Ansal API Narrowly Escapes UPRERA Action On 3 Projects

New Delhi: Real estate firm Ansal Infrastructure and Properties Ltd has narrowly escaped deregistration, penalty and other legal actions by UP RERA for three of its projects in Lucknow:

Ansal API Pocket 2, Sector J, Sushant Golf City (RERA Id- UPRERAPRJ9594) 

Ansal API Pocket 3,Sector A, Sushant Golf City (RERA Id-UPRERAPRJ10009)

Ansal API Pocket 4, Sector P, Sushant Golf City ((RERA Id- UPRERAPRJ7122)

The company, in a forensic audit conducted by M/S Currie & Brown, was accused of withdrawing excess amount of Rs 23.6 crore from money received from buyers of Ansal API Pocket 2, Sector A, Sushant Golf City in violation of the provisions of the Real Estate Regulation and Development Act. Similarly it was accused of over withdrawing Rs 15.6 crore and Rs 8.6 crore from Pocket 3 and Pocket 4 projects respectively.

Show cause notices were served on the builder by UPRERA asking them why the projects should not be deregistered. It was only after the builder assured of fresh additional commitment of funds and fresh deadline for the projects that UPRERA has decided to put deregistration on hold for 4 months in view of ‘overall interest of all the homebuyers’ and undertakings given by the promoter.

Ansal API has given a commitment to UPRERA that the necessary funds required to complete Pocket 3 project will be infused by 31 December 2019.

It has also promised to start work on Pocket 4 project by January 2020 and complete it by December 2022.  

As for Pocket 2 project, the builder explained that the work on the project is 81 percent complete ‘thereby indicated that the intention of the company is sincere and clear’. The rest of the project is held up due to encroachment of land by villagers and court cases filed by some local residents.  

The Real Estate Regulation and Development Act states that at least 70 percent of the money received from customers of a project must be kept in a separate escrow account of the project and money can be withdrawn in proportion of the percentage of work completed in the project.

 

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