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TCP to complete projects in Faridabad

HRERA making it clear and shifting the onus on Town and Country Planning of completion of project clearly said, that since the sanctions and approvals are done by TCP, they are bound for completion of project.

RERA and Insolvency Code
 


Further securing the right of homebuyer, HRERA settled the controversy with IBC, 2016 that homeowners too have vested right in the project and their interest can’t be jeopardised nor transferred like other financial creditors.
 

Also Read- ROLE OF TOWN AND COUNTRY PLANNING (TCP) IN RERA CASES


Now the big question before official liquidator would be who will precede whom RERA vs. IBC Amrapali is already fighting crisis as one by one all their properties are being attached. While the HRERA Gurugram Authority has itself took the completion of one project Greenopolis of Gurugram. It will be interesting to see how TCP finishes the mammoth task of completing the township in Faridabad.

Recent Amendment Insolvency and Banking Code in Aug 2018 gave allottee the right of financial Creditor who too can file for Insolvency application under Section 7 of the IBC , 2016. The Corporate Insolvency and Resolution Process (CIRP) somewhere takes 6 months for completion.

 

Also Read- COMPLAINT M & N CONFUSION IN RERA PUNJAB


The applications can be filed in any of the NCLT having the jurisdiction over the area concerned. In case the CIRP fails the liquidation process starts. UPRERA on the same note has asked Subhkamna Tech home to come up with a proposal to finish the project including the consent of at least 60% buyers. Even MP RERA has done the same for Indore based Project where the promotor has been absconded for 3 years.

Sec 8 of the RERA facilitates Authority to come together and create proposals where homebuyers can come together and finish unfinished projects. But who will decide the share, amount, quantum of funds required - that’s where the challenge lies. But Complete consensus should be there between homebuyers, banks, and builders regarding financial arrangement . 

 

Also Read-  HARYANA RERA ORDERS REFUND AT 10.45 RATE OF INTEREST


RERA can take projects only where 10-20% work is to be completed. Rest, if the project is to be started from scratch or from the structural, then it will be extremely difficult and improbable to complete the project.

For ready reference, Kindly see section 8 of the Act :
“Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the Authority:

Provided that no direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this Act:

Provided further that in case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works.”
 

RERA Act and Insolvency Connection

Also Read- DELAY COMPENSATION IN HRERA PANCHKULA


It will be clear in coming days how RERA nixes with Insolvency Code 2016 for the betterment of homebuyers and owners.

Till then stay tuned for RERA latest news and updates. Dial 99888-17966 for more info on the subject.

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