Penalty of ₹5 Lakh Each Imposed on 3 Projects in the Authority Meeting by Rera

RERA Cracks Down on Promotion of Unregistered Projects; ₹63 Lakh Penalty Imposed on 13 Projects in the Last Six Months

Lucknow / Gautambuddh Nagar, March 19, 2026:

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has intensified its enforcement against the illegal promotion of real estate projects, imposing a fresh penalty of ₹5 lakh each on three prominent developments. During its 198th Authority meeting, the regulator penalized “Estate 105” by M/s Max Estate, “Sobha Rivana” by Sobha Limited, and “Avikalp Estate” by Dhanushkothi Builder & Developer. The action was taken following confirmed violations of Section 3 of the Real Estate (Regulation and Development) Act, 2016, which mandates registration before any marketing or sales activity UPRERA said in a press statement. 

Under the RERA Act, any project exceeding 500 square meters or comprising more than eight apartments must be registered before a promoter can initiate advertisements, bookings, or sales. Investigations revealed that the Noida-based projects by Max Estate and Sobha Limited were being promoted via websites without the required RERA credentials. Similarly, the Lucknow-based Avikalp Estate was found to be selling units without registration. Despite being issued prior notices to explain these lapses, the promoters submitted responses that the Authority deemed “unsatisfactory,” leading to the financial penalties under Section 59 of the Act.

This latest move is part of a broader, six-month crackdown during which UPRERA has penalized 13 projects with fines totaling ₹63 lakh. High-profile developers facing penalties include SRSD Buildcon Venture, Pardos Developers, Eldeco Homes, and Sanfran Developers, with individual fines ranging from ₹4 lakh to ₹5 lakh. The regulator warned that continuing violations of Section 3 can lead to much harsher consequences, including a penalty of up to 10 percent of the estimated project cost or imprisonment for up to three years.

The Authority’s recent actions are viewed as a critical step toward ensuring transparency and protecting the financial interests of homebuyers from misleading advertisements. By targeting unregistered projects across Noida, Lucknow, Ghaziabad, and Mathura, RERA aims to instill market discipline and ensure that all developments are fully vetted and accountable to the law before reaching the public.

Reiterating the regulator’s uncompromising stance, UPRERA Chairman Sanjay Bhoosreddy emphasized that the Authority would continue to prioritize the rights of consumers over non-compliant businesses. “The Authority is committed to ensuring transparency, accountability, and discipline in the real estate sector. Promotion or sale of any project without registration is a serious violation of the Act, and no leniency will be shown in such matters. Protecting the interests of homebuyers remains the top priority, and strict action against defaulting promoters will continue in the future,” Bhoosreddy stated.

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