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Rajasthan RERA cancels auction of flats by Union Bank of India, Real Estate News, ET RealEstate

Rajasthan RERA cancels auction of flats by Union Bank of India, Real Estate News, ET RealEstate
JAIPUR: In a landmark decision, the Rajasthan Real Estate Regulatory Authority (RERA-Raj) has protected the interests of the allottees by cancelling the auction proceedings initiated by the Union Bank of India.

The authority also directed the bank to hand over the under-construction residential project ‘Sunrisers’ situated in C-Scheme area to RERA. The authority will ensure the project’s completion and handing over of the allotted flats to the buyers.

The order of nearly 100 pages was passed by chairman of Rajasthan RERA Nihalchand Goya on the complaints filed by Mukesh Agarwal and other allottees.

Appearing on the behalf of the allottees, advocate Mohit Khandelwal said the residential complex, which was being developed and promoted by SNG Real Estate at Ashok Marg C-Scheme was launched in the year 2014. The flats were booked by many allottees after executing the agreement to sale with the promoter by paying lakhs of rupees as sale consideration.

While purchasing flats, many allottees had taken housing loan from other banks vide various tripartite agreements and the flats were mortgaged to bank and regular installments were repaid. The entire record of the charge created by the bank on the flats were duly recorded on CERSAI.

“Many allottees also got their agreements registered with the sub-registrar. In 2016, SNG Real Estate bypassed the legal provisions and without informing the allottees, mortgaged the entire project building on loan to Union Bank of India (Erstwhile Andhra Bank), thereafter, and obtained a term loan of Rs 15 crore from the Union Bank of India and later, due to non-repayment of the said loan by the promoters, the entire project building was attached by the Union Bank of India,” said Khandelwal.

In 2020, Union Bank of India arbitrarily initiated the auction proceedings of 19 flats out of 38 when the maximum of these flats were already allotted to the allottees. Against this act of Union Bank, complaints were filed by the allottees before RERA to protect their interests.


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