Does RERA empower home buyers to complete stuck projects themselves?

Setting a precedent, the Uttar Pradesh Real Estate Regulatory Authority (RERA) for the first time has decided to consider a proposal by defrauded homebuyers to take over and complete a project in Noida that has been delayed by several years. While this is a great move and may set the trend for other homebuyers in stuck projects, arranging funds to complete construction could still pose a challenge, say real estate experts.

UP RERA for the first time has asked over 700 home buyers of Subhkamna Tech Home to come up with a proposal to complete the project they had invested in and get the consent of at least 60 percent buyers within 10 days, Balwinder Kumar, Member of UP RERA bench told Moneycontrol.

The project was due for delivery in 2014. Almost 70 percent of the work on the towers is complete and buyers have claimed they have paid about 80 percent of the amount. The project is located in Sector 137, Noida.

“If the homebuyers are able to get about 60 percent members of their association to agree to the proposal, we will get it examined by the financial consultant of Noida Authority Currie & Browne. The consultant will then discuss it with the concerned stakeholders such as Noida Authority. Once the financial consultant gives its approval and agrees that the homebuyers have the capacity to complete the project and arrange for finances, then we will have no problem in giving them permission,” Kumar said.