UP RERA prohibits Ansal API to sell properties for violating norms; imposes Rs. 3.05 crores fine

UP RERA prohibits Ansal API to sell properties for violating norms; imposes Rs. 3.05 crores fine

The decision was taken during a meeting held under the Chairmanship of Rajive Kumar on 19 June

The Uttar Pradesh Real Estate Regulatory Authority (RERA) has barred Ansal API from selling and transferring its properties due to a violation of RERA norms related to its projects. It imposed a penalty of Rs. 3.05 crores on the promoter for “misappropriation” of funds in its three projects in Lucknow.

The real estate regulator directed the Promoter to file an application for registration of unregistered areas of the hi-tech township Sushant Golf City in Lucknow within 15 days.

RERA noted the complaints against Ansal API for “illegally selling” some areas in Sushant Golf City without mandatory registration. Importantly, a 26 December 2020 show-cause notice and subsequent notices culminating in the final 1 April 2023 notice were served, providing the promoter with numerous opportunities to furnish the required information.

In a statement, the regulatory authority said, “UP RERA, on the basis of whatever documents and details were furnished by the promoter, concluded that the promoter was selling large chunks of land without registering the same with RERA. Therefore, UP RERA by way of its interim order dated June 19, 2023, decided to prohibit the promoter from making any sale and transfer in the township till further orders.”

RERA also directed the Promoter to submit evidence and information by 25 July relating to the transfer of six of the registered projects to other companies in violation of the Real Estate Regulatory Authority Act and without its approval.

Ansal API is required to explain with supporting evidence whether the area sold to the FSI buyers was part of any of its registered projects, or it was part of an area not registered with RERA. It also sought details of the projects transferred to the area earmarked for group housing and EWS/LIG categories.

The builder has also been ordered to submit copies of the sale deeds with buyers for transferring FSI to them and to furnish details of the amount received from such sales. It includes the accounts in which the money was received and the details of the utilization of the amounts.

Through a separate decision, UP RERA imposed a penalty of Rs.3.05 crores on Ansal API for embezzlement of funds and violating the provisions of Sections 4 and 11 of the RERA Act.

The authority held, “This decision was taken by UP RERA on the basis of the findings of the forensic audit report of three projects of Ansal API, namely, Ansal Business Park, Ansal Business Park-II and Golf Residentia, wherein it was found that the promoter has misappropriated a sum of Rs.60.57 crores collected from the homebuyers. The promoter has been directed to deposit this amount with UP RERA in the escrow account of the concerned projects within 30 days.”