In a landmark judgment, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has directed Azeagaia Development Private Limited, the promoter of the Azea Botanica housing project in Lucknow, to hand over the clubhouse and all common facilities to the Apartment Owners’ Association (AOA).
Common Amenities Belong to Homeowners, Not Developers
Delivering its ruling, the UP-RERA Principal Bench held that all common amenities, including the clubhouse, are meant for collective use by homeowners and cannot be retained, controlled, or commercially exploited by the developer. The authority clarified that these facilities form part of the common areas under the Real Estate (Regulation and Development) Act, 2016, and must be transferred to the association representing the allottees.
Complaint Over Layout Alteration and Misuse of Facilities
The order followed a complaint filed by the Azea Botanica Apartment Buyers Association, which alleged that the promoter had unilaterally altered the approved layout plan and wrongfully attempted to classify the clubhouse and common spaces as “independent areas.” This move, according to the association, was an effort by the developer to retain ownership and generate commercial profits from amenities legally belonging to the residents.
After examining the evidence and submissions, UP-RERA concluded that the promoter’s actions violated the rights of allottees and contravened multiple laws, including:
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The Real Estate (Regulation and Development) Act, 2016
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The Uttar Pradesh Real Estate (Regulation and Development) Rules
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The Uttar Pradesh Apartment Act, 2010
Immediate Transfer and Legal Compliance Ordered
The Authority directed Azeagaia Development Pvt. Ltd. to immediately transfer full possession of the clubhouse and all developed common facilities to the Apartment Owners’ Association. In addition, the promoter has been ordered to handover all original and approved project documents, such as layout plans and details of common areas, to the association for record and transparency.
UP-RERA further emphasized that all sale agreements and conveyance deeds must strictly comply with the statutory provisions under RERA and the state apartment laws.
Penalty Proceedings Under Section 61
In light of the violations, UP-RERA has forwarded the case for penalty proceedings under Section 61 of the RERA Act, which empowers the authority to impose fines for non-compliance or violation of its orders.
A Major Win for Homebuyers
The ruling has been hailed as a significant victory for homeowners, reinforcing the principle that developers cannot override statutory rights or misuse common facilities for personal or commercial gain.
By upholding transparency, accountability, and buyer rights, this judgment sets a strong precedent for similar disputes across Uttar Pradesh and India, reaffirming RERA’s role as a consumer-centric regulator.
