Crackdown to begin on April 7 and retrieve Rs 503 crore from 101 builders.

NOIDA: The Gautam Buddh Nagar district administration stressed that developers who have received notifications from the Uttar Pradesh real estate regulator must pay back more than Rs 500 crore before announcing that it will start a crackdown on real estate defaulters on Friday.

District Magistrate Manish Kumar Verma, who assumed responsibility last month, announced that “munaadi” (drumbeat) actions against the builders will be taken in the coming two days to recoup unpaid fees owed to the Uttar Pradesh Real Estate Regulation Authority (UP RERA).

According to Verma, coercive measures, such as the attachment and sale of the defaulters’ property, will thereafter be taken in accordance with the law once the defaulters have been further “identified and shamed.”

The National Company Law Tribunal has received applications for insolvency from seven to eight builders, therefore the total amount of debt for which recovery certificates (RCs) have been granted is over Rs 1,700 crore, but the “recoverable” amount is just Rs 503 crore (NCLT).

“There are over than 1,700 RCs, and recoverable debts total more than Rs 500 crore. We are not currently working on RCs that are the subject of litigation or that have had their progress delayed by a judge. Every defaulter builder have been identified, and we are taking steps to recover from them, beginning with “munaadi,” “said Verma.

He claimed that the government had previously taken action in some instances, sealed the properties of defaulters and that it would now reexamine their cases, attach the properties, and sell their possessions to recoup the debt.

“Our ultimate goal is to quickly recover the hard-earned money that the average person has lost to the builder. The goal of the entire strategy is to put more pressure on defaulters so that they quickly refund the money of the average person “added the IAS officer.

About 100 builders, he claimed, are in default, with 28 in the Sadar tehsil and 73 in the Dadri tehsil.

DM Verma gave defaulters a strong warning by saying, “There is no way to avoid the RCs that the UP RERA imposed following proper hearings. The district administration issues a warning to defaulters warning them that harsh action would be taken in the future if they don’t repay the common man’s money.”

Assistant Director of Finance and Revenue Vandita Srivastava stated that neither the Greater Noida Authority nor the local Noida Authority was responsible for these RCs; rather, UP RERA alone was responsible.

“The district administration has been receiving 150 to 200 RCs on average per month since the RERA was established in May 2018. There have been 4,571 requests for capital received to now, totaling about Rs 1,728 crore “added Srivastava.

With the exception of the peak COVID-19 pandemic from March 2020 to February 2022, when no coercive action was taken against builders in accordance with a court ruling, she added, from 2018 to the present, “action has been made on these RCs at the tehsil levels.”

According to Srivastava, the district administration was able to recover more than Rs 200 crore from RERA defaulters last year, bringing the total amount of recoveries made till 2018 to over Rs 365 crore.

In instances totaling more than Rs 344 crore, numerous defaulting builders also settled with homebuyers last year, according to the ADM.

We will now “further increase our efforts in collecting the dues through this action against defaulters,” Srivastava said.