The Noida Authority has given Supertech's chairman, R.K. Arora, ten days to pay the INR 26 crore ($3.5 million) worth of recovery certificates (RCs) issued by UP-RERA that the company has not yet fulfilled. Last week, the Supertech chairman committed to paying INR 2 crore ($270,000) and making settlements of INR 5 crore ($670,000), pledging that the company will soon pay the remaining dues. This move is part of the district administration's drive to collect Rs 503 crore against 1705 RCs issued by UP-RERA to 101 developers.
The Noida administration has given Supertech chairman R.K. Arora 10 days to clear Rs 26 crore of recovery certificates (RCs) issued by Uttar Pradesh Real Estate Regulatory Authority (UP-RERA). Officials from the administration had called Arora to the office of the subdivisional magistrate (SDM) Dadri to discuss a timeline for clearing the dues. Arora has assured the officials that he will clear the dues soon. This move is part of the district administration's drive to collect Rs 503 crore against 1705 RCs issued by UP-RERA to 101 developers. Since April 6, the administration has recovered Rs 40 crore against the pending RCs.
Supertech had recently cleared RCs worth Rs 5 crore and last week, Arora committed to paying an additional Rs 2 crore and making settlements of Rs 5 crore. Vandita Srivastava, ADM finance, said that Arora had promised that the company would clear the rest of the dues soon. Alok Kumar Gupta, SDM Dadri, said that Arora was in his office for about an hour and was not detained. He added that Arora said he was not personally aware of the RCs and called a staff member who handles these issues for the company.
The district administration has the power to detain or arrest a person for a default in payment of an arrear of land revenue under Section 171 of UP Revenue Code 2006. Revenue officials first issue notices to defaulters, then perform munadi (drumbeating) outside their offices and residences to recover RC dues. If the dues are not cleared even after that, proceedings can be initiated to seize a defaulter's properties and auction them.
UP-RERA has been issuing RCs, which are refunds for homebuyers, since May 2018. The administration has received 4571 RCs worth Rs 1,700 crore so far. However, some developers have gone to the National Company Law Tribunal (NCLT) and their RCs have been withdrawn.
Noida Authority is the governing body responsible for managing and maintaining the infrastructure and facilities in the city of Noida, located in the state of Uttar Pradesh, India. The administration comprises various departments, including finance, revenue, and urban development, among others, that work towards ensuring the efficient functioning of the city. One of the primary responsibilities of the administration is to regulate the real estate sector in Noida and ensure that developers comply with the guidelines and regulations set by the government.
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