UP-RERA authorises builder to complete Elegant Splendour, to monitor construction

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has authorized the promoter
of Elegant Splendour to complete the remaining construction work under section 8 of RERA Act.
With the consent of more than 50% allottees, the authority facilitated rehabilitation of 15th stuck
project for completion to protect interest of allottees and with this 211 allottes of the project will
get possession in next 12 months.
As per the direction of authority, existing and new promoter will complete the project jointly by
2026 . Construction of phase-1 is 65-70 percent and phase-3 is 10 percent only.
Elegant Splendour project has two phases in which ‘Phase 1’ comprises of towers E, F and G
towers and ‘Phase 3’ comprises towers A, B, C, D and H towers.
The project was registered in UP RERA in August 2017 but could not be completed within the
period of valid registration. The registration of Phase 1 and Phase 3 lapsed on September 3,
2019 and August 22, 2022 respectively.
Both the promoter and the association of allottees, ‘Elegant Splendour Flat Buyers Welfare
Association’, had approached UP RERA to intervene in the matter and facilitate the remaining
development work of the phases under its supervision.
The promoter had entered into a Joint Development Agreement (JDA) with Floral Realtech Pvt.
Ltd. for facilitating completion of both phases jointly to ensure possession to the existing
allottees as soon as possible.
For phase-1, the entire permissible extension of registration, 1 year as per section 6 of RERA
Act and other extension due to COVID-19 pandemic, had lapsed. For phase-3, keeping
construction status in mind, permissible extension of registration was not sufficient for
completion.
The promoter informed about submission of its application to GNIDA (Greater Noida Industrial
Development Authority) for revalidation of sanctioned map and further correspondence to submit
prescribed fee.
On this basis, the Authority considered the request from the promoter and association of
allottees to extend its support for completion of the project under the provisions of section 8 of
the RERA Act read with Section 6 and 37 of the act.
The Authority has established a Project Management Division (PMD) in its NCR regional office
at Gr Noida and the completion plan of the project submitted by the promoter with the written
consent of more than 50% of their allottees through their registered association was thoroughly
scrutinized through this division.
The Authority, based on the report of its project management division, was satisfied that the
completion plan as submitted by the promoter was worth accepting for the protection of the
interest of the allottees and furtherance of the objects of the act.
As per the site inspection report, carried out on 22nd October 2022, the overall physical
progress of the Phase 1 is 65-70 percent and Phase 3 is 10 percent only. Existing allottees belong to towers of Phase 1 that can be completed soon and towers of Phase 3 are at nascent
stage without any booking.
Elegant Splendour Phase 1 and Phase 3 have a total 640 residential units and only 211 units
have been sold.
“Our prime objective is to protect the interests of all stakeholders of stuck projects, especially
allottees. Elegant Splendour is the 15th project in the state wherein we have facilitated a new
promoter to complete the remaining development work in understanding with the allottees of the
project or alternatively association of allottees who are approaching. We are examining the
possibility of facilitating the completion of some more such projects under enabling provisions of
RERA Act to stimulate construction in the stuck projects to ensure possession to its allottees,”
said Rajive Kumar, Chairman, UP RERA.
As per the estimate, Rs 239.10 crore can be raised from the unsold units of the project and Rs
20.69 crore is due from the existing allottees.
The total cash flow in the project is Rs 260.06 crore and the estimated cost to complete the
project is about Rs 219.69 crore in various heads.
RERA has said that promoter will deposit Rs 12.50 crore upfront capital in next 3 months to pay
revalidation fee of sanctioned map to GNIDA and infuse rest of the funds to commence
construction immediately.
Also, a separate account of the project shall be maintained in the name of the project and all the
future receipts from the allottees of the project as also from project financers, if any, shall be
deposited in this account.
The money from this account will be utilized only for the purposes of construction and
development of the project in conformity with the relevant provisions of the RERA act and as per
the relevant direction of the Authority. Both promoters will settle an existing loan of a financial
institution from its own resources till February 2023 only.
The Authority will shift the project to the special category of projects under rehabilitation and
monitor its progress quarterly. The Authority shall appoint a third party construction consultant to
monitor the physical and financial progress of the project.