UP RERA decided to deregister the project after it found serious financial irregularities and cases of double allotment.
In a first, Uttar Pradesh Real Estate Regulatory Authority has deregistered a project in Noida after it found serious financial irregularities, diversion and siphoning of funds and cases of double allotment, a senior UP RERA official said.
"Deregistration order was served based upon the information collected, site inspections made, complaints registered in RERA and non-compliance of the provisions of RERA Act. The decision was taken after the builder failed to respond to warnings and notices served to them," said UP RERA Chairman Rajive Kumar.
Six more projects are under scrutiny, officials said.
In its order passed on Wednesday, the authority decided to deregister Unnati Fortune Holdings Ltd's project Aranya Phase 3, 4 and 5 under Section 7 of the RERA Act.
The process after deregistration will commence in consultation with the State Government. UP RERA has found that there were severe financial irregularities, diversion and siphoning of funds and cases of double allotment in the project, they said.
The project's value is over Rs 1,500 crore. It commenced in 2007. It is located at Noida, Sector 119, UP RERA said in a statement.
The inspection team of the Authority had inspected the site and found that out of eight towers that had to be constructed, only four were in completion stage. Construction of villas too had not begun, it said.
Earlier, the Authority had issued deregistration notices under Section 7 of the RERA Act to seven builders for failing to meet their commitments to buyers invested in 14 projects and approximately 4800 residential units.
Developers who had been served notices include Primrose Infratech for Primrose Ryne project, PSA Impex for Sampada Livia, MSA Developer for Circuit Heights, Greenbay Infrastructure for Greenbay Golf Homes & Golf Village, Intellicity Business Park for Intellicity project, Mist Direct Sales for Festival City Phase 1,2,3 and Unnati Fortune Holdings Ltd for the Aranya Phase 3,4,5. The registrations for projects Aranya Phase 1 and 2 have lapsed.
"After deregistration, there are several options before the Authority. Buyers could be given the first right to complete the project. If they are in a position to do so, the Authority will develop the mechanism to supervise," said Abrar Ahmed, Secretary, UP RERA.
"Over 13,000 complaints have been formally filed with UP RERA and almost 7000 of them have been disposed of," Rajive Kumar had told Moneycontrol in an exclusive interview earlier this month.Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
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