UP RERA imposes Rs 1.39-Crore Fine On 13 Real Estate Developers; Check Details
The Uttar Pradesh RERA has imposed a total penalty of over Rs 1.39 crore on 13 real estate developers for not complying with its orders. This is part of the authority’s efforts to ensure enforcement of its orders and provide speedy justice to the aggrieved allottees.
In its 104th meeting held under the chairmanship of Rajive Kumar on September 23, UP RERA reviewed the status of compliance with its orders by the promoters and issued the directive. The Authority said the action of penalty against the guilty promoters is an important step towards compelling them to comply with the orders of the Authority.
The UP RERA said that it decided to impose an appropriate penalty against the promoters to ensure compliance with its orders and protect the interests of the homebuyers. It used powers under Section 38/63 of the RERA Act, which empowers it to penalise the non-compliant promoters with up to five per cent of the project cost.
Subsequently, the Authority decided to impose penalty against the promoters that include SRB Promoters Pvt Ltd, Gardenia India Promoters Pvt Ltd, Earthcon Construction Pvt Ltd, Aura Buildewell Pvt Ltd, and AIMS Golf Town Developers Pvt Ltd.
Recently, the Haryana Real Estate Regulatory Authority (RERA) has put a curb on the sale of two projects in Gurugram — Neo Square and Zen Residence 1 — as their promoters have failed to produce the documents required for registering them with the Authority, a TOI report said. It added that show-cause notices have been served on the two projects.
In Zen Residence 1 at Sector 70A, the Rera has noticed complete negligence. Its one-year one-year extension period of registration has already expired and a large number of documents have not been submitted yet. The RERA has also restrained its promoter not to indulge in any sale in the project.
The Haryana RERA registration and the licence, as on date, of the Neo Square commercial project stand expired, the report said.
In another case, the Maharashtra Real Estate Regulatory Authority (RERA) has allowed a developer, Turf Estate Joint Venture, to de-register a housing project. It said there is no provision in the RERA Act to force completion of the project when the developer had expressed its inability to complete it.
Turf Estate Joint Venture LLP was developing the project, DB Turf View, in South Mumbai. It has also refunded money with interest to two-thirds of the buyers. Five buyers had denied accepting the refund and had challenged the same.
According to a joint report by real estate consultant CBRE and industry body CII, unprecedented sales and launch momentum have been witnessed in the first half of 2022. Property prices have increased across most micro-markets and across segments due to record sales and developers’ decision to pass on rising construction costs to buyers. It, however, said monetary tightening by the RBI to tame inflation could raise financing costs.
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