Latest news with #UttarPradeshRealEstateRegulatoryAuthority
Hindustan Times
12-05-2025
- Business
- Hindustan Times
UP RERA warns developers of up to 5% project cost penalty for handing over incomplete flats to homebuyers
Acting on complaints by homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has directed all developers to immediately stop handing over incomplete apartments or bare shell units to homebuyers and warned that this could attract penalties up to 5% of the real estate project's total cost. The order, issued on May 8, said that RERA clearly states that possession can only be offered after full completion of the apartment, all promised amenities are in place, and a registered sale or lease deed has been executed. The directive, issued under Section 37 of the Rera Act, 2016, aims to protect new buyers from being forced to accept bare-shell flats, a practice that UP-Rera has deemed both illegal and a serious violation of the law, a report published in the Hindustan Times said. Following complaints from homebuyers, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has directed all developers to immediately cease handing over incomplete apartments, often referred to as 'canvas flats' or bare shell units. The authority warned that violating this directive could result in penalties of up to 5% of the total cost of the real estate project. The order, issued on May 8, emphasizes that possession can only be offered once the apartment is fully completed, all promised amenities are in place, and a registered sale or lease deed has been executed, as mandated by RERA. Issued under Section 37 of the RERA Act, 2016, the directive aims to safeguard new buyers from being pressured into accepting unfinished flats, a practice UP-Rera has declared both illegal and a significant violation of the law, according to a report by the Hindustan Times. 'The promoters found violating these rules can be fined up to 5% of the total project cost under Sections 38 and 61 of the Rera Act,' said Mahendra Verma, secretary, UPRera. 'It has come to the notice of the Regulatory Authority that some of the promoters, when executing the Agreement for Sale (BBA), are making the allottees to agree to the condition of accepting physical possession of canvas flats and are, in fact, handing over possession of canvas flats to such allottees. Any such act by the promoters is contrary to the provisions of the Act and the Rules and defeats the object of protection extended to the allottees through the RERA Act. Therefore, it has become necessary to issue appropriate directions with a view to ensure that the promoters strictly adhere to the provisions of the Act and the Rules in this behalf and the interest of the allottees are not compromised in any manner whatsoever,' the notice reads. Uttar Pradesh building bylaws state that a real estate developer must secure multiple no-objection certificates — including fire safety, dues clearance, and provisions for parks, lifts, pools, and other common services — before applying for an OC. Once all parameters are met, the Noida Authority inspects the site. Only after OC is granted can possession be legally handed over. Without an OC, giving possession is illegal, officials told the Hindustan Times. The authority said physical possession of an apartment can only be transferred after the builder obtains a completion or occupancy certificate from the competent authority. Further, developers must execute a legally registered agreement before demanding more than 10% of the property cost, officials added. The order defines 'ready-to-move-in' units as those where all internal works — flooring, plumbing, electrical connections, fire safety, doors, windows, and other finishes — are complete and in accordance with what is promised in the brochure and sanctioned plan. According to Rule 1.8(3) of the UP Agreement for Sale Rules, 2018, the price quoted must include land cost, construction charges, development fees, and committed amenities — any deviation is considered default. The UPRERA order said that all the promoters of the projects registered with the Authority shall execute the Agreement for Sale (BBA) with the allottees on the model format laid down under U.P. Real Estate (Regulation & Development) (Agreement for Sale/Lease) Rules, 2018 without altering any of the terms and conditions thereof, in any manner whatsoever. The promoters shall be responsible for obtaining the completion or occupancy certificate of the project, as the case may be, and ensure delivery of physical possession of ready-to-move-in apartments, complete with all specifications, amenities and facilities as provided under the sanctioned plan or/and prospectus and brochures. 'Violation of any of the provisions of the Rules 2018 shall be punishable under Section-38/61 of the Act 2016 with penalty which may extend up to 5 percent of the estimated cost of the project,' the order stated. 'The developers must deliver the apartments once they complete the facilities as per the promises made in the builder-buyer agreement, and also they must fulfil all legal formalities because it is related with safety too,' HT quoted Dinesh Gupta, secretary of the Confederation of the Real Estate Developers Association of India (Credai), as saying Homebuyers have welcomed the UPRera's directive but developers have raised concerns about increasing compliance demands, especially in projects where utility connections or final clearances cause delays.
Hindustan Times
12-05-2025
- Business
- Hindustan Times
Noida: UP-Rera to crack down on handover of incomplete flats
The Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) has directed all developers to immediately stop handing over incomplete apartments to homebuyers, cracking down on errant builders, officials said. The order, issued on May 8, clearly reiterates the law that possession can only be offered after full completion of the apartment, all promised amenities are in place, and a registered sale or lease deed has been executed, they added. The directive, issued under Section 37 of the Rera Act, 2016, aims to protect new buyers from being forced to accept bare-shell flats, a practice that UP-Rera has deemed both illegal and a serious violation of the law. 'The promoters found violating these rules can be fined up to 5% of the total project cost under Sections 38 and 61 of the Rera Act,' said Mahendra Verma, secretary, UP-Rera. To be sure, Uttar Pradesh building bylaws states that a developer must secure multiple no-objection certificates — including fire safety, dues clearance, and provisions for parks, lifts, pools, and other common services — before applying for an all parameters are met, the Noida Authority inspects the site. Only after OC is granted can possession be legally handed over. Without an OC, giving possession is illegal, officials said. The authority said physical possession of an apartment can only be transferred after the builder obtains a completion or occupancy certificate from the competent authority. Further, developers must execute a legally registered agreement before demanding more than 10% of the property cost, officials added. The order defines 'ready-to-move-in' units as those where all internal works — flooring, plumbing, electrical connections, fire safety, doors, windows, and other finishes — are complete and in accordance with what is promised in the brochure and sanctioned plan. According to Rule 1.8(3) of the UP Agreement for Sale Rules, 2018, the price quoted must include land cost, construction charges, development fees, and committed amenities — any deviation is considered default. 'The developers must deliver the apartments once they complete the facilities as per the promises made in the builder-buyer agreement, and also they must fulfil all legal formalities because it is related with safety too,' said Dinesh Gupta, secretary of the Confederation of the Real Estate Developers Association of India (Credai). UPRera's directive has been welcomed by homebuyer groups, while developers have raised concerns about increasing compliance demands, especially in projects where utility connections or final clearances cause delays. 'Many developers citing the financial crisis have given possession to incomplete housing projects without obtaining a mandatory occupancy certificate. As a result, the flat buyer suffers as he is made to live without basic amenities in the society,' said Madhvi Singh, a homebuyer at Supertech Romano, Sector 118. In a related move, the Noida, Greater Noida, and Yamuna Expressway industrial development authorities have made it mandatory to pay stamp duty upfront at the time of booking in all new housing projects, further tightening procedural norms for developers.
Time of India
30-04-2025
- Business
- Time of India
Uttar Pradesh RERA removes 12 employees over integrity issues
NEW DELHI: Uttar Pradesh Real Estate Regulatory Authority ( UP-RERA ) has dismissed a total of 12 employees of different categories in the past years on the basis of doubtful integrity and conduct. These include three junior engineers, two LCRA, one assistant accountant, four computer operators, one help desk employee and one peon. Recently, the anti-corruption team arrested an UP-RERA accountant while accepting a bribe from a homebuyer. Sanjay Bhoosreddy , chairman, UP-RERA said, "An affidavit of integrity is also taken from every officer and employee in RERA. CCTV cameras have been installed in all the rooms in RERA office and the movement of employees and visitors is also monitored by senior officers." The authority also provides continuous training to all employees to improve their skills and discipline and monitors their work. Following the policy of zero tolerance towards indiscipline and misconduct, the authority has also sent a reference to the bar council of Uttar Pradesh in one case for action as per the Advocates Act, 1961.
Time of India
30-04-2025
- Business
- Time of India
Bribery allegations: UPRERA sacks 12 employees
Lucknow: The Uttar Pradesh Real Estate Regulatory Authority announced on Tuesday dismissal of 12 members of staff on various positions, citing integrity concerns, whilst implementing enhanced internal monitoring measures. The announcement follows recent arrest of a UPRERA accountant by an anti-corruption bureau team, following a homebuyer's complaint in Greater Noida regarding bribery allegations . UPRERA chairman Sanjay Bhoosreddy confirmed the implementation of rigorous internal surveillance systems to ensure staff accountability and transparency. The authority now requires "an affidavit of integrity" from all personnel. The dismissed staff included three junior engineers, one assistant accountant, four computer operators, one help desk employee and one peon and action was taken at both, Lucknow headquarters and Greater Noida's NCR regional office. To enhance security measures, the authority installed CCTV cameras across RERA offices, with senior officers monitoring staff and visitor movements. Additionally, one case has been forwarded to the Uttar Pradesh Bar Council under the Advocates Act, 1961, demonstrating their strict stance against misconduct. Established in 2017 for homebuyer protection, UP RERA operates with a minimal workforce, maintaining effectiveness through regular training and performance assessment protocols.
Hindustan Times
29-04-2025
- Business
- Hindustan Times
12 UP RERA employees sacked over doubtful conduct in a year
In order to maintain integrity and transparency in its work, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has sacked 12 employees over the past one year due to their doubtful conduct, officials said. There are three junior engineers, two law clerks-cum-research assistants (LCRAs), one assistant accountant, four computer operators, a help desk employee and one peon among those sacked, officials said. According to UP RERA chairman Sanjay Bhoosreddy, an affidavit of integrity is also taken from every officer and employee in RERA. The number of officers and other staff in UP RERA is very less, although the nature of work is sensitive. The regulatory authority also provides training to all employees to improve their skills. According to the officials, CCTV cameras have been installed at all rooms in the RERA office and the movement of employees and visitors is also monitored by senior officers. Following the policy of zero tolerance towards indiscipline and misconduct, RERA has also sent a reference to the Bar Council of Uttar Pradesh in one case for action under the Advocates Act, 1961 The RERA headquarters is in Lucknow since 2017 and the NCR regional office in Greater Noida since 2018. RERA was established to fix the accountability of developers of real estate projects and to protect the interests of consumers.
