For the first time, the property of a defaulting promoter, confiscated by the Real Estate Regulatory Authority (RERA) in Bihar, will be auctioned to refund the proceeds to aggrieved homebuyers for the promoter's failure to complete its project.

An official from RERA informed that the authority had confiscated land belonging to Agrani Homes Private Limited in the Dhawalpura locality of Patna in April 2023. This action was taken due to the promoter’s failure to refund the amounts taken from homebuyers after failing to complete its project.

The official stated that the 85.6 decimal of confiscated land, belonging to Agrani Homes, would be auctioned on December 16. The proceeds from the auction would be distributed among the aggrieved allottees who had filed complaints against Agrani Homes at different times. The minimum bid price for the land was fixed at Rs 50.17 million.

The official added that this would be the first instance in the state where the land of a defaulting promoter is being auctioned after the enactment of the Real Estate (Regulation and Development) Act, 2016. Bihar RERA has already established a standard operating procedure (SoP) for distributing the proceeds from the auction.

Previously, aggrieved homebuyers had approached the authority, which had passed orders for refunds in complaint cases and subsequent execution cases. After the promoter failed to comply with these orders, the matter was referred to the Patna district administration under the Public Demand Recovery Act for the recovery of the amount from the promoter.