NEW DELHI: The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has fined three projects ₹5 lakh each for marketing and selling units without the required registration, breaching the Real Estate (Regulation and Development) Act, 2016.
During its 198th meeting, UP-RERA discovered that ‘Estate 105’ (Max Estate), ‘Sobha Rivana’ (Sobha) in Noida, and ‘Avikalp Estate’ (Dhanushkothi Builder & Developer) in Lucknow were being promoted or sold without obtaining the necessary RERA registration.
UP-RERA noted that these projects were advertised on digital platforms, and in one instance, units were sold prior to registration, violating section 3 of the Act, which mandates registration before any form of marketing, booking, or sale.
The authority issued notices requesting explanations from the promoters but deemed the responses inadequate, resulting in penalties imposed under Section 59 of the Act.
According to the law, projects larger than 500 sq. meters or consisting of more than eight units must be registered with RERA prior to any promotion or launch. Breaches can result in penalties up to 10% of the project cost, and continued violations may lead to serious consequences, including imprisonment.
UP-RERA stated that this action is part of ongoing initiatives to curb unauthorized project promotions and enhance compliance in the sector. In the last six months, the authority has imposed a total of ₹63 lakh in penalties on 13 projects for similar infractions across regions such as Noida, Ghaziabad, Lucknow, and Mathura.
Sanjay Bhoosreddy, chairman of UP-RERA, emphasized that promoting or selling unregistered projects is a serious offense and reaffirmed that enforcement actions will persist to ensure transparency and protect the interests of homebuyers.
