U.P. RERA issued notice to M3M in violation of Section-3/59, Strict actions on cards
U.P. RERA issued notice to M3M in violation of Section-3/59, Strict actions on cards
: The project at Gautam Budh Nagar will be investigated under the RERA Act
: Preliminary investigation found contravention of Section-3 of RERA Act
: Promotion being done without registration, action will be taken as per law
: UP RERA directs other promoters also, follow RERA Act strictly
: If the unregistered project is not discontinued, the promoter can be imprisoned.
: The real estate sector in Uttar Pradesh will not be allowed to defy the RERA Act
Lucknow/Gautam Buddh Nagar : UP RERA has issued notice to NOIDEA project of M3M India Pvt. Ltd in Gautam Budh Nagar after getting information about violation of RERA Act. U.P. RERA has found that M/s M3M India Pvt. Ltd. has not completed the process of RERA registration of its Project NOIDEA and has started promotion and marketing for sale of the units, which is a direct violation of Section 3 of RERA Act.
Under Section 59 of the Act, the promoter is liable to pay a penalty of up to 10 per cent of the project cost and/or a jail term of up to three years.
UP RERA found that M3M India Pvt. Ltd. did not register the project in RERA and started publicity of the project. The Authority also found that there was evidence of the promoter continuously trying to take his project to the general public through various mediums.
The RERA Act has been enacted to protect the interests of homebuyers and to develop the real estate sector, the RERA secretary said. Any arbitrariness committed by builders prior to the enactment of the RERA Act in the real estate sector in Uttar Pradesh will now be dealt with strict actions. Rajesh Tyagi said that if any other promoters of the state are also found involved in such violations, there will be no delay in the actions.
Instruction: The promoters should strictly comply with Section 3/59
Secretary, RERA, U.P. also stated that in the State of Uttar Pradesh, if any promoter wants to develop any of his projects falling within the purview of the Development Authority, the Section 3/59 of the RERA Act has to be followed with special care.
As per Section 3/59:
3. (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act: Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act: Provided further that if the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local authority, it may, by order, direct the promoter of such project to register with the Authority, and the provisions of this Act or the rules and regulations made thereunder, shall apply to such projects from that stage of registration.
(2) Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be required—
(a) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases: Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act;
(b) where the promoter has received completion certificate for a real estate project prior to commencement of this Act;
(c) for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.
59. (1) If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to ten per cent. of the estimated cost of the real estate project as determined by the Authority. (2) If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent. of the estimated cost of the real estate project, or with both.
