Bihar RERA to Auction Confiscated Property for Homebuyer Refunds

Bihar Real Estate Regulatory Authority (RERA) is set to auction a confiscated property belonging to a defaulting builder to provide refunds to affected homebuyers. The builder, Agrani Homes Private Limited, had failed to complete a housing project or refund the money collected from buyers, leading to this unprecedented move.

The confiscated property, located in the Dhawalpura locality of Patna, spans 85.6 decimals of land. RERA seized the property in April 2023 after repeated non-compliance by the builder with refund directives. The auction for the land will take place on December 16, 2024, with the minimum bid price fixed at ₹5.17 crore. Proceeds from the auction will be distributed among homebuyers who filed complaints against the builder at various times.

Process Leading to the Auction

The affected homebuyers initially approached RERA with complaints against Agrani Homes for non-completion of the project and failure to return their money. Based on these complaints, RERA issued refund orders. When the builder failed to comply, the cases were escalated to execution proceedings. Despite these efforts, the builder continued to delay refunds, prompting RERA to refer the matter to the Patna district administration under the Public Demand Recovery Act.

The district administration then initiated recovery proceedings, resulting in the decision to auction the confiscated land. To ensure fairness in the distribution of proceeds, RERA Bihar developed a Standard Operating Procedure (SoP). This step ensures that funds are allocated equitably among all eligible claimants.

This auction marks the first time in Bihar that a confiscated property is being auctioned under the Real Estate (Regulation and Development) Act, 2016. It represents a concrete step toward enforcing accountability in the real estate sector. By taking this action, RERA aims to uphold the rights of homebuyers and demonstrate its commitment to resolving disputes efficiently.

This auction is being closely watched, as it could set a precedent for resolving similar disputes, building trust in regulations, and ensuring fairness for buyers.

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