UP RERA Warns Builders Against Handing Over Incomplete Flats
Real Estate

UP RERA Warns Builders Against Handing Over Incomplete Flats

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

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

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App