UP RERA Orders Punitive Action Against Mahagun Group Over 16 Complaints Including Misleading Portal Submissions
UP RERA Takes Punitive Action Against Mahagun Group for 16 Violations
On September 29, 2025, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) ordered strict action against multiple real estate developers, including Mahagun and Gaursons groups, over violations of norms and complaints filed by homebuyers.
Misleading Portal Submissions
Mahagun Group faced 16 complaints, and an inquiry revealed that the company uploaded electrical drawings on the RERA portal as an electrical NOC, thereby furnishing misleading information. Despite earlier warnings, no correction was made, and the cases have been referred to the UP RERA Secretary for strict punitive action.
This violation represents a significant breach of transparency requirements. The RERA portal is designed to maintain accurate compliance documentation; submitting engineering drawings in place of formal certification obscures the actual status of approvals and poses risks to homebuyers.
Regulatory Framework and Penalties
The UP RERA bench reiterated that violations of the Real Estate (Regulation and Development) Act "would not be tolerated." Proceedings under Sections 13, 61 and 63 of the RERA Act were invoked in these cases, providing for penalties ranging from fines to strict punitive measures for repeated violations.
Under Section 61 of the RERA Act, if a promoter violates any provision of the Act, the penalty can extend up to 5% of the estimated project cost. Section 63, titled 'Penalty for failure to comply with orders of Authority by promoter', provides that if a promoter dodges an order issued by RERA, the penalty would be up to 5% of the estimated project cost.
Scope of Action in Western Uttar Pradesh
The latest RERA action largely involves projects located in western Uttar Pradesh, including Noida and Ghaziabad. Multiple developers faced action in the same hearing. Mahalaxmi Group was found guilty in nine complaints for failing to register allotment letters (Builder-Buyer Agreements) in the prescribed format, a violation of the law. Gaursons Realtech Pvt Ltd was found violating a status quo order, and the matter has been referred for punitive action.
Mahagun Group's Developer Portfolio
Mahagun Group is a conglomerate of companies operating in real estate, commercial and hospitality sectors, with an organization of engineers and space planners that have sustained professional excellence for more than 4 decades. The group has already delivered approximately 10 million square feet of residential space covering about 6,500 units, with projects involving development of approximately 16 million square feet covering about 10,500 units currently under execution.
Broader Enforcement Push
The September 2025 hearing reflects intensified oversight by UP RERA. Violations involving documentation, compliance certification, and regulatory submission accuracy are being treated as material breaches that undermine homebuyer protection. The referral of Mahagun cases to the UP RERA Secretary signals that this matter has been escalated beyond the initial authority hearing and may result in formal prosecution, substantial fines, or remedial orders.