The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has introduced stringent guidelines governing mutual settlements between homebuyers and developers, aiming to enhance transparency and accountability in the real estate sector. These guidelines, effective from this month, mandate settlements to be formalized on non-judicial stamp paper, notarized, and uploaded onto UP-RERA's web portal for verification. These measures seek to address issues of non-compliance and disputes, ensuring adherence to established norms and fostering an environment conducive to successful resolution of proceedings. By standardizing the settlement process and imposing strict compliance measures, UP-RERA aims to enhance trust and efficiency in the state's real estate market.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has taken a significant step towards enhancing transparency and accountability in the real estate sector by introducing stringent guidelines governing mutual settlements between homebuyers and developers. With an aim to address the recurring issues of non-compliance and disputes in settlement procedures, UP-RERA unveiled these guidelines earlier this month, marking a pivotal moment in the regulatory landscape of the state's real estate market.
The decision to implement these guidelines stemmed from a recognition of the prevalent challenges faced during the adjudication of complaints and execution of orders. It was observed that parties involved in these proceedings often sought mutual settlements so as to expedite the resolution process. However, instances of non-adherence to established norms and even outright backing out on settlements at later stages were becoming increasingly common. This raised doubts on the efficacy and integrity of the settlement mechanism.
To rectify this situation, UP-RERA laid down comprehensive guidelines effective from February 2nd, outlining the mandatory requirements for mutual settlements. According to these guidelines, settlements must be formalized on non-judicial stamp paper worth INR 100, notarized, and signed by designated representatives of both the promoter and the allottee. Additionally, the terms and conditions of the settlement must be clearly articulated, ensuring alignment with prevailing laws and public policies.
Furthermore, UP-RERA has emphasized the crucial role of transparency in the settlement process. Promoters are now mandated to upload settlement documents onto the RERA's web portal for verification purposes. Physical verification will be conducted by UP-RERA benches or offices, with provisions for email verification in cases where physical presence is not feasible.
Chairperson Sanjay R Bhoosreddy underscored the significance of these guidelines, emphasizing their benefits for both promoters and allottees. By standardizing the settlement process and imposing strict compliance measures, UP-RERA aims to mitigate the risks associated with defective settlement deeds and subsequent disputes. Parties will be bound by the terms of the settlements once executed in accordance with UP-RERA directives, thereby fostering an environment conducive to successful and expeditious resolution of proceedings.
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