RERA Imposes Rs 2.5 Crs penalty on developers for failure to comply the RERA orders


Status as on- 28/01/2021                   

The Real Estate Regulatory Authorityof Uttar Pradesh (UPRERA) has imposed penalty of Rs 2.5 crore against 11 developers for failing to comply with the authority’s order, which were in favor of homebuyers.

Brief of RERA

The Real Estate (Regulation and development) Act, 2016 (RERA) is an Act which was passed to protect the interests of home buyers and to boost investments in the real estate sector. For long, homebuyers have complained the real estate transactions were lopsided and heavily in favour of the developers. It was high time for the government to pass such an Act which protects the interests of the homebuyers and prevent malpractices and such conducts by the developers. Hence, RERA makes it mandatory for each state and UT, to form its own regulator and frame rules that will govern the functioning of the regulator.

Recent Action by RERA

Recently, some UP based developers were observed violating the rules/regulations of RERA and were not following the orders of the authority. Therefore, the Authority had to pass some rigorous orders against the said 11 developers imposing heavy penalty of Rs 2.5 crore in its 54th meeting.

The authority had passed its order under section 63 the RERA Act which empowers the authority to impose penalty and pass related orders which it deems fit in case the promoter fails to comply with, or contravenes any orders or directions of the Authority. The authority is authorized to impose penalties up to 5% of the cost of the project.

UP-RERA chairman Mr. Rajiv Kumar said that more such penalties against promoters and developers may be made in the future. The violations are mainly of completion deadlines, flat handovers and refunds.

Some of the renown developers like Newtech promoters & developers Pvt Ltd., Supertech Ltd., Lucknow Development Authority, Tulsiani Construction and Developers Pvt. Ltd, Antriksh Realtek Pvt. Ltd. are involved in the violation of the orders of the Authority and hence the Authority has imposed heavy penalties on these developers. The promoters will have to deposit the fine within 30 days, failing to do which recovery certificated will be issued by the District Magistrates.


RERA once again proved to be the safeguard for homebuyers resolving the issues faced by them and fulfilled the very purpose of the Act that is to protect the interests of the homebuyers and to direct the developers & promoters to act within the limits to the law.

Disclaimer – the above articles is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying on this article. For more information, please contact us at

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