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The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has fined Ansal Properties INR 14.41 crore for executing 329 sale deeds in unregistered areas of Sushant Golf City, Lucknow, violating Section 3 of the RERA Act. Despite multiple notices and hearings, Ansal Properties failed to provide satisfactory responses. The penalty, calculated at 10% of the sales' estimated cost, must be paid within 30 days. Concurrently, UP-RERA has launched mandatory training for real estate agents to enhance compliance and ethical standards. This dual approach reflects UP-RERA's commitment to ensuring accountability, protecting buyers, and fostering professionalism in Uttar Pradesh's real estate market.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has imposed a significant penalty of INR 14.41 crore on Ansal Properties and Infrastructure. This action follows the execution of 329 sale deeds in unregistered areas of Sushant Golf City, Lucknow, from March 26, 2022, to August 14, 2024. The authority found that these transactions violated Section 3 of the RERA Act, which mandates that all real estate projects must be registered before sales can occur. Advertisement
The sale deeds executed unlawfully by Ansal Properties were spread across several sectors within Sushant Golf City. In Sector M, there were 58 sale deeds in Pockets 1A and 2, while Sector H saw 136 sale deeds across Pockets 1, 2A, 2B, 2C, and an extra unregistered pocket. Additionally, Sector J recorded 48 sale deeds in Pocket 1, Sector G had 82 sale deeds in Pockets 3B and 5, Sector F contained 4 sale deeds in Pocket 2A, and Sector B included 1 sale deed in Pocket 4.
Despite receiving a show-cause notice from UP-RERA regarding these violations, Ansal Properties failed to respond adequately. The authority provided multiple opportunities for the company to present its case, including a personal hearing during their 161st meeting. However, the response from Ansal was deemed insufficient, as they submitted a single consolidated reply instead of addressing each notice individually.
UP-RERA conducted a thorough examination of the case and concluded that Ansal Properties violated the RERA Act by executing sales in these unregistered areas. As a result, the authority calculated the penalty based on 10% of the estimated cost of the sales in the unregistered pockets, leading to the hefty fine. Ansal Properties is required to deposit the penalty within 30 days, with failure to comply potentially resulting in further legal action.
In addition to this enforcement action, UP-RERA has recently launched a training program for real estate agents. This initiative aims to ensure that agents understand the RERA Act, its rules, and the ethical standards expected when dealing with clients. The training is mandatory for both existing agents and those seeking new registrations.
The second phase of this training program was inaugurated on January 6, 2025, by UP-RERA Chairman Sanjay R. Bhoosreddy. He highlighted the importance of this program in fostering accountability and professionalism in the real estate sector. Agents must pass a written examination following the training to qualify for RERA registration.
This dual approach by UP-RERA-penalizing violations while promoting education-reflects a broader commitment to improving the real estate landscape in Uttar Pradesh. By enforcing regulations and enhancing the skills of real estate agents, the authority aims to protect buyers and ensure fair practices in the market.
As the real estate sector continues to grow, it is crucial for all stakeholders, including developers and agents, to adhere to regulations that safeguard consumer interests. The actions taken by UP-RERA serve as a reminder that compliance with the law is essential for maintaining trust in the real estate market.
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