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The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed penalties of INR 5 lakh each on three real estate projects for promoting and selling units without mandatory registration under the Real Estate (Regulation and Development) Act, 2016. The action, taken during the authority's 198th meeting, involved projects in Noida and Lucknow, including Estate 105, Sobha Rivana, and Avikalp Estate. Investigations revealed that these developments were marketed and, in some cases, sold prior to obtaining regulatory approval. UP-RERA noted that developers failed to provide satisfactory responses to notices issued earlier, prompting enforcement action. The move forms part of a broader crackdown on unauthorised real estate activities to enhance transparency and safeguard homebuyer interests.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has intensified its enforcement measures by penalising three residential projects for violating statutory norms related to registration and sales. The regulator imposed fines of INR 5 lakh each on Estate 105 and Sobha Rivana in Noida, along with Avikalp Estate in Lucknow, after determining that these developments were being promoted without prior registration. Advertisement
The action was taken following deliberations in the authority's 198th meeting, where it was found that the projects had engaged in marketing activities through digital platforms and, in certain instances, had accepted bookings or sold units before securing the required approvals. UP-RERA observed that such actions directly contravened Section 3 of the Real Estate (Regulation and Development) Act, 2016, which mandates registration of projects before any form of advertisement, sale, or booking.
Officials indicated that show-cause notices had been issued to the developers, seeking clarification on the violations. However, the responses were deemed unsatisfactory, leading to the imposition of penalties under the relevant provisions of the Act. The authority reiterated that projects exceeding 500 square metres or comprising more than eight units must obtain registration prior to market entry, and any deviation would invite regulatory action.
The regulator also highlighted that the penalties imposed represent only a portion of the potential consequences under the law. Continued non-compliance could result in significantly higher fines up to 10 per cent of the project cost and, in severe cases, further legal action.
This enforcement step reflects UP-RERA's ongoing efforts to strengthen oversight in the real estate sector and curb the practice of unauthorised project launches. By targeting both promotional and transactional violations, the authority aims to ensure that developers adhere strictly to regulatory frameworks designed to protect buyers and maintain market discipline.
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