UPRERA Cancels Registration of Festival City Phase-I in Gautam Buddha Nagar
New Delhi: Acting tough on rogue developers, UP-RERA has de-registered real estate project Festival City Phase-I in Gautam Buddha Nagar. The developer of the project is Mist Direct Sales Pvt Ltd, a sister concern of Bhasin Group.
UP-RERA has also placed the developer Mist Direct Sales Pvt Ltd in its 'defaulters list'. The bank account for the project has been frozen by the authority.
A show cause notice was slapped on the developer in March 2019 by the authority asking it to explain why the registration of its project should not be cancelled.
As many as 19 buyers of the project had complained to the authority that there were major deviations in the actual project from the proposed design of the project. They had also said that more than 85 percent of the work in the project was left even after much delay. They had also complained that their hard earned money was being swindled by the developer. They also said that the promoter was arrested by the Registration Department for its inability to pay the stamp duty for the project.
The authority also found that the builder had given proper updates on the construction of the project as required by the authority.
In its reply in April 2019, the promoters said that Bhasin Group will complete the construction by March 2020. They claimed that they have invested Rs 16.22 crore in the project.
Later in May 2019, the promoter said that the total cost expected to complete the project is Rs 373.83 crore. It also said Rs 157.90 crore has been invested by it in the project. The promoter assured that it will sell various land parcels in Delhi NCR to arrange funds for the completion of the project including its land in Delhi and in Greater Noida.
Basis these assurances and clarification, the authority had then decided to postpone its decision of deregistration order for four months. It had asked the promoter to give an update of the project in October 2019.
However, in November 2019 it found that the promoter had not even opened an escrow account and failed to build the project according to the plan proposed by them.
The authority has also ordered the photo of the promoter to be put on its website.