UP real estate regulator bars Ansal API from sale and transfer of properties for violating norms, slaps Rs 3.05 crore penalty | CPT PPP Coverage

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The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has barred real estate developer Ansal API from the sale and transfer of properties in its projects for violating RERA norms. The real estate regulator also imposed a penalty of Rs 3.05 crore on the promoter for “misappropriation” of funds in its three projects in Lucknow, the Authority noted.

The UPRERA asked the promoter to file an application for registration of unregistered areas of the hi-tech township Sushant Golf City in Lucknow within 15 days. The decision was taken by the regulator in a meeting held under the chairmanship of Rajive Kumar on June 19.

The issue

The regulator noted that there were complaints that the promoter Ansal API was “illegally selling” some of the areas in Sushant Golf City without registering the same with the UPRERA. The promoter was given numerous opportunities to furnish the required information as per a show cause notice dated December 26, 2020, and subsequent notices culminating in the final notice dated April 1, 2023, the regulator said.

“UPRERA, on the basis of whatever documents and details were furnished by the promoter, concluded that the promoter was selling large chunks of the land without registering the same with RERA. Therefore, UPRERA by way of its interim order dated June 19, 2023, decided to prohibit the promoter from making any sale and transfer in the township till further orders,” the Authority said in a statement on June 27.

It also directed the promoter to submit evidence and information by July 25 relating to the transfer of six of the registered projects to other companies in violation of the RERA Act and without the approval of RERA.

The promoter has been asked to explain with supporting evidence whether the area sold to the FSI buyers is part of any of its registered projects, or it is part of an area not registered with RERA. It has sought details of the projects transferred on the area earmarked for group housing and EWS/LIG categories. The builder has also been asked to submit copies of the sale deeds with FSI buyers for transferring FSI to them and to furnish the details of the amount received from such FSI sales, the accounts in which the money has been received and the details of utilisation of such amounts, the Authority noted.

‘Misappropriation of funds’

UPRERA, through a separate decision in the meeting dated June 19, 2023, decided to impose a penalty of Rs 3.05 crore for “misappropriation” of funds and violation of provisions of section 4 and 11 of the RERA Act.

“This decision was taken by UPRERA on the basis of the findings of the forensic audit report of three projects of Ansal API, namely Ansal Business Park, Ansal Business Park-II and Golf Residentia wherein it was found that the promoter has misappropriated a sum of Rs 60.57 crore collected from the homebuyers. The promoter has been directed to deposit this amount with UPRERA in the escrow account of the concerned projects within 30 days,” the Authority noted.

This report will be updated after receiving a response from the builder on these developments.