The Uttar Pradesh RERA on Saturday took a strict action against real estate developer M3M India, as it issued a notice to it for allegedly starting promotion and marketing for sale of units in a project in Noida, without registering it with the authority in a direct violation of rules.

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The UP Real Estate Regulatory Authority (UP RERA) also warned that if the unregistered project is not discontinued, the promoter can be imprisoned, and cautioned other developers to follow the RERA Act strictly, according to an official statement.

However, the Gurugram-based developer told PTI that the (promotional) campaign which is being projected in Noida, is "purely an extension of M3M's corporate campaign" to bring awareness and sensitise people about the presence of M3M in the city.

"UP RERA has issued notice to NOIDEA project of M3M India Pvt Ltd in Gautam Buddh Nagar after getting information about violation of RERA Act.

"UP RERA has found that M3M India Pvt Ltd has not completed the process of RERA registration of its project NOIDEA and started promotion and marketing for sale of the units, which is a direct violation of Section 3 of RERA Act," UP RERA Secretary Rajesh Kumar Tyagi said in the statement.

"Under Section 59 of the Act, the promoter is liable to pay a penalty of up to 10 per cent of the project cost and/or a jail term of up to three years," Tyagi said.

UP RERA said it has found that M3M India did not register the project with RERA and started publicity of the project. It also found that there was evidence of the promoter "continuously trying to take his project to the general public through various mediums".

"The RERA Act has been enacted to protect the interests of homebuyers and to develop the real estate sector," the RERA secretary said.

"Any arbitrariness committed by builders prior to the enactment of the RERA Act in the real estate sector in Uttar Pradesh will now be dealt with strict actions. If any other promoters of the state are also found involved in such violations, there will be no delay in the actions," Tyagi added.

The UP RERA has instructed promoters of M3M India to "strictly comply" with Section 3/59, which bars a promoter from publicity of any housing project without first getting it registered with the state's RERA.

When contacted, M3M India said the particular campaign mentioned by the UP RERA is not publicity of the project NOIDEA.

"We would like to clarify that the campaign which is being projected in Noida, Uttar Pradesh, is purely an extension of M3M's corporate campaign to bring awareness and sensitise people about the presence of M3M in the city. We have at no point publicised the project," M3M India told PTI in a statement.

"M3M is a law-abiding developer and operates on the principles of corporate governance and ethics, adhering to all the guidelines and policies issued by the state government. M3M India has committed a large investment in Uttar Pradesh, mostly Noida, and will also ensure jobs to thousands of people in the area," the developer added.

(With inputs from PTI)