The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has levied fines of ₹5 lakh each on three projects for the promotion and sale of units without the necessary registration, thereby breaching the stipulations outlined in the Real Estate (Regulation and Development) Act, 2016.
This decision was made during the authority’s 198th meeting, where it was determined that ‘Estate 105’ (Max Estate), ‘Sobha Rivana’ (Sobha) in Noida, and ‘Avikalp Estate’ (Dhanushkothi Builder & Developer) in Lucknow were being marketed or sold without securing RERA registration. As per UP-RERA, these projects were advertised via digital channels and, in one instance, units were sold without registration, violating section 3 of the Act, which requires registration prior to any marketing, booking, or sale activities.
The authority had sent notices to the promoters requesting explanations, but deemed the responses inadequate, leading to the imposition of penalties under Section 59 of the Act. According to the law, projects with a land area of 500 sq metres or more than eight units must be registered with RERA before they can be launched or promoted.
Breaches can incur fines of up to 10% of the project cost, and persistent non-compliance may result in additional penalties or imprisonment. UP-RERA stated that this action is part of its ongoing initiatives to combat unauthorized project promotion and enhance compliance within the sector.
In the last six months, the Authority has imposed fines totaling ₹63 lakh on 13 projects for similar infractions across various cities, including Noida, Ghaziabad, Lucknow, and Mathura. Sanjay Bhoosreddy, chairman of UP-RERA, emphasized that the promotion or sale of unregistered projects constitutes a serious violation and that enforcement measures will persist to ensure transparency and protect the interests of homebuyers.
