Only 15% Of Rera’s Recovery Certs Realised In Ghaziabad, Real Estate News, ET RealEstate

July 13, 2023

GHAZIABAD: Only 15% of the recovery certificates issued by the real estate regulatory authority to erring developers have been realised in Ghaziabad.

Till June, Rera has issued 781 recovery certificates worth Rs 142 crore, of which only 117 certificates, or 14.9%, worth Rs 17.3 crore have been realised, officials said.

Under Section 40 (1) of the UP Rera Act and Rule 23, the authority has the power to issue notices to developers to recover dues, like arrears of land revenue. However, it is the responsibility of the district administration to ensure that the amount is realised.

On Wednesday, Ghaziabad district magistrate RK Singh said, “Of the 781 recovery certificates (RCs) issued to defaulting developers, 169 projects which have been issued the certificates worth Rs 63.42 crore are either in the National Company Law Tribunal (NCLT) or in different courts and there is nothing we can do about it.”

The remaining 495 RCs, worth Rs 61.63 crore, are still unexecuted in the district.

According to Singh, the problem with executing most of these recovery certificates was that most of these developers have their official addresses in Delhi, Noida or in other parts of the state even though their projects were in Ghaziabad. “Legally, the district administration is not within its rights to serve any notices, like RCs, to developers residing in other districts,” Singh added.

Supreme Court lawyer Prashant Kanha, who deals in real estate cases, however, said that such notices could be served by a district administration through the collectorate of the district where the defaulter is headquartered or resides.

“It is true that the magistrate of one district cannot serve RC citations to defaulting developers residing in another district, but there is a provision under the Revenue Recovery Act, 1890, that allows a collectorate of one district to serve notices or challans to defaulters through the collectorate of the district where the latter resides,” Kanha said.

The real estate regulatory authority, he said, could exercise its powers under Rule 24 of the UP Rera Act and initiate the execution proceedings by seeking compliance reports from a district collector on the progress of enforcement of the recovery certificate.

“Unfortunately, it seems that the UP Rera, and even district administrations in the state, have become legal shock absorbers for defaulting developers. It explains why the execution of RCs is so low not only in Ghaziabad but also the entire state,” Kanha added.

T Venkatesh, the acting chairman of UP Rera, said told TOI that as per the provisions of Section 40 (1) of the UP Rera Act and Rule 23 of UP RERA Rules, the regulatory authority issues recovery certificates to a district administration concerned who then enforce the recovery orders as arrears of land revenue as per the provisions of UP Revenue Code, 2006.

“Rera sends reminders every month to district administrations to expedite recoveries and has got desired support from the chief secretary and commissioner, Meerut, in this matter. To date, the demand of Rs 1,200 crore in almost 4,615 matters has been discharged either through the recovery of recovery certificates via district administration or through a settlement between the parties in the state,” Venkatesh said.

  • Published On Jul 13, 2023 at 08:39 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment