Patna: The Real Estate Regulatory Authority (RERA), Bihar, on Friday passed an order providing relief to thousands of flat buyers stuck in stalled projects.
The order addresses the issue of ‘lapsed’ building projects, where promoters fail to complete the project within the stipulated period.
A double bench of RERA, comprising chairman Vivek Kumar Singh and member S D Jha, delivered the order related to the ‘IOB Nagar Block B’ project of Agrani Homes Private Limited.
They endorsed the proposal from the buyers’ (allottees’) association to complete the remaining development work themselves.
The matter was referred to the state govt as mandated by Section 8 of the RERA Act. Once the state govt responds, the project will be handed over to the buyers’ association, which will get it registered with RERA Bihar and proceed with the completion.
This decision is expected to bring relief to buyers of other stalled projects as well, allowing them to form associations and complete their projects through a similar legal process.
Several petitions were filed by homebuyers, including Shweta, Geeta Kumari, Kriti Kumari, Mukesh Kumar and Dr Rana Nagendra Kumar Singh, who had paid amounts ranging from Rs 8.25 lakh to rs 27.19 lakh to Agrani Homes Private Limited. However, the promoter failed to complete the project on time.
“The promoter became a defaulter by not paying the refund amounts mentioned in previous orders related to the same project,” the Authority said. The project’s registration lapsed on August 31, 2019, and the promoter showed no interest in seeking an extension or completing the work.
The promoter neither appeared in the complaint case nor responded to the notices sent for hearings on April 24, July 3, September 18 and October 16. Given the circumstances, the Authority decided the case based on the available facts and records.
The homebuyers had submitted a self-declaration about forming the Agrani IOB Block B Owners’ Association and provided an estimated cost of the remaining construction work through an empanelled engineer.