The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) Appellate Tribunal has directed a real estate promoter of a residential cluster in Greater Noida’s Sector-27 to pay interest to homebuyers for delayed possession and refund amounts collected for a proposed master club and golf course. The order, passed on Saturday, also mandates the promoter to comply with several corrective measures within a stipulated time frame.
The tribunal, headed by Justice Suneet Kumar and administrative member Rameshwar Singh, dismissed the appeals filed by the promoter against a March 7, 2024, order issued by UP RERA. The appellate body upheld the regulator’s findings, noting serious lapses in compliance and transparency from the early stages of the project.
In its observations, the tribunal stated that “the promoter was engaged in fraudulent, unfair, and deceptive practices since the project’s inception.” The bench found that homebuyers were consistently misled regarding the nature of the project, ownership rights, and charges levied for common amenities such as the master club and golf course. According to the tribunal, these charges were used as a pretext to delay possession and execution of conveyance deeds.
As part of the ruling, the promoter has been directed to pay interest on delayed possession to affected homebuyers within 45 days. Additionally, the tribunal ordered the refund of amounts collected for the township’s master club and golf course, which were found to be unjustified. The promoter must also pay litigation costs of ₹50,000 to each respondent within the same 45-day period.
The tribunal also instructed the promoter to sign a correction deed to amend the deficiencies in the registered tripartite sub-lease deed. It observed that the document did not have important details like the size of the plot, the exclusive area, the boundary and the undivided share of the land, which are all mandatory disclosures according to the law.
Emphasizing the magnitude of the alleged misconduct, the tribunal noted that the promoter had made a collection of about ₹100 crore from the allottees through the club and golf course-related charges. It decided that such collection amounted to cheating homebuyers and thus, the promoter's actions were in violation of the Real Estate (Regulation and Development) Act, 2016, provisions.
The tribunal, apart from the promoter’s behavior, also expressed apprehensions about the regulatory authorities' vigilance. It instructed the principal secretary of the state government to ascertain if the Greater Noida Industrial Development Authority (GNIDA) had violated the norms and building rules while giving approvals to the project. According to the tribunal, the regulatory approvals of GNIDA are being questioned, and hence, it has directed UP RERA to submit the REP plan records, approved layouts, and sub-lease documents for its perusal.
The appellate body, in addition, instructed UP RERA to contemplate the initiation of a penal proceeding against the promoter under the 2016 RERA Act. This, in effect, communicates the gravity of the issues the tribunal has acknowledged. The tribunal’s position, as reflected in its ruling, is that it is not only developers who should be held accountable by regulatory authorities but also the planning agencies that are involved in project approvals.
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