The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has directed developers to stop handing over incomplete flats, also called bare shell or canvas units, warning that such violations may attract penalties of up to five per cent of a project’s total cost.

The order, issued on 8 May 2025 under Section 37 of the Real Estate (Regulation and Development) Act, 2016, states that possession can only be offered after full completion of the apartment, with all amenities in place, and a registered sale or lease deed executed.

UP RERA observed that some developers were inserting conditions in sale agreements requiring allottees to accept incomplete units, which it deemed illegal. Completion or occupancy certificates (OC) from competent authorities are mandatory before physical possession can be transferred.

Developers must also secure all no-objection certificates for safety and services before applying for an OC. Rule 1.8(3) of the UP Agreement for Sale Rules, 2018 mandates inclusion of all costs and facilities in the quoted price.

The directive enforces strict adherence to registered agreement formats and defines “ready-to-move-in” homes as fully finished units. Penalties under Sections 38 and 61 may apply for non-compliance.

Source:Hindustan Times