The Gautam Budh Nagar district administration has taken the decision to auction the attached flats and shops in the Wave Mega City project on May 29, following non-payment of dues amounting to Rs 136 crore, according to officials familiar with the matter, as reported by Moneycontrol.
These properties were seized after the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) issued recovery certificates (RCs) against the developer. Despite receiving several notices, the developer has failed to clear the outstanding dues.
An anonymous official revealed, “A total of 38 shops located in Wave Silver Tower, in Noida Sector 18, are scheduled to be auctioned on May 29. This action is part of the district administration’s strong measures against defaulting builders.”
The shops to be auctioned vary in size from 165 square feet to 1,240 square feet, with reserve prices ranging between Rs 50 lakh and Rs 2.6 crore, depending on factors such as size and other considerations, stated officials.
At the time of publishing, no response was received from the company after emails were sent seeking comment. The article will be updated once a response is received.
Following the auction, the successful bidder for each shop will be required to immediately pay 25 percent of the final amount. The funds generated from the auction will be used to settle the recovery certificates issued by UPRERA against the defaulter.
This auction is part of a larger initiative. In case other builders with pending dues fail to clear their debts, the attached properties of those developers, who also have RCs against them, will be auctioned off.
The UPRERA issued these recovery certificates after receiving pleas from homebuyers and investors seeking refunds from developers who failed to deliver housing projects.
Since the regulatory body issued RCs against nearly 100 builders with a combined debt of Rs 502 crore, the district administration has taken recovery action against defaulting developers with pending dues. The action began on April 7, with the district administration forming 40 teams consisting of clerks and tehsildars to identify defaulter builders’ properties and initiate measures, including public shaming, sealing of offices, and seizing their properties.
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