UP RERA Amends Rules: Unregistered Promoters Now Under RERA, Big Relief for Homebuyers

Lucknow, March 27: In a move that promises to bring relief to thousands of property buyers across Uttar Pradesh, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has brought unregistered promoters under its jurisdiction. The amendment, made under Section 85 of the Real Estate (Regulation and Development) Act, 2016, came into effect on March 25, 2026, and allows allottees of unregistered projects to seek compensation, possession, and other remedies through the authority.

Until now, home and shop buyers who invested in projects that were not registered with RERA had limited legal recourse. Many felt cheated as they were unable to approach the regulatory authority for relief. The new amendment addresses this gap and extends RERA's protective umbrella to these aggrieved allottees.

Key Provisions of the Amendment

The amendment has been made under Rules 24 and 47 of the UP RERA General Regulations 2019 through the 10th amendment. The key provisions include:

• Complaint jurisdiction: Unregistered projects and their promoters now fall within RERA's purview

• Hearing of grievances: Complaints from allottees of unregistered projects will be heard by RERA benches

• Relief entitlement: Based on the merits of the case, compensation and other relief can be granted

• Transparent process: A new mechanism through Form-M will be developed on the UP RERA portal for filing complaints

How the New System Will Work

The amendment establishes a clear process for handling complaints from unregistered projects:

1. Filing complaints: Affected allottees can file their grievances through Form-M on the UP RERA portal

2. Determination of registration requirement: The bench will first determine whether the project was required to be registered under Section 3 of the Act and Rule 2(1)(h) of the UP RERA Rules

3. Referral for registration: If the bench concludes that registration was mandatory, it will refer the matter to the Secretary for necessary action to register the project

4. Adjudication on merits: The bench will then consider the allottee's complaint based on the facts and applicable law, and grant appropriate relief

5. Information gathering: Since UP RERA may not have information about unregistered projects, complainants may need to provide additional details for case resolution

Relief from Arbitrary Fees

The amendment also addresses the issue of arbitrary fees charged by unregistered promoters. Key provisions regarding fees include:

• Succession cases: If an allottee dies and the successor is a family member, the promoter cannot charge more than ₹1,000 as processing fee

• Documents required: Death certificate, succession certificate from competent authority, and no-objection certificates from other legal heirs

• Transfer to non-family members: If transfer is to a person other than a family member, the promoter can charge a maximum of ₹25,000 as processing fee

• No new agreement: In such cases, no new sale or lease agreement will be executed; instead, necessary changes will be recorded as an endorsement to the existing contract

Historical Context and Need for Amendment

The amendment comes after significant criticism of UP RERA's functioning. In September 2024, the Supreme Court had made sharp observations about the authority's functioning, remarking that the institution had become a "rehabilitation center for retired bureaucrats." The court had expressed concern over delays and inefficiencies in addressing homebuyer grievances.

Previously, UP RERA had established a special bench in Lucknow and Ghaziabad to handle cases related to unregistered promoters, but this bench was limited to hearing only refund matters. The new amendment expands this scope significantly, allowing all types of grievances—including possession, compensation, and other relief—to be heard and adjudicated.

Impact on Homebuyers

The amendment is expected to benefit thousands of allottees across Uttar Pradesh who invested in unregistered projects. Currently, over 50,000 cases are pending in UP RERA from allottees of registered projects alone. The new provision is likely to add a significant number of new complaints as affected buyers of unregistered projects come forward to seek relief.

UP RERA Chairman's Statement

Sanjay Bhoosreddy, Chairman of UP RERA, stated that the amendment aims to enhance transparency in the real estate sector and protect the interests of allottees.

"This amendment has been made with the objective of increasing transparency in the real estate sector and protecting the interests of allottees. The new provisions will make the grievance redressal process more transparent, effective, and consumer-friendly," Bhoosreddy said.

Outlook

The inclusion of unregistered promoters under RERA's jurisdiction represents a significant expansion of the regulatory authority's reach. For thousands of home and shop buyers who had been left in limbo by projects that never obtained RERA registration, this amendment offers a path to legal recourse.

As the new provisions take effect, UP RERA is expected to issue a formal order and develop the necessary infrastructure on its portal to receive complaints through Form-M. Affected allottees are advised to gather their documentation and approach the authority to seek the relief they are entitled to under the law.