Construction of Jaiprakash Associates’ (JAL) Jaypee Kalypso Court (Phase – II) resumed on Saturday under the Uttar Pradesh Real Estate Regulatory Authority’s (UP-RERA) new ‘rehabilitation model’ where buyers and promoters work together towards the completion of the project.
“UP-RERA has been successful in implementing this approach to resolve the disputes and revive a stalled project. The project ‘Jaypee Kalypso Court’ of JAL is the first such project in U.P. RERA that has passed through this approach and the promoter has now commenced construction work in the project from today,” said Rajive Kumar, chairman, UP-RERA.
Under the new joint development devised by the authority, the promoter continues to be responsible for completing the project and delivering on its obligations, while the homebuyers through their collective are responsible to ensure the payments made by them are being deployed only on the project.
The authority will review the progress of the project on a quarterly basis. Further, a Chartered Account shall be appointed for the concurrent audit of the project to completion. The authority on its website will shift the project to the special category of projects under rehabilitation as per the provisions of Section 8 of the RERA Act.
In July 2020, the authority had authorized JAL with the consent of the Progressive Welfare Society (Association of Allottees) of the project to undertake the completion of the remaining development of the project.
In all, 274 units out of the total 304 sanctioned units in the towers 7, 8, 11, 12 have been sold and 30 units are yet to be sold. On its part JAL committed to infuse Rs 45 crore into the project and will complete the project in about 12-15 months from the date of starting work in the four towers in line with the Pert Chart.
Balvinder Kumar, member, UP-RERA said, the authority is hoping that many more stalled projects can be completed if the AoA and promoter can mutually work together under this model towards the completion of the project”.
Based on the audit done by Currie & Brown, it was reported that 40 projects of Gautam Buddh Nagar district have been found as net positive surplus and are viable for completing the projects under this model in the future.
The authority is planning to extend this approach to various other projects in the state where the projects are stalled either due an impasse between the promoter and the homebuyers or the completion date as declared by the promoter has lapsed including the one-year extension permissible under section 6 of the RERA Act.