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Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has authorized the promoter elegant splendor To complete the remaining construction work under section 8 of Rare Take action.
With the consent of more than 50% of the allottees, the Authority provided rehabilitation facility to complete the 15th stuck project to protect the interest of the allottees and with this 211 allottees of the project will get possession in the next 12 months.
The existing and new promoters will jointly complete the project by 2026 as directed by the authority. The construction of Phase-1 is 65-70 percent and that of Phase-3 is only 10 percent.
The Elegant Splendor project has two phases, with ‘Phase 1’ comprising Towers E, F and G towers and ‘Phase 3’ comprising Towers A, B, C, D and H towers.
The project was registered with UP RERA in August 2017 but could not be completed within the period of valid registration. The registration for Phase 1 and Phase 3 ended on September 3, 2019 and August 22, 2022 respectively.
Both the promoter and the allottees’ association, ‘Elegant Splendor Flat Buyers Welfare Association’, had approached UP RERA to intervene in the matter and facilitate the remaining development works of the phases under its supervision.
The promoter had entered into a Joint Development Agreement (JDA) with Floral Realtech Pvt. Ltd. to facilitate joint completion of both the phases to ensure early possession to the existing allottees.
For Phase-I, the entire permissible extension of registration, i.e. 1 year as per Section 6 of RERA Act and other extension due to COVID-19 pandemic, was waived. For Phase-3, keeping in view the status of construction, the permissible extension of registration was not sufficient to complete the work.
Promoter informed about submission of his application GNIDA ,Greater Noida Industrial Development Authority) for further correspondence regarding the revalidation of the approved map and depositing the prescribed fee.
Based on this, the Authority considered the request of the promoter and the association of allottees to extend their support for the completion of the project under the provisions of Section 8 of the RERA Act read with Section 6 and 37 of the Act.
The Authority has set up a Project Management Division (PMD) at its NCR Regional Office Grade Noida And the completion plan of the project submitted by the promoter with the written consent of more than 50% allottees through their registered association was thoroughly scrutinized through this division.
The Authority was satisfied on the basis of the report of its Project Management Division that the completion plan submitted by the Promoter was acceptable to protect the interest of the allottees and further the objects of the Act.
As per the site inspection report done on 22nd October 2022, the overall physical progress of Phase 1 is 65-70% and Phase 3 is only 10%. The existing allottees pertain to Phase 1 towers which are likely to be completed soon and Phase 3 towers are in nascent stage without any bookings.
There are total 640 in Elegant Splendor Phase 1 and Phase 3 residential units and only 211 units have been sold.
“Our main objective is to protect the interest of all the stakeholders of the stuck projects, especially the allottees. Elegant Splendor is the 15th project in the state, in which we have facilitated a new promoter to complete the balance development works in collaboration with the allottees of the project or alternatively, the upcoming allottees. We are examining the possibility of facilitating completion of some more such projects under the enabling provisions of the RERA Act to encourage construction in stalled projects so as to ensure possession to its allottees. Rajiv KumarChairman, UP RERA.
As per estimates, Rs 239.10 crore can be raised from the sold units of the project and Rs 20.69 crore is due from the existing allottees.
The total cash flow in the project is Rs 260.06 crore and the estimated cost of completing the project is around Rs 219.69 crore under various heads.
RERA has said that the promoter will deposit an upfront capital of Rs 12.50 crore in the next 3 months to GNIDA to pay the revalidation fee for the approved map and use the remaining amount to start construction immediately.
Further, a separate account of the project shall be maintained in the name of the project and all future receipts, if any, from the allottees of the project and the project financiers shall be credited to this account.
The money in this account shall be used only for the purposes of construction and development of the project in consonance with the relevant provisions of the RERA Act and as per the relevant direction of the Authority. Both the promoters will settle the existing debt of any financial institution from their own resources only by February 2023.
The authority will transfer the project to the special category of projects under rehabilitation and monitor its progress quarterly. The authority will appoint a third party construction consultant to monitor the physical and financial progress of the project.
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