The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has imposed a penalty of Rs 30 lakh on Mahaluxmi Infrahome and Mahaluxmi Buildtech for collecting more than 10 percent of the unit cost from three buyers without signing and registering an agreement for sale, in violation of section 13 of the RERA Act.
The authority has directed the promoter to deposit the amount within 45 days, failing which a penalty shall also be applicable as arrears on land revenue.
The authority also said that the agreement for sale executed between the buyers and the promoter was not based on the model agreement for sale notified by the Uttar Pradesh government.
Per provisions of section 13 (1) of the RERA Act, a promoter is not allowed to collect more than 10 percent of the unit cost from the buyer without signing and registering the model sale deed. This is mandatory in order to protect the interests of consumers.
A statement issued by the UPRERA on February 18 said that first two matters are in regard to residential units in the Migsun Ultimo project in Gautam Buddh Nagar, developed by Mahaluxmi Infrahome, while the third was related to a commercial unit.
The promoter collected Rs 3.7 lakh from Priyanka Mattu Biswas between February 2019 to September 2019, which was almost 17 percent of the unit cost of Rs 23.12 lakh, and thereafter the promoter signed the sale deed in September 2019.
In the second matter relating to the same project, the promoter collected Rs 9.44 lakh from Rohit Gupta in July 2018, which was almost 33 percent of the unit cost of Rs 28.43 lakh, but signed the agreement only in January 2020.
The third matter pertained to the Migsun Migenet project in Ghaziabad, developed by Mahaluxmi Buildtech. Here, the promoter collected Rs 9.72 lakh from Daya Shankar Dubey in April 2019 for a commercial unit, which was almost 40 percent of the unit cost of Rs 24.45 lakh, but again, signed the agreement for sale only in January 2020.
“Taking the above facts into account, the authority has decided to impose a penalty of Rs 10 lakh for each violation. The authority has directed the promoter to deposit the amount, Rs 30 lakh, within 45 days, otherwise penalty shall be recovered as arrears on land revenue,” the statement said.
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Rajive Kumar, Chairman, UPRERA, said that the authority was taking strict action against erring promoters to protect the interests of homebuyers.
“The authority is fully committed to protect the interests of homebuyers, and the authority is taking all possible steps to regulate the real estate sector of the state according to the RERA Act,” the statement quoted Kumar as saying.
Reacting to the development, Yash Miglani, MD, Migsun Group, said, “As per our knowledge, all units are allotted against a payment of 10 percent only. There could be some misunderstanding in these particular cases. Our legal team is doing a thorough scrutiny of these cases and our next course of action will be decided post the results of that scrutiny.”
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