ghaziabad the real estate regulatory authority rera in the state has decided to form a committee to look into projects that have been stalled over nonpayment of installments by the buyers or allotteesit has also been decided that if a builder cancels the allotment of a buyer over nonpayment of several installments it has to refund only the principal amount after deducting the money paid during booking a flat that too after the unit has been resold or the project is completedthe decisions were taken in a meeting between the uprera officials and developers many of the smalltime builders complained that their projects were stuck over paucity of funds because the buyers had not paid installments either to the bank or the developer company officials said although there was a clause in the uprera act that allowed builders to cancel allotment of flats over nonpayment of installments it was hardly proving to be of any respite to them that was because a developer had to pay the entire amount to the buyer in case of such cancellations this often affected the progress of the projects because the developers paid from the funds set aside for the construction work the officials pointed out according to a clause in the uprera act a builder can cancel allotment of a flat if a buyer repeatedly delays paying the installments in such cases the builder can issue notices to the buyer demanding the installment and also a penalty amount said a rera official if the buyer fails to pay the installment for three consecutive months the builder has the right to cancel the allotmentcredai officials said the clause hardly helped thats because the developers had to return the entire amount to the buyers within a stipulated time the problem is more for smalltime builders who are anyway struggling with funds if they have to return the amount and within a specified time it leaves them with depleted coffers said pankaj bajaj the president credai in ncrit has also become difficult for the developers to resell a flat at a time when the real estate sector is witnessing a slump he added the developers recently held a meeting with the rera officials on the issue of delayed installments the builders made a point so a decision was taken that in case of cancellation a developer will return the amount only after the flat is resold or the project is completed also the developer will pay the buyer after deducting the booking amount and the interest related to the liabilities only the principal amount will need to be paid the rera official saida decision was also taken to form a monitoring committee to ensure the progress of projects without any such hindrance