Nagpur's Nirmal Ujjwal Society Faces ₹6 Crore Fine for RERA Violation
The Maharashtra Real Estate Appellate Tribunal has upheld a ₹6 crore fine on Nagpur's Nirmal Ujjwal Credit Cooperative Society for failing to register its property under RERA. The society also faces criticism for inadequate amenities in their residential
ReraMaharashtraNirmal UjjwalReal EstateFineReal Estate MaharashtraFeb 27, 2025
Under Section 59 of the Real Estate (Regulation and Development) Act, 2016 (RERA), the tribunal upheld the Maharashtra RERA Authority’s decision to impose a fine of ₹6 crore on the society for failing to register its property with RERA.
Tribunal members Shriram Jagtap and M.M.
Deshpande dismissed the appeal filed by Nirmal Ujjwal Credit Society during a video conferencing hearing.
The society was penalized for not complying with Section 3 of RERA, which requires all ongoing projects to be registered if they are still under construction.
When the Real Estate (Regulation and Development) Act (RERA) came into effect in 2016, the project was still under construction.
However, the appellant did not register Nirmal Ujjwal with MahaRERA.
Consequently, a complaint was filed with MahaRERA by the complainant.
During the hearing, the appellant admitted that part of the project had been completed while the remaining construction was still in progress.
Despite this, the society acknowledged that it had not registered the project with MahaRERA.
The society also issued advertisements for selling the remaining units, further violating Section 3 of RERA.
After hearing arguments from both sides, the Maharashtra RERA Authority, on January 4, 2019, ordered Nirmal Ujjwal Credit Society to register the project within three weeks and imposed a penalty of ₹6 crore.
The society challenged this decision before the Maharashtra Real Estate Appellate Tribunal but failed to prove that the project was completed before RERA came into effect in 2016.
Therefore, the tribunal refused to interfere with the MahaRERA Authority’s decision and dismissed the petition.
Nirmal Ujjwal Credit Society is a cooperative institution duly registered under the Maharashtra Cooperative Societies Act, 1960.
The society was developing a residential project named “Nirmal Nagari” at Mouza Harpur, Middle Ring Road.
The project included flats, duplex flats, row houses, independent bungalows, and commercial shops.
Out of a total of 944 units, 725 had already been sold.
The complainant, Srishti Puttewar, a homebuyer in this project, purchased a row house on October 7, 2013, based on the promises, assurances, and information provided in the project’s brochure.
As per the approved plans, layout, and specifications, the appellant was required to complete the project.
However, essential amenities such as water and electricity supply were inadequate.
Road construction was incomplete, and the promoter failed to provide the promised services.
The decision by the tribunal not only highlights the importance of compliance with RERA but also underscores the need for developers to fulfill their obligations to homebuyers.
The fine imposed on Nirmal Ujjwal Credit Society serves as a deterrent to other developers who might consider bypassing the regulatory requirements.
Frequently Asked Questions
What is RERA?
RERA stands for Real Estate (Regulation and Development) Act, 2016. It is a regulatory framework designed to protect the interests of homebuyers and promote transparency, accountability, and efficiency in the real estate sector.
Why was Nirmal Ujjwal Credit Cooperative Society fined?
The society was fined for failing to register its ongoing residential project with the Maharashtra RERA Authority. This violation of Section 3 of RERA led to a ₹6 crore penalty.
What was the decision of the Maharashtra Real Estate Appellate Tribunal?
The tribunal upheld the Maharashtra RERA Authority’s decision to impose a ₹6 crore fine on Nirmal Ujjwal Credit Cooperative Society and dismissed the society’s appeal.
What are the key amenities that were found to be inadequate in the Nirmal Nagari project?
The essential amenities found to be inadequate included water and electricity supply, as well as incomplete road construction.
Who is Srishti Puttewar and what was her complaint?
Srishti Puttewar is a homebuyer who purchased a row house in the Nirmal Nagari project. She filed a complaint due to the inadequate basic amenities and the society’s failure to provide the promised services.
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