Penalties Reduced for Ongoing Projects under RERA in UP


Since Real Estate Regulation and Development Act (RERA) has come into force, developers have turned insomnious. The Central Act which is vigilant, plights to bring transparency between consumers and developers and creating more investments for real estate sector has been on its toes.

As per RERA Act, every on-going project needed to register respective State RERA within 3 months of commencement of the Act, which expired on 31/07/2017. The Uttar Pradesh government vide its notification dated 1/08/ 2017 prescribed the following penalties for late registration or non-registration of on-going projects beyond the said date.

Date Rate of Penalty
16/08/2017 to 31/08/ 2017 1% of the cost of the project
1/09/2017 to 15/09/ 2017 5% of the cost of the project
16109/ 2017 to 30/09/ 2017 10% of the cost of the project

In response to civil petition 20019 of 2017, Hon’ble Allahabad High Court held that there were some issues for registration and payment fee on the official website of UPRERA, hence UP State is required to pass an order to dispose of the pending request.

Considering the direction from Hon’ble Allahabad High Court and UP RERA website glitches, UP Government vide its notification as per 59(1) dated 28/09/2017 super ceding its erstwhile notifications in this regards, has prescribed the revised penalties for registration of on-going project beyond its due date which is as under:

Date Rate of Penalty
16/08/ 2017 to 31/10/ 2017 Rs. 1000/-
 1/09/ 2017 to 31/09/ 2017 5% of the cost of the project
 1/12/2017 to 31/12/ 2017 10% of the cost of the project


Any project or promoter which has got RERA registration after paying the penalties as per erstwhile notification may apply for the refund as per the prescribed procedure.

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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