The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed fines on multiple builders and developers under Section-63 of the RERA Act. This list includes notable names like Supertech, Mahagun India, Ansal Properties and Infrastructure, and Logix Infrastructure. The penalties have been instituted due to non-compliance with orders issued by the authority.
In total, the fine assessed amounts to ₹1.24 crore, which affects various other developers as well, including Sare Saamag Realty, T.G.B. Real Estate, Nivas Promoters, Newtech Promoters and Developers, I.V.R. Prime Developers, Logix City Developers, and La Residentia Developers.
UP-RERA has mandated that these developers adhere to the orders and pay the fines within a month’s time; failure to comply will result in the fines being treated as arrears of land revenue.
Show-Cause Notice to Ansal API-
UP-RERA has canceled the registration of the Ansal API project located at Pocket 4, Sector-O, Sushant Golf City. The authority issued a show-cause notice to the developer back in May 2019, citing violations of registration terms and conditions.
After reviewing the developer’s response, the authority placed a temporary hold on the show-cause notice for a period of four months, provided the developer met nine specific conditions outlined in the related order. Due to non-compliance, UP-RERA ordered on 5 September 2020 that Ansal API submit a compliance report.
Following the review of Ansal API’s response dated 14 October 2020 and their oral presentations, the authority made a decisive move to revoke the project’s registration based on several infractions:
Violations by Ansal API developer-
- Irregularities were noted in the sale of project units.
- The developer collected funds from allottees sans a sanctioned map of the project, constituting illegal trading practices.
- There has been no work conducted by the developer for the past nine years, dating back to 2011.
- A sum of ₹16.03 crore received from allottees was mismanaged.
- Required compliance documents, including project QPR, were not submitted on the authority website.
- Guidelines set forth by local authorities regarding allottee complaints were ignored.
As a result, the authority has restricted the developer’s access to the project registration page on its website and froze the project’s escrow account at HDFC Bank, Hazratganj branch. To further facilitate the completion of the project in compliance with RERA Section 8, a project monitoring and advisory committee has been established, led by UP-RERA member Bhanu Pratap Singh.
UP-RERA’s actions aim to safeguard the interests of home buyers while ensuring adherence to RERA regulations. This is the third project registration cancellation involving Ansal API by the authority.
Hearing Option is Available-
UP-RERA has chosen to afford parties an opportunity for physical hearings starting from 1 May 2021, contingent on stringent compliance with Covid-19 protocols where applicable. It should be noted that parties cannot modify their choice of opting for physical hearings once selected.
Additionally, the authority is reviewing complaints through virtual platforms via an electronic legal system, which takes into consideration the ongoing need for Covid-19 precautions.