UP-RERA tight noose on defaulting builders The real estate regulator has imposed Rs 4.4 crore penalty on 25 builders for non-compliance of its orders The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has started tightenign noose around builders over non-compliance of its orders. A combined penalty of Rs 4.4 crore has been imosed so far on 25 builders including some big players...
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UP-RERA tight noose on defaulting builders
The real estate regulator has imposed Rs 4.4 crore penalty on 25 builders for non-compliance of its orders
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has started tightenign noose around builders over non-compliance of its orders.
A combined penalty of Rs 4.4 crore has been imosed so far on 25 builders including some big players of the reat esate sector of Delhi National Capital Region (NCR) over the past three weeks.
In the first lot, a penalty amounting to Rs 2.3 crore was imposed on 11 builders on 24 January 2021 for non-compliance of its orders, while in the second lot the regulator imposed penalty totalling Rs 1.9 crore on 14 other builders on 5 February for failing to adhere to its earlier directions.
The idea behind making the builders who have failed to deliver projects in time is aimed at giving relief to the homebuyers who have invested money in these projects.
The names of Parth Infrabuild, Radicon Infra, IVR-Prime, Logix Infrastructure, Harsha Associates, Parsvnath Developers.Green Bay Infra, Green View Cooperative, Quality Township, Rudra Buildwell, Buland Buildtech, Kindle Infraheights, JSS Buildcon and Supertech figure in the second list of defaulting builders announced on 5 February.
The regulator has started giving one-to-one hearing on a daily basis to the builders shaken by the order and imposition of fine. The orders were passed under Section 63 of teh RERA Act. Section 63 of the RERA Act empowers the regulator to impose of fine worth five per cent of the project cost in case of violation of the Act.
UP-RERA has made it clear that the fines must be deposited within 30 days from the date of notice.
While one-to-one meeting with the erring builders has started, there is no indication yet if the erring builders would be absolved of the monetary penalty if they start delivering the pending units.
Among the first ones to seek meeting with the regulator include the Supertech Group and Logix, who promised to deliver the pending units within the current year while keeing the regulator informed to escape the fefty fines.
Supertech, which faces prospect of coughting up Rs 34 lakh in penalty, has promised to deliver 7,000 overdue flats in 2021. Supertech gave details of 305 units it delivered to buyers in the month of January. Of these 72 flats were in Noida, 147 in Greater Noida, 12 in Yamuna Expressway and the rest in other parts of the state.
According to a UP-RERA official, the regulator is serious about bringing the erring defaulters to the book for non-compliance of its orders.
Most of the erring builders are accused of stopping contruction activities and diverting the money taken in advance from homebuyers to other projects. This practice has been made punishable under the Real Estate (Regulation and Development) Act, 2016.