As per the direction of UP RERA, existing and new promoter will complete the project jointly by 2026. Construction of phase-1 is 65-70 percent and phase-3 is 10 percent only. Elegant Splendour project has two phases in which ‘Phase 1’ comprises of towers E, F, and G towers and ‘Phase 3’ comprises towers A, B, C, D, and H towers.
The project was registered in UP RERA in August 2017 but could not be completed within the period of valid registration. The registration of Phase 1 and Phase 3 lapsed on September 3, 2019, and August 22, 2022, respectively. For phase 1, the entire permissible extension of registration, 1 year as per section 6 of the RERA Act and other extensions due to the COVID-19 pandemic, had lapsed. For phase 3, keeping construction status in mind, the permissible extension of registration was not sufficient for completion.
The promoter informed about the submission of its application to GNIDA (Greater Noida Industrial Development Authority) for revalidation of the sanctioned map and further correspondence to submit the prescribed fee.
On this basis, the Authority considered the request from the promoter and association of allottees to extend its support for the completion of the project under the provisions of section 8 of the RERA Act read with Section 6 and 37 of the act.
The Authority has established a Project Management Division (PMD) in its NCR regional office at Gr Noida and the completion plan of the project submitted by the promoter with the written consent of more than 50% of their allottees through their registered association was thoroughly scrutinized through this division.
As per the estimate, Rs 239.10 crore can be raised from the unsold units of the project and Rs 20.69 crore is due from the existing allottees. The total cash flow in the project is Rs 260.06 crore and the estimated cost to complete the project is about Rs 219.69 crore in various heads.
RERA has said that the promoter will deposit Rs 12.50 crore upfront capital in the next 3 months to pay the revalidation fee of the sanctioned map to GNIDA and infuse the rest of the funds to commence construction immediately. Also, a separate account of the project shall be maintained in the name of the project, and all the future receipts from the allottees of the project as also from project financers, if any, shall be deposited in this account.
The money from this account will be utilized only for the purposes of construction and development of the project in conformity with the relevant provisions of the RERA act and as per the relevant direction of the Authority. Both promoters will settle an existing loan of a financial institution from its own resources till February 2023 only.
The Authority will shift the project to the special category of projects under rehabilitation and monitor its progress quarterly. The Authority shall appoint a third-party construction consultant to monitor the physical and financial progress of the project.
