The UP Real Estate Regulatory Authority (RERA) has decided to constitute a committee to look into the projects which are stalled due to non-payment of installments by the buyers or allottees. Let us inform that UP RERA has decided that now if the house allottee does not pay the installments, then the promoter will have the right to charge interest or cancel the allotment.
It is worth noting that the issue of non-payment of allotment amount was recently brought before the officials of UP RERA. In such a situation, a committee was constituted to complete the twelve pending projects. In whose meeting the UP RERA president said that there is such a provision in section 8.
Please note that non-payment of multiple installments may result in cancellation of allotment of the buyer. Further, he will have to refund only the principal amount after deducting the money paid while booking the flat.
Officials said that there was a clause in the UP-RERA Act that allowed builders to cancel allotment of flats for non-payment of instalments, this was hardly proving to be any relief for them.
This was because in case of such cancellation of allotment, a developer had to pay the full amount to the buyer. Officials said this often affects the pace of completion of projects. Because the developers have to pay from the funds set aside for the construction work.
A RERA official said, “As per a clause in the UP-RERA Act, the builder can cancel the allotment of the flat if a buyer repeatedly delays in paying the installments. In such cases the builder can issue a notice to the buyer demanding installment and penalty amount.”
“If the buyer fails to pay the installment for three consecutive months, the builder has the right to cancel the allotment,” the official said.