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The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has recently taken action against five real estate promoters for their violation of Section 11 of the RERA Act. The promoters in question are Attractive Nirman, Basera City Developers, Hallmark Vyapar, Rajeev Son HUF, and Lavish Buildmart, and each of them has been slapped with a penalty of Rs 1 lakh. This penalty has been imposed due to their promotion and advertising of real estate projects without the necessary RERA registration numbers and portal listings.
One of the primary functions of UP-RERA is to regulate the real estate sector in the state, ensuring transparency and safeguarding the interests of homebuyers. As part of this regulation, all real estate projects are required to register with RERA and provide their registration numbers and portal listings in any promotional material. This information is crucial for potential buyers as it allows them to verify the authenticity and legality of the projects they are interested in.
However, the five promoters mentioned above failed to comply with these regulations, which led to the imposition of the penalties. Additionally, they have been instructed to submit affidavits detailing the violations and errors in their advertisements. This requirement is aimed at making the promoters more accountable for their actions and to prevent future violations.
To rectify their past mistakes, the promoters have also been directed to release fresh advertisements with their RERA registration numbers and portal listings prominently displayed. This step is crucial in ensuring that potential buyers have access to the necessary information to make informed decisions regarding their property investments.
According to Pramod Kumar Upadhyay, the Secretary of UP-RERA, the amount of the penalty, which is set at Rs 1 lakh for each promoter, is relatively small when compared to the provisions of the RERA Act. Under the Act, penalties can be as high as 5 percent of the project's cost. However, in this case, the authority considered the specific circumstances and conditions and decided to impose the nominal penalty.
It is important to note that the penalties imposed by UP-RERA are not meant to be punitive but rather to encourage compliance with the law and regulations. By taking such actions, UP-RERA aims to create an environment where real estate developers are incentivized to follow the rules, ultimately benefiting both the industry and the homebuyers.
Each of the promoters involved in this case was promoting various real estate projects in different districts of Uttar Pradesh. Attractive Nirman was marketing its residential project, BCC Greens, while Basera City Developers were promoting BCC Blue Mountain. Hallmark Vyapar, on the other hand, was advertising BCC Sapphire, and Rajeev Son HUF was promoting Wadhwa Palm Regency.
Lavish Buildmart, the fifth promoter penalized by UP-RERA, did include the registration number in their advertisement but omitted the RERA portal listing. Lavish Buildmart was promoting their mixed land-use project, M3M The Cullinan, located in Gautam Buddh Nagar.
In conclusion, the actions taken by UP-RERA against these promoters serve as a reminder of the importance of transparency and compliance within the real estate industry. By imposing penalties and requiring the submission of affidavits, UP-RERA is reinforcing the significance of adhering to the provisions of the RERA Act. It is crucial for both real estate developers and homebuyers to be aware of and abide by these regulations to ensure the integrity and credibility of the real estate market in Uttar Pradesh.
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