Noida, which had been taken up for audit to ascertain project status, have “serious issues”.

The Rera had, in August last year, asked consultant firm Currie & Brown to audit 132 housing projects to understand why the respective builder failed to deliver flats as per promise and whether the builder would be able to deliver in future.

These were based on homebuyers’ complaints regarding delays in getting the flats they had invested in.

After the audit these projects, the Rera took up a detailed review of each project, along with the respective builder as well as officials of the Noida, Greater Noida and Yamuna Expressway authorities.

“After audit and subsequent review with builders and officials, we have come to know that 25% of the housing projects, out of the 132 reviewed, have serious issues. We are contemplating legal action against builders whose projects fall in this category. We will de-register these projects as a punishment if the builders do not address the issues,” Rajive Kumar, chairman of the UP Rera, said.

According to officials, the audit was completed in December, 2018.

“The report by Currie & Brown said that 25% of housing projects out of the 132 do not have any issues, 50% have multiple issues pertaining to flow of funds and delay in delivery but are still viable and can be finished and delivered to homebuyers, and 25% are riddled with grave concerns. This means that 75% of these projects can be delivered, but we need to worry about the 25% which have serious issues,” Kumar said.

The UP Rera issued notices to builders whose projects have serious issues last month, and directed them to submit replies by the end of this month.

However, officials did not reveal the names of the projects or developers associated with them.

“If they do not file replies and show no desire to address the genuine concerns then the Rera will start de-registering their housing projects, which means that the builder will not be able to sell flats in the project,” another Rera official, not authorised to speak to the media, said.

First Published: Feb 28, 2019 04:58 IST