Ansal API given 30 days to pay up the fine. No plans to de-register the developer at this stage
An order that is likely to set a precedent for others, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has imposed a penalty of Rs 1 crore on Ansal API for violating its October order. The developer has been given 30 days to pay up the fine, sources said.
"We imposed the penalty on Ansal API on June 24. They have not complied with UP RERA order dated October 25, 2018. We had imposed conditions on the developer not to sell, mortgage or transfer any of their assets. We had also ordered that proceeds from homebuyers be set aside in an escrow account. They had been asked to maintain status quo.
"We have received complaints that they have violated the order and conducted transactions. We have, therefore, decided to impose a heavy penalty of Rs 1 crore on them. This will also set a precedent for other developers who decide not to comply with our orders in the future," said UPRERA member Balwinder Kumar.
Kumar told Moneycontrol that there are no plans to de-register the developer at this stage.UPRERA is investigating the realtor's high-rise project in Greater Noida and some other projects spread across Uttar Pradesh. The builder has been under scrutiny for alleged diversion of more than Rs 600 crore paid for by homebuyers and delaying completion of projects in the state.