Under U.P. RERA's Rehabilitaiton initiative, Jaypee Greens Kalypso Court becomes India's first project to reach completion

First project in U.P and the country to reach completion under provisions of section 8 of RERA Act meant to facilitate completion of challenged projects

Shivani
Published on: 18 Nov 2022 12:21 PM GMT
Under U.P. RERAs Rehabilitaiton initiative, Jaypee Greens Kalypso Court becomes Indias first project to reach completion
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Gautambudh Nagar/ Lucknow: After obtaining Occupancy Certificate (OC) of last 2 towers, 11 and 12, Kalypso Court Phase -2 project has become the first project of Uttar Pradesh and the country to achieve completion via rehabilitation under provisions of section-8 of RERA Act and supervision of U.P. RERA (Uttar Pradesh Real Estate Regulatory Authority). The promoter obtained the Occupancy Certificate (OC) for last 2 towers of project by New Okhla Industrial Development Authority (NOIDA) on 17th November 2022. Jaypee Greens Kalypso Court Phase -2 (UPRERAPRJ4695) is located in JP Wish Town, Sector 128, Gautambuddh Nagar and promoted by M/s Jaiprakash Associates Limited (JAL).

On the successful receipt of the Occupancy Certificate (OC) of 154 units in both towers, the promoter can now offer possession to its stuck allottees. Originally 4 towers had been in rehabilitation since July 2020 to complete remaining construction work under provisions of section -8 and in the month of August 2022 the promoter had obtained OC of 148 units in two towers; tower 7 and 8. So as of now, the promoter has obtained OC of all 304 units in remaining 4 towers that enables promoter to offer possession to its 274 existing allottees and sell the remaining 30 unsold units.

The project had been launched around 2010-11 and after a decade of buying home the home buyers shall finally fulfill their dream of moving into their own home. Popularly known as the Kalypso model in the real estate sector, the project has become the first of its kind benchmark to boost confidence of promoters and allottees of stuck projects. This is a big breakthrough for U.P. RERA and can set a trend of completion of other stuck projects via rehabilitation. In this way, in almost 2 years time, a stuck project since a decade is now ready for occupancy under provisions of RERA Act and supervision of U.P. RERA.

On this occasion, Sh. Rajive Kumar, Hon'ble Chairman, U.P. RERA congratulated the Project Advisory & Monitoring Committee, Project Management Division, the promoter and the association of allottees on successful completion of the project. He said, "Today is a big day for the entire real estate sector because a stuck project has achieved completion with OC. The RERA Act was enacted on the backdrop of massive delays in completion of real estate projects and the need for safeguarding the interests of homebuyers. The effective use of provisions of RERA Act in enabling completion of stalled real estate projects is game-changer. I am proud that U.P. RERA has been spearheading this movement and now has overseen the completion of the first project in the country using the provisions of Section 8 of the RERA Act. I am confident that more and more promoters and allottee associations shall utilize this platform for rehabilitating stalled / delayed real estate projects under the aegis of RERA."

This novel experiment has given hope to the homebuyers and infused positive sentiments in the industry. Presently, UP RERA is facilitating completion of 14 such projects under section 8 of the RERA through joint endeavour of the promoter and the allotees. These projects are under various stages of completion and over 7000 allotees will be able to get possession in these challenged projects on completion.

The biggest challenge was to craft a transparent system to build confidence between the promoter and allottees. Continuous efforts of Mr. R.D. Paliwal, Conciliator and initial funding of Rs. 45 crore from the promoter in an escrow account helped to bridge the gap and brought the project on the right path. Despite the challenges posed during the second wave of COVID-19 pandemic and the related lockdowns, the promoter under the guidance and monitoring of U.P. RERA continued momentum and rigor towards completing the project. Finally, the promoter applied for occupancy certificate to NOIDA for towers 7 and 8 in December 2021 and for towers 11 and 12 in May 2022.

The association of allottees played a remarkable role in ensuring the completion of this project. From nudging the promoter for rehabilitating the project to daily monitoring of the progress at the project site, the association has been active throughout the process. The association set a benchmark on how associations should be supporting promoters for completing projects and ensuring that rights of individual allottees are safeguarded.

U.P. RERA has been the frontrunner in the country in effectively using the provisions of Section 8 of the RERA Act for rehabilitating delayed / stalled projects. U.P. RERA took a focused approach and established a 'Project Management Division' to identify, advise and handhold promoters and allottee associations for completing real estate projects. The successful completion of one of the rehabilitated projects shall add vigor to our focus on taking up more such projects in the future.

The promoter had registered this project, comprising 8 towers, with U.P. RERA in 2017 and could complete only 4 towers before the expiry of RERA registration. U.P. RERA vide its order dated 29th July 2020 approved the plan of rehabilitation of the remaining 4 incomplete towers, towers 7, 8, 11, and 12 having 304 units, in the project by authorizing the promoter to complete the remaining construction and development work with the consent of the association of allottees i.e., Progressive Welfare Society which had more than 50 percent of the allottees in the towers.

U.P. RERA established a robust supervision and monitoring system under a Project Advisory & Monitoring Committee, assisted by PMD (Project Management Division) chaired by one of the Hon'ble Members of U.P. RERA. The committee also includes officers of U.P. RERA, the competent development authority, the promoter, and the association of allottees. The committee, through a construction consultant appointed by U.P. RERA, closely monitored the construction progress in the project and intervened, as necessary, to address day-to-day issues arising in the project. Over the course of the last 2 years, the committee convened multiple meetings, both in the U.P. RERA Regional Office in Greater Noida and at the project site, for effective monitoring of project completion.

Shivani

Shivani

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