RERA slaps Rs 93 lakh fine on Noida realtor for delay in refund

LUCKNOW: A bench of Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has imposed a penalty of Rs 93 lakh on housing developer giant Mascot Homes Private Limited for delaying refund to buyers who invested in its housing project Manorath in Noida extension. It also directed the company to refund buyers’ money along with interest.
The order was issued by UPRERA’s bench-2 NCR on June 2 on the petition filed by a section of buyers. The order directs the company to give refund to 31 complainants along with interest till December 31, 2020, and deposit the penalty amount of Rs 93 lakh at RERA.
In case the company fails to comply with the directions, UPRERA will issue recovery certificates for the amount payable to customers and fine from builder’s assets, the order said. On the petition of these 31 complainants, the bench on January 31, 2019 had directed the promoter to give the possession of houses to buyers by June 2019 along with occupancy and completion certificates as well as delay interest, else after that the buyer would have the right to claim refund.
The order said the promoter failed to give the possession on time. As a result, it added, the 31 complainants approached the authority in August 2019 again. The authority sent a notice to the builder on September 3, 2019, seeking reasons for non-compliance of the January 31 order.

The promoter replied they will give possession by January 2020. The promoter was served with a show cause notice again on December 2, 2019, and asked to state reason why a penalty may not be imposed under Section 63 of RERA Act for non- compliance of order. The promoter did not respond, after which the authority decided to proceed for action under Section 63. The promoter sought time on March 16, 2010, hearing to refund buyers’ money in instalments. The Bench then asked promoter to submit an affidavit in this regard. However, it failed to file the affidavit with regards to refund.
Subsequently, the bench ordered to return the amount with interest in four instalments, of which first was to be paid by April 30, 2020, with compliance report to UPRERA submitted by May. However, the promoter did not comply with the order, said the bench.