UP-Rera fines developer ₹93 lakh for not executing ts order

In a landmark order, Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) imposed a penalty of ₹93 lakh on Mascot Homes Private Limited for failing to comply

In a landmark order, Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) imposed a penalty of ₹93 lakh on Mascot Homes Private Limited for failing to comply with its order to refund 31 buyers of its Manorath project in Greater Noida West.

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This is the first time that the UP-Rera has fined a developer for not complying with its refund order.

“The developer shall refund money to 31 complainants along with interest till December 31, 2020 and we have also levied a penalty of ₹93 lakh for failure to comply with the Rera order. The penalty amount will be deposited in Rera account. Penalty was calculated at the rate of ₹1000 per day of delay,” said Balvinder Kumar, UP-Rera member and presiding officer, bench 2 at Rera’s Greater Noida office. “Further if amount of penalty and refund is not paid by December 31, 2020 we will issue recovery certificate against the promoter to recover the amount. District administration will then recover the amount from the promoter. The promoter’s property will be attached and bank accounts seized.”

On January 31, 2019, the promoter was ordered to give possession to buyers by June 2019 alongwith delayed interest, failing which the buyers would have the right to claim refund.

In August 2019 ,complainants approached the authority for execution of the order, following which Rera issued notices to promoter who promised to give possession by January 2020, which too it failed to do.

On March 16, 2020 both parties appeared on hearing date. Promoter sought time to refund buyers’ money in instalments but did not give affidavit. Bench had then ordered refund in instalments and the first installment was to be paid by April 30, 2020 and the compliance date was on May 4, 2020. The promoter again did not comply with Bench orders. No compliance was submitted with regards to payment of 1st installment by the Promoter.

Promoter’s advocate Manendra Kumar said, “We will challenge the order at higher appellate authority in Lucknow.”