Builders who failed to comply with an Uttar Pradesh Real Estate Regulatory Authority (UP RERA) order to handover possession of units may now have to cough up a cumulative Rs 200 crore as penalty.
Presently, more than 15 developers, the Ghaziabad Development Authority and Greater Noida Industrial Development Authority have been issued notices for the non-compliance.
UP RERA identified 397 such projects in Ghaziabad, Noida and Greater Noida. Notices to promoters of the remaining projects would be sent at a later date.
The projects belong to promoters and authorities who missed deadlines to handover possession as stated in their affidavits in the court. The penalties are five percent of the total cost of the 22 projects under review, which belong to these particular 15 developers, UP RERA statement read.
Ajnara Realtech, which is one of the identified builders, may face a penalty of around Rs 31.50 crore. Among others Assotech is looking at close to Rs 15 crore in penalties, Earthcon Universal Infratech at Rs 33 crore, Patel Advance JV at about Rs 27 crore, Logix City Developers at Rs 7 crore, and Newtech Promoters and Developers at about Rs 12 crore.
Show-cause notices were issued to the Ghaziabad Development Authority and Greater Noida Industrial Development Authority, which may have to pay about over Rs 3 crore and about Rs 1,39 crore in penalties, respectively.
Promoters have been issued a show-cause notice to provide reasons for non-compliance and will have to furnish a suitable reply before the authority, the statement added.
As per Section 63 of the RERA Act, if the replies are deemed inappropriate, a penalty of 5 per cent of the total project cost will be levied on the promoters.