UP-RERA Imposes ₹5 Lakh Penalties on Three Projects for Unregistered Promotions

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed penalties of ₹5 lakh each on three real estate projects for promoting and selling units without mandatory registration, in violation of the Real Estate (Regulation and Development) Act, 2016 (RERA).

The action was taken during the authority’s 198th meeting. The projects found to be in violation include ‘Estate 105’ (Max Estate), ‘Sobha Rivana’ (Sobha) in Noida, and ‘Avikalp Estate’ (Dhanushkothi Builder & Developer) in Lucknow. These projects were being promoted or sold without obtaining RERA registration.

According to UP-RERA, the projects were advertised through digital platforms, and in one case, units were sold without registration, contravening Section 3 of the Act. This section mandates registration before any form of marketing, booking, or sale. The authority had issued notices to the promoters seeking explanations, but found the responses unsatisfactory, leading to the imposition of penalties under Section 59 of the Act.

Under the law, projects with a land area exceeding 500 sq metres or more than eight units must be registered with RERA prior to launch or promotion. Violations can attract penalties of up to 10% of the project cost, and continued non-compliance may result in further penalties or imprisonment.

UP-RERA stated that this action is part of ongoing efforts to curb unauthorized project promotion and strengthen compliance in the sector. Over the past six months, the Authority has imposed penalties totaling ₹63 lakh on 13 projects for similar violations across cities, including Noida, Ghaziabad, Lucknow, and Mathura.

Sanjay Bhoosreddy, chairman of UP-RERA, emphasized that the promotion or sale of unregistered projects is a serious offense and that enforcement action will continue to ensure transparency and safeguard homebuyer interests. The authority is committed to maintaining the integrity of the real estate market and protecting the rights of consumers.

The penalties imposed by UP-RERA serve as a strong deterrent against non-compliance and highlight the importance of adhering to the regulatory framework set by RERA. This move is expected to enhance trust and confidence in the real estate sector, benefiting both developers and homebuyers.