State Editions

Yogi to builders: Ready 50K flats in three months

| | Lucknow | in Lucknow

The state government directed real estate companies and builders to ensure that possession of 50,000 flats be given to homebuyers within the next three months. 

The government said that if real estate companies failed to deliver, they would face tough punitive action as per provisions of Real Estate Regulatory Authority (RERA) and Indian Penal Code (IPC). 

Hearing the petition of investors and home buyers, the Supreme Court had already directed a major real estate company to deposit Rs 2,000 crore with the court by October 27. The court also prohibited promoter and directors of the company from going abroad.

On Tuesday, Chief Minister Yogi Adityanath summoned promoters of real estate companies and Chief Executive Officers (CEO) of NOIDA, Greater NOIDA and Yamuna Expressway Development Authority to review progress made by companies towards completion of flats.

Briefing media persons, Urban Development and Parliamentary Affairs Minister Suresh Khanna said that the CM said that real estate companies must deliver 50,000 flats to homebuyers complete in all respect in the next three months. 

Khanna said that CEOs of the three authorities had been directed to appoint an expert agency for the resolution of dispute within the next month. He added that the Chief Minister would himself review the situation after three months.

“All options to take action against real estate companies are open for the government. So far, 13 FIRs have been lodged against real estate developers and builders,” the minister disclosed.

Earlier, on July 23, the CM, while addressing a conclave of Confederation of Real Estate Developers’ Association of India (CREDAI), in Lucknow had expressed disappointment over irregularities in the real estate sector. He had said that the rift between homebuyers and realtors was widening and to bridge the gap, the government needed to take stern steps.

“Despite making full payments, homebuyers were being harassed and not getting timely possession of homes. This has resulted in a loss of confidence among buyers. To bridge the gap, the government will have to take strong steps,” the CM had said. 

Yogi pointed out that gaining confidence of potential buyers was a big challenge for real estate industry and business could run profitably only if there was trust among consumers and  builders. 

The CM had urged builders not to leave any project incomplete. He reminded that in Noida, there had been several cases where builders ran away with the money and the burden fell on the government. 




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