The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has given another nine-month extension for registration of projects in the NCR region whose original or extended registration expires on or before December 31, 2021. This extension, however, is subject to the Authority’s strict monitoring of such projects; if a project’s completion date is later than December 31, 2021, the promoter will be required to hasten development activities and complete the project within the existing registration period.
The NCR-based realtors have welcomed the move. For instance, Manoj Gaur, CMD, Gaurs Group, and Vice President – North, CREDAI National, says, “This move will surely help the realty sector which is facing an unprecedented situation. The sector needs a helping hand in the wake of the challenging times faced by every industry. The serious players are doing every bit to speed up and finish projects on time, but the multiple waves have taken a toll. We are trying our best to tackle the price rise and labour situation. This is definitely a welcome move by UPRERA.”
It may, however, be noted that such an extension would be granted only upon the promoter of the project submitting an application with an affidavit that it would complete the project within the extended registration period, as well as on the condition that the promoter submits a convincing financial plan to complete the project, either through project finance or from its own resources.
“The lockdown of 2021 due to the second wave of COVID-19 pandemic, besides causing fund crunch, has also crippled the supply of manpower and raw materials in the real estate sector. The recent news of UPRERA granting extension to real estate projects by 9 and 6 months for NCR and Non-NCR regions, respectively, is a well-thought out move by the authority towards ensuring smooth execution and completion of projects in the State, thereby benefiting millions of homebuyers. However, we hope the UPRERA grants a general extension like the first wave instead of the conditional extension which will benefit more projects in the State. Also, the monitoring conditions imposed by the authority must be liberalised so as to ensure easy compliance,” says Siddharth Katyal, Director (Planning & Strategy), Omaxe Ltd.
The Authority has granted a second extension for project completion dates in response to the pandemic. It had granted a six-month extension during the first wave last year. “It would be beneficial to developers as COVID-19 has had a negative impact on construction activity. It would offer projects some breathing room as they gradually resumed operations. It will help smooth out operations because projects had to deal with concerns such as labour availability and supply chain issues,” says Amit Modi, Director, ABA Corp & President (elect), CREDAI Western UP.
If the promoter cannot complete the project within the extended registration period, it will be required to enter into an MoU with the Association of Allottees (AOA) and apply to the Authority for additional time.
“To avoid a catastrophic collapse of the real estate sector as a result of COVID-19, immediate remedial action is required. Under the current circumstances, the primary goal is to address homebuyer concerns by providing appropriate regulatory relief to real estate projects, resulting in a win-win situation for all stakeholders. It will allow developers to complete projects on time, allowing homebuyers to receive their booked homes within the revised timeline,” says Harvinder Singh Sikka, MD, Sikka Group.