In a historic move, the Real Estate Regulatory Authority (RERA) in Bihar is set to auction a defaulting promoter's confiscated property to compensate homebuyers. The land, owned by Agrani Homes Private Limited in Patna's Dhawalpura locality, was seized by RERA in April 2023 after the promoter failed to refund amounts to homebuyers due to an unfinished project. The auction, scheduled for December 16, 2024, will have a minimum bid price of INR 5.17 crore. The proceeds will be distributed to the affected homebuyers, marking the first such auction since the Real Estate (Regulation and Development) Act, 2016, was enacted.
For the first time in Bihar, a property confiscated from a defaulting promoter by the Real Estate Regulatory Authority (RERA) will be auctioned to compensate homebuyers who suffered due to the non-completion of a project.
Earlier in April 2023, RERA Bihar seized land belonging to Agrani Homes Private Limited, located in the Dhawalpura locality of Patna. This action followed the promoter's failure to refund money to homebuyers after they failed to complete their project. As a result, the homebuyers were left with no recourse but to seek RERA's intervention.
The confiscated land, which spans 85.6 decimal, will be auctioned on December 16, 2024. The minimum bid for the property has been fixed at INR 5.17 crore. The proceeds from the auction will be distributed among the homebuyers who filed complaints against Agrani Homes at different stages. The auction is a historic moment, being the first time that RERA Bihar is auctioning the property of a defaulting promoter since the enactment of the Real Estate (Regulation and Development) Act, 2016.
Bihar RERA has already developed a standard operating procedure (SoP) for distributing the auction proceeds. Prior to the auction, homebuyers had approached RERA, which issued refund orders in complaint cases. However, when the promoter failed to comply with these orders, the matter was referred to the Patna district administration under the Public Demand Recovery Act. As Agrani Homes continued to evade compliance, the district administration began the process of recovering the amount by auctioning the confiscated land.
This auction highlights the state's growing commitment to protecting the rights of homebuyers and enforcing accountability within the real estate sector. It sets an important precedent for future cases where promoters fail to meet their obligations, ensuring that aggrieved homebuyers are compensated through legal measures.
The auction of Agrani Homes' confiscated land represents a significant milestone in Bihar's real estate regulation efforts. This unprecedented move, facilitated by RERA, aims to ensure that the homebuyers affected by the promoter's failure to deliver are compensated for their financial losses. The auction, with its minimum bid of INR 5.17 crore, serves as a reminder of the state's commitment to enforcing accountability in the real estate sector. The distribution of the proceeds will provide relief to the aggrieved homebuyers and set a precedent for future cases involving defaulting promoters.
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