{"id":611,"date":"2026-06-30T05:48:46","date_gmt":"2026-06-30T05:48:46","guid":{"rendered":"https:\/\/mudralegal.com\/blog\/?p=611"},"modified":"2026-06-30T05:56:31","modified_gmt":"2026-06-30T05:56:31","slug":"up-rera-issues-new-sop-on-refunds-in-section-8-projects-what-every-homebuyer-must-know","status":"publish","type":"post","link":"https:\/\/mudralegal.com\/blog\/up-rera-issues-new-sop-on-refunds-in-section-8-projects-what-every-homebuyer-must-know\/","title":{"rendered":"UP RERA Issues New SOP on Refunds in Section 8 Projects: What Every Homebuyer Must Know"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"611\" class=\"elementor elementor-611\">\n\t\t\t\t<div class=\"elementor-element elementor-element-22020d45 e-flex e-con-boxed e-con e-parent\" data-id=\"22020d45\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-14845960 elementor-widget elementor-widget-text-editor\" data-id=\"14845960\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">When a real estate project comes to a standstill because the builder fails to complete it, homebuyers are often left with a difficult question:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Should they continue waiting for possession or seek a refund?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">To address this issue, the <strong>Uttar Pradesh Real Estate Regulatory Authority (UP RERA)<\/strong> has issued a <strong>new Standard Operating Procedure (SOP) dated 20 June 2026<\/strong>, replacing its earlier office order of <strong>20 June 2023<\/strong>. The new SOP brings significant changes in how refund complaints will be handled for projects being completed under <strong>Section 8 of the Real Estate (Regulation and Development) Act, 2016 (RERA)<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The revised policy attempts to strike a balance between <strong>protecting the financial viability of stalled projects<\/strong> and <strong>preserving the legal rights of homebuyers<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">In this article, we explain the new SOP in simple language and discuss its legal implications for allottees, promoters, Associations of Allottees (AoAs), and ongoing Section 8 projects.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Understanding Section 8 of the RERA Act<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Before understanding the SOP, it is important to understand <strong>Section 8 of RERA<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Section 8 comes into operation when:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">The promoter&#8217;s registration is cancelled;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">The promoter fails to complete the project;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">The registration expires without completion; or<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">The promoter becomes incapable of completing the project.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">In such situations, the Regulatory Authority may take appropriate steps to ensure completion of the remaining development work.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Authority may:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Authorise the Association of Allottees (AoA) to complete the project;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Appoint another developer;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Permit the original promoter to continue under specific conditions; or<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Adopt any other legally permissible mechanism to complete construction.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The primary objective is simple:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>Complete the project instead of allowing it to remain permanently stalled.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Why Was a New SOP Required?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">In June 2023, UP RERA had issued an office order providing that refund-related complaints in projects taken over under Section 8 would generally remain <strong>in abeyance<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This meant that:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Refund complaints were not decided.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Homebuyers had to wait until completion of the project.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Even deserving refund claims remained pending for years.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Although the intention behind the policy was to protect project funds from being diverted towards refunds, the practice created hardship for many homebuyers.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The issue eventually came before the <strong>U.P. Real Estate Appellate Tribunal<\/strong> in proceedings relating to <strong>Antriksh Realtech Pvt. Ltd.<\/strong>, where the Tribunal observed that keeping complaints indefinitely in abeyance was legally unsustainable. Consequently, UP RERA reconsidered its policy and withdrew the earlier office order, issuing a revised SOP on <strong>20 June 2026<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>What Is the Objective of the New SOP?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The new SOP seeks to balance two competing interests:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>1. Completion of the Project<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The project should not fail merely because multiple refund claims consume the funds required for construction.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>2. Protection of Homebuyers&#8217; Legal Rights<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Homebuyers should not lose their statutory right to seek refund merely because the project is being completed under Section 8.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The revised SOP therefore adopts a balanced approach:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Refund complaints will be decided.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Project funds will continue to remain protected.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Major Changes Introduced by the New SOP<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>1. Refund Complaints Will No Longer Remain in Abeyance<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This is the biggest change introduced by the SOP.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Under the previous policy, refund complaints were generally kept pending.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Under the new SOP:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Complaints will be heard.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Evidence will be considered.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">The Authority will decide the complaint on its merits.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Therefore, the allottee no longer loses the opportunity of obtaining a legal determination of his rights.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>2. Association of Allottees (AoA) Is Not Liable to Pay Refunds<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Many stalled projects are now being completed by the <strong>Association of Allottees<\/strong> after cancellation of the promoter&#8217;s registration.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The SOP clarifies the following:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">AoA is merely completing construction.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">AoA never collected the original sale consideration.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Therefore, AoA cannot be directed to refund the buyer&#8217;s money.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The refund liability continues to remain with the <strong>original promoter<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This clarification protects resident associations from financial liabilities created by the defaulting builder.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>3. Recovery Certificate Can Still Be Issued Against the Original Promoter<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">If the Authority passes a refund order against the original promoter,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the allottee may still seek issuance of a <strong>Recovery Certificate (RC).<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">However,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the recovery proceedings cannot be directed against:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">project funds,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">project bank accounts,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">construction assets, or<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">project property presently being utilised for completion of construction.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Instead,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the recovery must proceed only against the original promoter.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This distinction is crucial because project resources are required exclusively for completing construction.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>4. Execution of Refund Orders May Be Deferred<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The SOP introduces a significant procedural distinction.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Authority will first advise the allottee regarding the consequences of insisting upon refund during ongoing construction.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">If the allottee still wishes to proceed,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the complaint shall be decided on merits.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">However,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">if refund is granted,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the execution of that refund order may remain stayed until completion of the project.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This represents a substantial policy shift.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Earlier:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>Complaint itself remained pending.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Now:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>Complaint is decided immediately, but execution may wait.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This approach preserves both legal rights and construction progress.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>5. What Happens When the Original Promoter Is Allowed to Continue?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Not every failed project is handed over to the Association of Allottees.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Sometimes,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the majority of allottees agree that the original promoter should complete the remaining work.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">In such situations,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the Authority may permit the original promoter to continue under Sections <strong>6, 8 and 37 of RERA.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">For these projects,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the SOP provides that:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">complaints shall be decided according to the normal legal process;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">every complaint shall be decided on its individual merits; and<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">no special restriction applies merely because the project falls within Section 8.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>6. Treatment for SWAMIH-Funded Projects<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Many stalled projects are now financed through the <strong>SWAMIH Investment Fund-I<\/strong> or similar investment funds.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Authority has recognised that such projects often contain separate financial arrangements regarding compliance with RERA orders.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Accordingly,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">complaints relating to these projects will also be decided on merits.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This provides greater certainty for both homebuyers and financial institutions involved in project revival.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>Practical Impact on Homebuyers<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The revised SOP provides several important benefits:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Refund complaints will not remain indefinitely pending.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Buyers receive a reasoned legal decision.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Project completion remains protected.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Associations of Allottees receive protection from liabilities they never incurred.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Recovery continues against the actual wrongdoer\u2014the original promoter.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">Financial discipline in revived projects is maintained.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Impact on Builders<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">For promoters,<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">the SOP reinforces that liability does not disappear merely because the project has been taken over under Section 8.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Refund obligations continue against the original promoter.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The promoter cannot shift that liability upon:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the Association of Allottees,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the new developer, or<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the Authority completing the project.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Legal Significance of the SOP<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The 2026 SOP represents a mature evolution in UP RERA&#8217;s regulatory approach.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Instead of forcing homebuyers to choose between refund rights and project completion, the Authority now protects both.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The revised framework recognises that:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">construction requires financial stability;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">buyers possess statutory rights under RERA; and<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">procedural fairness requires that complaints be decided without unnecessary delay.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The new policy therefore replaces an approach of <strong>&#8220;suspending legal remedies&#8221;<\/strong> with one of <strong>&#8220;granting legal remedies while safeguarding project completion.&#8221;<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Conclusion<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The <strong>UP RERA SOP dated 20 June 2026<\/strong> marks an important shift in the regulation of stalled real estate projects.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">While the Authority continues to prioritise completion of projects under Section 8, it has also restored the statutory rights of homebuyers by ensuring that refund complaints are heard and decided.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div 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