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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has taken strong action against multiple developers, including Mahagun Group and Gaursons, after receiving complaints from homebuyers. The authority imposed fines, flagged misleading submissions, and referred several cases for punitive steps under Sections 13, 61 and 63 of the RERA Act. These measures mainly concern projects in Noida and Ghaziabad. Developers such as Mahalaxmi Group, Panchsheel Buildtech, SJP Hotels and Resorts, and Gaursons Hi-Tech Infrastructure also faced action for non-compliance. The crackdown highlights increasing scrutiny on real estate practices in the state.
UP RERA, during its latest round of hearings, announced strict action against several developers for violations of the Real Estate (Regulation and Development) Act. The authority stressed that non-compliance with the law would not be tolerated. It levied penalties, referred cases for further action, and initiated proceedings under provisions of the Act that provide for both fines and punitive measures. The majority of the projects in question are located in western Uttar Pradesh, particularly in Noida and Ghaziabad. Advertisement
The Mahagun Group faced the highest number of complaints, with 16 cases brought forward. An inquiry showed that the company had uploaded electrical drawings on the RERA portal as an electrical NOC, which was found to be misleading. Despite repeated warnings, the developer did not make corrections. The matter has now been referred to the UP RERA Secretary for strict punitive action.
The Mahalaxmi Group was held responsible in nine complaints. It failed to register allotment letters (Builder-Buyer Agreements) in the legally prescribed format, which constitutes a violation under the Act. This case has also been referred for further steps.
Other developers too came under scrutiny. SJP Hotels and Resorts Pvt Ltd was found guilty of not issuing allotment letters in the required format. Panchsheel Buildtech Pvt Ltd also did not register allotment letters, and its case has been sent forward for action. Gaursons Realtech Pvt Ltd was accused of breaching a status quo order, leading to referral for punitive measures.
In addition, Mahalaxmi Infrahomes Pvt Ltd was fined INR 10,000 for filing incorrect objections. Gaursons Hi-Tech Infrastructure Pvt Ltd faced heavier penalties, with costs of INR 25,000 imposed in each of four cases, amounting to INR 100,000, for submitting misleading objections.
Officials stated that proceedings under Sections 13, 61 and 63 of the RERA Act were invoked. These provisions allow for penalties, fines, and further punitive measures, especially when developers repeatedly fail to comply.
This development adds to UP RERA's ongoing efforts to ensure accountability in the housing sector. In earlier actions, the authority penalised builders for delays in project completion, unregistered agreements, and misrepresentation of facts. The latest measures underline its intent to deal firmly with recurring violations by well-known developers.
Source PTI
5th Jun, 2025
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