Status as on- 18/02/2021
The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has imposed a cumulative penalty of over Rs 1.93 crore to 14 promoters over non-compliance of its orders under Section 63 of the RERA Act, 2016 (“Act”).
The list of promoters which have been penalized by the UP-RERA are as follows:-
- Parth Infrabuild,
- Radicon Infrastructure & Housing,
- IVR Developers, Logix Infrastructure,
- Harsha Associates,
- Parsvnath Developers,
- Green Bay Infrastructure,
- Green View Cooperative Housing Society,
- Quality townshipm Rudra Buildwell,
- Buland Buildtech,
- Kindle Infraheights,
Analysis of Section 63 of the Act:
Section 63 of the Act empowers the authority to impose penalties up to 5 percent of the cost of the project for non-compliance of its orders. The Section 63 of the RERA Act is reproduced as under:
“If any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of the real estate project as determined by the Authority.”
Order of the UP-RERA:
The Ratio-decided of the order is as follows:-
- The Authority imposed the penalty of Rs. 1.93 crores on the 14 promoters.
- Also, the Authority has noted that the penalty will be imposed on a daily basis under Section-63 of the Act. Further, the Authority ordered that the increase in penalty amount at the same daily rate will continue to happen till the time the promoter deposits the penalty amount and ensures full compliance of the order of the authority.
- The promoters have been ordered by the authority to ensure that the penalty amount is deposited through a demand draft drawn in favour of the authority within 30 days.
- It was also decided by the Authority that if the concerned promoter does not pay the penalty within the stipulated period, then the recovery certificate will be issued and District Magistrate will be commissioned to recover the amount as arrears of land revenue.
The decision comes after the various instances of non-compliance of the order by the promoters, the authority has taken this strict step to punish the promoters who are continuously failing to comply with the orders, result of which the allottees are being denied their dues.
The authority is taking the compliance of orders passed seriously in order to provide justice to the home buyers.
Disclaimer – The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at firstname.lastname@example.org