Desperate to improve liquidity, certain developers are coming up with various explanations to demand money from the buyers. The most common tool that is being used by the developers in their favour is the UP-Rera’s September 2019 order which states that if occupation certificates (OC) are pending with the authorities beyond eight days, the project will be considered “deemed approved”.
Several builders have annexed the said order in their recent communication with the buyers, asking them to pay up the final amount by claiming that their project is “deemed complete”.
“But at the same time the customer relationship management team of the developer also said that executing the registry will take some more months. They are saying the registry matter is pending before the apex court and asking me to make the final payment,” said Shakti Singh, who bought a unit in a Greater Noida project in 2016.
“After going through the papers, I realised that the registry of the flat is also important. I asked the builder’s representative to give me clarity on the timeline for the registry and he assured me to get back with complete details,” Singh added.
In the meantime, Singh found out that the registry has been withheld by the Greater Noida Industrial Development Authority on account of default on payments by the developer.
President of builders’ body Credai-western UP, Prashant Tiwari said, “Fence sitters are interested in buying property at present and sentiments have improved due to the festive season. The UP-Rera order is self-explanatory and leaves no doubt for confusion. It is an order by the real estate regulatory authority and there is nothing wrong in sharing it with buyers.”
GNIDA’s CEO Narendra Bhooshan, however, said that existing and prospective buyers need to tread with caution. “We all have seen the Rera order. That is a general order and needs to be seen in context. Buyers should ask the developer to produce a written order by the regulator, which states that their project has been granted a deemed completion certificate.”