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In the realm of Ghaziabad's real estate, a mere 15% of the recovery certificates, handed out by the Real Estate Regulatory Authority (UP-RERA) have materialized, revealing a disheartening reality. As the records show, a total of 781 recovery certificates, amounting to a substantial sum of Rs 142 crore, were issued by RERA till the month of June. However, a meager fraction of 117 certificates, equivalent to a mere 14.9%, have been successfully reclaimed, accounting for a paltry sum of Rs 17.3 crore. Officials lamented this lackluster outcome, highlighting the underwhelming execution of the issued certificates.
Pertaining to Section 40 (1) of the UP RERA Act and Rule 23, the authority possesses the power to summon developers to settle their dues, encompassing arrears of land revenue. Yet, it rests upon the district administration to ensure the actualization of these outstanding amounts.
Engaging in discourse on this matter, Ghaziabad's district magistrate, RK Singh, expressed the grim reality. Out of the 781 recovery certificates bestowed upon defaulting developers, a staggering 169 projects, valuing a hefty sum of Rs 63.42 crore, find themselves entangled in the intricacies of the National Company Law Tribunal (NCLT) or embroiled within various courts, leaving the district administration powerless to intervene. Further exacerbating the situation, 495 recovery certificates, worth a total of Rs 61.63 crore, remain unexecuted within the confines of the district.
The crux of the challenge lies in the fact that the majority of these developers maintain their official addresses in Delhi, Noida, or other parts of the state, despite their projects being situated in Ghaziabad. This legal technicality renders the district administration incapable of serving any notices, including recovery certificates, to developers residing beyond their jurisdiction, as explained by Singh.
However, Supreme Court lawyer Prashant Kanha, specializing in real estate cases, provided a glimmer of hope by shedding light on an alternative approach. Kanha posited that a district administration can indeed serve such notices through the collectorate of the district in which the defaulter is headquartered or resides, invoking the provisions outlined in the Revenue Recovery Act of 1890.
Drawing attention to Rule 24 of the UP RERA Act, Kanha emphasized that the regulatory authority possesses the capacity to wield its powers, initiating the execution process by requesting compliance reports from a district collector on the progress made in enforcing the recovery certificates.
Sadly, it appears that both the UP RERA and district administrations in the state have inadvertently transformed into legal shock absorbers for these defaulting developers. This somber reality accounts for the abysmally low execution rate of recovery certificates, not only in Ghaziabad but throughout the entire state, Kanha ruefully concluded.
T Venkatesh, the acting chairman of UP RERA, reiterated the provisions laid down in Section 40 (1) of the UP RERA Act and Rule 23 of UP RERA Rules. According to him, the regulatory authority issues recovery certificates to the concerned district administration, who subsequently enforces the recovery orders as arrears of land revenue in accordance with the provisions stipulated in the UP-Revenue Code of 2006.
Urging the district administrations to expedite the recovery process, RERA diligently sends monthly reminders, while receiving crucial support from the chief secretary and commissioner of Meerut in this arduous endeavor. So far, an outstanding demand of approximately Rs 1,200 crore across 4,615 cases has been either discharged through the recovery of recovery certificates by the district administrations or resolved through settlements between the parties involved within the state, Venkatesh divulged.
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