The Haryana Real Estate Regulatory Authority (HRERA) has imposed a INR 5 crore penalty on Vatika Ltd for failing to register its Vatika India Next project within the mandated time frame under the Real Estate (Regulation and Development) Act 2016. Despite obtaining a licence in 2013, the developer did not register the project within three months of the Act's notification in 2017. HRERA's chairman, Arun Kumar, emphasised the importance of timely registration for ongoing projects, clarifying that registration is compulsory for projects without completion certificates before 2016. Vatika Group has acknowledged the penalty and committed to compliance with regulatory decisions, citing challenges with project details due to road development issues.
The Haryana Real Estate Regulatory Authority has asked Vatika Ltd, a real estate developer, to pay INR 5 crore as a penalty for not registering its project within the stipulated time frame. An official on Tuesday said that this penalty is a result of violating Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.
According to the Section 3 (1) of the Act 2016, "No promoter shall advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with Haryana Real Estate Regulatory Authority established under the Act."
The RERA authority noted that the real estate developer acquired a licence for its Vatika India Next project in 2013 from the Town and Country Planning Department of Haryana. However, failed to register the project within three months from the notification of the Act in the state in 2017. The state government took suo motu action in 2022, leading the developer to register its project.
Arun Kumar, chairman of HRERA Gurugram, emphasised that the promoter should have applied for RERA registration in a timely manner to avoid penalties, especially for ongoing projects. He clarified that HRERA registration is mandatory for all ongoing real estate projects where completion certificates were not issued before the Act came into force in 2016.
Kumar added that once Vatika Ltd submits all the necessary approvals for the project registration, the authority will approve the registration of the project.
Additionally, a spokesperson from Vatika Group stated that they have complied with HRERA's imposition of the penalty and will always respect and adhere to decisions made by regulators.
He highlighted that due to the development of NH352W passing through the project and lack of information from the Gurgaon Development and Management Authority regarding the road alignments, the developer could not decide its service estimates which is mandatorily required by HRERA to process the registration.
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