UP-RERA Penalizes Ansal Properties Rs 14.41 Crore for Violating Real Estate Rules
In a major development, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed a significant penalty of Rs 14.41 crore on Ansal Properties and Infrastructure. This penalty was levied for serious violations of the Real Estate (Regulation and Development) Act (RERA), specifically for executing 329 illegal sale deeds in unregistered pockets of Sushant Golf City, Lucknow.
The Violations
Ansal Properties violated Section 3 of the RERA Act, which makes it mandatory for developers to register their real estate projects with RERA before advertising, selling, or signing any agreements for property sales. Despite these legal requirements, the company carried out multiple property transactions without obtaining the necessary approvals and registrations.
The illegal sale deeds were executed between March 26, 2022, and August 14, 2024, across several sectors and pockets in Sushant Golf City, a prominent township in Lucknow.
Unregistered Pockets and Sale Details
Here’s a breakdown of the areas where the unregistered transactions occurred:
- Sector M: 58 sale deeds in Pockets 1A and 2
- Sector H: 136 sale deeds in Pockets 1, 2A, 2B, 2C, and another unregistered area
- Sector J: 48 sale deeds in Pocket 1
- Sector G: 82 sale deeds in Pockets 3B and 5
- Sector F: 4 sale deeds in Pocket 2A
- Sector B: 1 sale deed in Pocket 4
RERA’s Actions and Investigations
UP-RERA initiated an investigation after discovering these unauthorized transactions. The authority issued a show-cause notice to Ansal Properties, requiring them to explain why they bypassed the registration requirements under RERA.
The promoter (Ansal Properties) was given multiple opportunities to respond but failed to provide a valid explanation or rectify the violations. Despite being granted extensions and a personal hearing during RERA's 161st meeting, the company’s responses were deemed unsatisfactory and inadequate.
During the hearing, the promoter requested additional time to submit a written response, which was granted for 15 days. However, when the final response was submitted, it was found to lack legal merit and failed to address the core violations.
Penalty Assessment
After detailed scrutiny of the written submissions and oral arguments, UP-RERA concluded that the response provided by Ansal Properties was neither valid nor did it address the promoter's failure to adhere to the RERA Act by executing sales in unregistered areas. Following comprehensive deliberations, the authority imposed a penalty under Section 59 of the RERA Act, calculated as 10% of the estimated cost of the sale deeds in these unregistered pockets. As a result, the penalty amounted to Rs 14.41 crore, emphasizing the severity of the violations.
Deadline for Payment
Ansal Properties has been directed to deposit the penalty amount within 30 days. If the company fails to comply, further legal action may be initiated under Section 63 of the RERA Act, which includes additional penalties and possible restrictions on their operations.
What This Means for the Real Estate Sector
These developments showcase UP-RERA’s commitment to maintaining transparency, accountability, and buyer protection in Uttar Pradesh’s real estate sector. By holding developers like Ansal Properties accountable and introducing mandatory training for agents, UP-RERA is working to ensure fair practices and rebuild trust in the real estate market.
This incident serves as a reminder for all stakeholders in the real estate industry to adhere to legal requirements and prioritize buyer interests over shortcuts or malpractices.
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