UP-Rera Imposes Penalties on Noida Builders for Unregistered Projects
Two Noida-based builders have been slapped with penalties worth Rs 5 lakh each by the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) for failing to register their projects.
Projects in Question
- Estate 105: A Noida project that was being promoted through websites without registration.
- Sobha Rivana: Another Noida project that was found to be in violation of registration norms.
- Avikalp Estate: A Lucknow-based project that was fined for selling units without registration.
According to an official from UP-Rera, notices were issued to the erring developers, who filed replies that were found to be unsatisfactory.
Section 3 of the Real Estate (Regulation and Development) Act, 2016
The official noted that the developers were found to be in violation of Section 3 of the Act, which makes registration of any real estate project with UP-Rera mandatory.
UP-Rera Act Regulations
- Registration is mandatory for projects located within a planning area, having a land area exceeding 500 square metres or comprising more than 8 apartments or flats.
- Advertisement, marketing, booking, sale or promotion of such projects through any medium, prior to registration is considered a punishable offence.
Penalties and Consequences
According to the Act, promoters found in violation can be fined up to 10% of the estimated cost of the project.
If violations continue or the developer does not comply with the Authority's order, penalties can be imposed in the form of additional fines or imprisonment.
UP-Rera's Stance
UP-Rera chairperson Sanjay Bhoosreddy emphasized that promotion or sale of any project without registration is a serious violation of the Act, and no leniency will be shown in such matters.
He added that strict action against defaulting promoters will continue in the future.