UP-RERA Imposes Penalty for Misuse of Legal Process: A Step Towards Fairness in Real Estate

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has taken a significant step by penalizing an allottee for repeatedly misusing legal processes. UP-RERA imposed a penalty of Rs 5,000 on the allottee following their fourth complaint, demonstrating a strong stance against the misuse of legal mechanisms in the real estate sector.

This action comes in response to a growing trend of allottees filing repetitive complaints on the same matter, which not only burdens the regulatory system but also delays justice for genuine grievances. Sanjay Bhoosreddy, Chairman of UP-RERA, expressed concern over this trend, stating that the authority already handles a significant number of complaints in the country. He emphasized UP-RERA’s commitment to addressing genuine grievances promptly while deterring unscrupulous individuals from exploiting the system.

The allottee’s case serves as a cautionary tale for others considering similar actions. The first complaint, related to the possession of their unit with interest for delay, was resolved with the promoter providing possession along with a registered sub-lease deed and payment of the delay interest, totaling approximately Rs. 2.68 lakh. Subsequently, the allottee filed a second complaint seeking similar relief, which was dismissed as the matter had already been decided.

Despite the dismissal, the allottee filed a third complaint seeking compensation, which was resolved with an order for payment of Rs 50,000. However, the allottee filed a fourth complaint seeking relief on grounds that had already been considered and adjudicated upon in earlier orders, leading to the imposition of the penalty.

UP-RERA’s decision to penalize the allottee underscores the authority’s commitment to ensuring fair and efficient resolution of disputes in the real estate sector. It also sends a clear message that the misuse of legal processes will not be tolerated. The penalty aims to protect the interests of genuine allottees while discouraging others from abusing the system.

Overall, UP-RERA penalty for misuse of legal process sets an important precedent for the real estate sector and emphasizes the authority’s dedication to upholding transparency and fairness.

Read more: Land Deals in FY 2024: Insights into Real Estate Transactions in Gurugram and Delhi-NCR

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