In a strong enforcement move, the Uttar Pradesh Real Estate Regulatory Authority has imposed a fine of ₹5 lakh each on two builders in Noida for promoting projects without mandatory registration.
The penalised projects include Estate 105 and Sobha Rivana, both found to be marketed online despite not being registered with the authority.
Investigation Reveals Clear Violations
Officials said the developers were actively advertising and promoting the projects through websites, which directly violates provisions of the Real Estate (Regulation and Development) Act 2016.
A similar case was also reported in Lucknow, where Avikalp Estate faced penalties for selling units without proper registration.
Authorities issued notices to the developers, but their responses were deemed unsatisfactory after scrutiny.
What the Law Clearly Says
Under Section 3 of the RERA Act:
●Every real estate project must be registered before promotion or sale
●Applies to projects exceeding 500 sq. metres or having more than 8 units
●Advertising or booking before registration is a punishable offence
Officials emphasized that such violations mislead buyers and undermine transparency in the sector.
Heavier Penalties Possible
RERA clarified that penalties can go much further. Under Section 59:
Builders can be fined up to 10% of project cost
Continued violations may lead to additional fines or even imprisonment
UP RERA Chairperson Sanjay Bhoosreddy made it clear:
“Promotion or sale of any project without registration is a serious violation. No leniency will be shown.”
Big Message for Developers and Buyers
This action sends a clear signal that authorities are tightening oversight in the real estate sector, especially in high-growth regions like Noida.
For buyers, it serves as a reminder to:
●Always check RERA registration status before investing
●Avoid projects being marketed without official approval
Growing Focus on Transparency
With rising real estate activity in NCR, UP RERA is increasing scrutiny to ensure compliance and protect homebuyers.
Experts believe such actions will:
●Improve credibility in the housing sector
●Build investor confidence
●Reduce fraudulent or misleading project promotions
