The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has imposed a ₹5 crore penalty on Vatika Ltd for failing to register its project within the required timeframe. The fine was levied for violating Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.
Vatika Ltd received a license for its residential project, Vatika India Next, in 2013 from the Town and Country Planning (TCP) Department of Haryana. However, the company did not apply for RERA registration within three months after the Act was notified in the state in 2017, only doing so after a 2022 notification from the Haryana government prompted HRERA to take suo motu action.
Arun Kumar, Chairman of HRERA Gurugram, stated, ‘It was an ongoing project, and the promoter should have applied for the RERA registration well on time to avoid penalties. HRERA registration is mandatory for all on-going real estate projects where completion certificates were not issued before the Act came into force in 2016.’
Section 3 (1) of the Act prohibits promoters from advertising, marketing, booking, or selling any part of a real estate project without RERA registration. Following the submission of all mandatory approvals, HRERA approved the project’s registration and concluded the penal proceedings for the violation, which is punishable under Section 59 of the Act.
A spokesperson for Vatika Group explained, ‘Due to the development of NH 352 W passing through our project and lack of information from GDMA regarding the road alignments, we could not finalise our service estimates, which are required by HRERA to process the registration. We have complied with HRERA’s imposition of the penalty and will always abide by whatever is deemed fit by the regulators with utmost respect and humility.’
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