The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has ordered strict action against several major real estate developers, including Mahagun Group and Gaursons Group, after finding multiple violations of the Real Estate (Regulation and Development) Act, 2016. The authority made it clear during its latest hearing that repeated violations and disregard for homebuyer complaints will not be tolerated.
Stern Action Against Violators
In its hearing held on Monday, the UP RERA bench imposed fines, issued strict warnings, and referred multiple cases for punitive action under Sections 13, 61, and 63 of the RERA Act. These provisions allow for penalties, fines, and other corrective measures against developers who fail to comply with statutory obligations.
Most of the projects under scrutiny are located in western Uttar Pradesh, particularly in Noida and Ghaziabad, which remain high-demand real estate hubs.
Major Developers Penalized
Mahagun Group
-
Faced 16 complaints filed by homebuyers.
-
Inquiry revealed that the company uploaded electrical drawings as electrical NOCs, misleading buyers and the regulator.
-
Despite prior warnings, the developer failed to make corrections.
-
The matter has been referred to the UP RERA Secretary for strict punitive action.
Mahalaxmi Group
-
Found guilty in nine complaints.
-
Failed to register allotment letters (Builder-Buyer Agreements) in the prescribed format.
-
The matter has been referred for further action.
SJP Hotels and Resorts Pvt Ltd & Panchsheel Buildtech Pvt Ltd
-
Both developers were found guilty of not issuing allotment letters in the prescribed RERA format.
-
Their cases were referred for further proceedings.
Gaursons Realtech Pvt Ltd
-
Violated a status quo order passed by the authority.
-
The matter has been sent for punitive action.
Mahalaxmi Infrahomes Pvt Ltd
-
Imposed with a fine of ₹10,000 for submitting incorrect objections.
Gaursons Hi-Tech Infrastructure Pvt Ltd
-
Faced costs of ₹25,000 per case, totaling ₹1,00,000 across four cases, for presenting misleading objections.
Legal Framework and Penalties
Officials confirmed that actions were initiated under Sections 13, 61, and 63 of the RERA Act:
-
Section 13: Ensures proper execution of Builder-Buyer Agreements in the prescribed format.
-
Section 61: Provides penalties for non-compliance with provisions of the Act.
-
Section 63: Allows for additional penalties for failure to comply with directions issued by the authority.
Significance of the Ruling
This action by UP RERA highlights its determination to safeguard homebuyer rights and enforce transparency in the real estate sector. By penalizing leading developers for violations, the authority has sent a strong message that misleading information, non-compliance, and defiance of regulatory directions will invite strict action.
Conclusion
The crackdown on Mahagun, Gaursons, Mahalaxmi, and others marks one of the strongest recent enforcement actions by UP RERA. With increasing homebuyer complaints in Noida and Ghaziabad, the regulator’s firm stand is expected to boost accountability, compliance, and consumer confidence in the state’s real estate sector.
