The Gurugram bench of the Haryana Real Estate Regulatory Authority (HRERA) has imposed a ₹5 crore penalty on city-based developer Vatika Limited. The reason for the fine? Delaying the registration of their residential project, “Vatika India Next II,” located in sectors 88A and 88B.
There’s a law called the Real Estate (Regulation and Development) Act, 2016 (RERA). This law protects homebuyers by ensuring transparency in the real estate sector. One key requirement of RERA is that builders must register their ongoing projects with the RERA authority before they can advertise, sell, or even accept bookings for flats or plots.
Vatika allegedly failed to register their “Vatika India Next II” project on time, which violated Section 3(1) of the RERA Act. HRERA takes a strict view of such delays, as they can leave homebuyers vulnerable.
HRERA officials pointed out that Vatika had obtained the necessary license for the project back in 2013 from the Haryana Town and Country Planning Department. This means they were well aware of the RERA registration requirement.
While Vatika eventually registered the project after some delay, HRERA still pursued penalty proceedings for the initial violation. They concluded that Vatika’s actions amounted to a punishable offense under Section 59 of the RERA Act, leading to the ₹5 crore fine.
Vatika has acknowledged the fine and stated their compliance with HRERA’s decision. A spokesperson for the Vatika Group explained that the delay occurred due to the development of a highway (NH 352 W) passing through their project. They claim they couldn’t finalize the service estimates required for RERA registration because they lacked crucial information about road alignments from the Gurugram Metropolitan Development Authority (GDMA).
Vatika emphasized their respect for regulatory bodies and said they would always abide by their decisions.
What does this mean for homebuyers?
This incident highlights the importance of RERA for homebuyers. By imposing a hefty fine, HRERA sends a message that builders cannot disregard registration requirements. This protects homebuyers from unscrupulous practices and ensures greater transparency in the real estate market.
If you’re considering buying a property in Haryana, always ensure the project is registered with RERA. You can check the RERA website for project details and registration status. This will give you peace of mind knowing you’re protected by the law.