In a landmark move to safeguard homebuyers’ rights, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a strong directive to all real estate developers across the state, prohibiting the handover of incomplete apartments, often referred to as canvas flats. The order was officially issued on May 8, 2025, under Section 37 of the Real Estate (Regulation and Development) Act, 2016.
This action comes in response to a surge in complaints from homebuyers who were being pressured to take possession of incomplete apartments without promised amenities or legal registration of sale deeds.
What the Directive States
The UP-RERA order clearly mandates that developers can only offer possession of residential units after the apartment is fully completed, all promised amenities are delivered, and a registered sale or lease deed has been executed.
“It has come to the notice of the Regulatory Authority that some promoters are handing over incomplete units to allottees by forcing such terms in the Agreement for Sale. Such practices defeat the very purpose of buyer protection enshrined under the RERA Act,” said Mahendra Verma, Secretary, UP-RERA.
Developers violating this order risk facing penalties of up to 5% of the total cost of the real estate project, as per Sections 38 and 61 of the RERA Act.
Why the Ban on Canvas Flats?
Bare shell apartments or “canvas flats” refer to partially constructed homes that lack essential fixtures such as flooring, wiring, plumbing, kitchen fittings, and bathrooms. While some developers label them as a feature offering customization, UP-RERA has declared the practice illegal and misleading.
The authority noted that many Agreements for Sale (Builder-Buyer Agreements) were being misused to make buyers agree to these conditions, which is a clear violation of RERA norms and compromises the interests of the allottees.
Legal Enforcement and Buyer Protection
The May 8 directive reaffirms that promoters must comply with the Act and Rules, ensuring that no possession is handed over unless the flat is fully ready for occupation as per agreed specifications. UP-RERA’s firm stance strengthens the legal protection available to buyers and serves as a warning to erring developers.
This move is expected to improve compliance in Uttar Pradesh’s real estate market and enhance buyer confidence, especially in high-demand areas like Noida, Greater Noida, Ghaziabad, and Lucknow.
