UP RERA Initiates Multi-Stakeholder Strategy for 18 Stalled Projects
Uttar Pradesh RERA tackles long-standing delays by launching coordinated efforts across 18 stalled real estate projects in Noida and Greater Noida, affecting over 10,000 homebuyers. This fresh strategy blends legal reforms, financial restructuring, and third-party developer involvement to handle complex disputes.
Recent Case Highlights
- Nimbus Projects Sunworld Residency (Sector 168): Taking over from defaulting developers, Nimbus commits to clearing ₹50+ crore dues to Noida Authority while resuming construction for 1,000+ units.
- Theme County Sector 115 Project: Pending payments and RERA case resolutions precede restarting infrastructure work.
- Apex Group Acquisition: Proposed takeover of 16 Supertech projects through co-development agreements, contingent on legal case withdrawals and partial dues settlement.
Co-Development Framework: Key Requirements
- Dues Clearance: New developers must clear all pending dues with Noida Authority to eliminate financial liabilities for homebuyers.
- Funding Assurance: Securing construction budgets for both completed and unsold units through institutional financing, including RERA-related escrow accounts.
- Litigation Management: Withdrawals of pending legal cases (particularly against Noida Authority) to create implementation feasibility for approved co-developers.
Handling Complex Scenarios
While RERA's Section 8 has historically focused on projects nearing completion – with only 3-4 cases successfully revived in UP to date – this expanded initiative addresses mid-development stagnation through:
- Resolution Officers: Proposed dedicated authorities to evaluate project viability and coordinate multi-institutional negotiations.
- IBC Integration: Adapting insolvency frameworks for debt resolutions, particularly for legacy projects hamstrung by non-performing assets.
- State-Level Packages: Building on Uttar Pradesh's 2023 rehabilitation policy, offering regulatory relief for promoter-led resolutions.
Buyer-Centric Outcomes
Developers must:
- Restore RERA-compliant timelines.
- Ensure transparency in contract assignments.
- Implement quality assurance protocols.
This coordinated approach signals a shift from previous RERA strategies that often either refunded deposits or left projects in legal limbo. While legacy projects like Amrapali demonstrated full authority takeovers, new frameworks aim for financially viable resolutions through third-party interventions.