H-Rera Imposes Rs 5 Crore Penalty on Vatika Ltd for Registration Lapses

Gurgaon, 10 July 2024 – The Haryana Real Estate Regulatory Authority (H-Rera) has levied a hefty penalty of Rs 5 crore on Vatika Ltd for failing to register its residential project, Vatika India Next 2, in sectors 88A and 88B, with the authority. This violation contravenes Section 3 (1) of the Real Estate (Regulation and Development) Act, 2016.

Section 3 (1) of the Real Estate Act, 2016, explicitly prohibits promoters from advertising, marketing, booking, selling, or offering for sale any plot, apartment, or building without first registering the project with Rera. Vatika Ltd’s delay in registering its project, despite receiving its project license in 2013, led to H-Rera’s decisive action.

According to officials, Vatika Ltd was required to apply for Rera registration within three months of the Act’s notification in the state in 2017. However, the company delayed registration by five years, only applying in 2022 after H-Rera initiated suo motu action.

H-Rera (Gurgaon) Chairman Arun Kumar stressed the importance of adhering to regulatory norms in a timely manner. “This clause ensures that all real estate activities are transparent and that the interests of buyers are safeguarded. Vatika Ltd’s delayed registration prompted Rera to take stringent action,” he said.

“It was an ongoing project, and the promoter should have applied for Rera registration well on time to avoid penalties. Rera registration is mandatory for all ongoing real estate projects where completion certificates were not issued before the Act came into force in 2016,” Kumar explained.

Although Vatika Ltd eventually submitted all necessary approvals for the registration, leading to the authority’s approval of the project, the penalty proceedings for the violation of Section 3 (1) continued. This resulted in the imposition of a Rs 5 crore fine on the company.

The penalty underscores the authority’s commitment to enforcing compliance and ensuring transparency in the real estate sector, thereby protecting the interests of buyers and maintaining the integrity of real estate transactions.