NEW DELHI: In response to numerous complaints from homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has initiated strict measures against various promoters and has directed multiple cases to be presented before the Authority for penalties under the Real Estate (Regulation and Development) Act.
UP-RERA stated that these actions are aimed at reducing violations and enhancing buyer trust and transparency in home purchases. The bench referenced provisions including Section 13 (prohibiting the collection of more than 10% advance without a registered sale agreement), Section 61 (allowing for penalties of up to 5% of estimated project cost for violations of the Act), and Section 63 (which allows penalties for failing to comply with the Authority’s orders, up to 5% of estimated project cost).
Mahagun Group:
The bench resolved sixteen complaints, noting that the promoter uploaded a drawing related to electrical installations on the RERA portal, misrepresenting it as an electrical NOC. Compliance was not ensured despite prior warnings of action under Section 63 for repeated offenses. The bench has forwarded these matters to the UP-RERA Secretary for punitive action under Section 63.
Mahalaxmi Group:
In nine complaints, the promoter failed to issue allotment letters/BBAs in the government-mandated format, constituting a breach of Section 13. These cases have been recommended for penalties under Section 61.
Panchsheel Buildtech:
A similar breach of Section 13 was found for the non-registration of allotment letters in the required format. The case has been referred for action under Section 61.
Gaursons Realtech:
In one instance, the company violated a status quo order from the bench, which was deemed a Section 63 violation. This case has been forwarded for a penalty under Section 61.
Mahalaxmi Infrahomes:
The company’s preliminary objection included false and misleading information, which the bench described as a waste of the court’s time and resources. A penalty of ₹10,000 has been imposed.
Gaursons Hi-Tech Infrastructure:
In four complaints, the preliminary objections were found misleading and indicative of intentional negligence. The company has been ordered to pay ₹25,000 per case, totaling ₹1,00,000.
