PATNA: For the first time, a property of a defaulting promoter, confiscated by Real Estate Regulatory Authority (RERA), Bihar, will be auctioned so that the proceeds can be refunded to the aggrieved homebuyers for failure to complete its project.
“The authority had confiscated the land of Agrani Homes Private Limited in Dhawalpura locality of Patna in April 2023 due to the failure of the promoter to refund the amount taken from the homebuyers after failing to complete its project,” an official of the RERA told TOI on Monday.
“The 85.6 decimal of confiscated land belonging to Agrani Homes is going to be auctioned on December 16. Proceeds of the auction amount will be distributed among the aggrieved allottees who filed complaint cases against Agrani Homes at different points in time,” he said, adding the minimum bid price for the land has been fixed at Rs 5.17 crore.
“This is the first time that the land of a defaulting promoter is being auctioned in the state after the enactment of the Real Estate (Regulation and Development) Act, 2016,” he said.
Bihar RERA has already formulated a standard operating procedure (SoP) for the distribution of proceeds from the auction money.
Earlier, the aggrieved homebuyers approached the authority. Orders for refunds were passed in complaint cases and subsequent execution cases. After the promoter failed to comply with the directions given in the orders of complaint and execution cases, the matter was referred under the Public Demand Recovery Act to the Patna district administration for the recovery of the amount from the promoter.
“As Agrani Homes failed to do so, the district administration started the recovery process by auctioning the parcel of land which had already been confiscated by RERA Bihar,” the official said.
Source Homevior.in
