Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
The Haryana Real Estate Regulatory Authority (HRERA) has introduced a stringent mandate requiring real estate developers to submit annual reports for their ongoing projects within 30 days. The decision comes in response to widespread non-compliance among developers, raising concerns about transparency. RERA has begun issuing show-cause notices to defaulters, with penalties for non-compliance. Developers must also ensure their project accounts are audited by certified chartered accountants, verifying proper fund utilization. RERA's actions underscore its commitment to transparency and safeguarding homebuyers' interests while maintaining financial integrity in real estate development.
The Haryana Real Estate Regulatory Authority (HRERA) has enforced a strict mandate requiring real estate developers to submit annual reports for their ongoing projects within 30 days. This step follows the regulator's discovery of widespread non-compliance among developers, underscoring concerns over transparency and accountability in the sector. Advertisement
During a recent review, RERA noted that numerous developers had failed to submit the necessary reports despite repeated reminders. As a result, the authority has started issuing show-cause notices to those not in compliance. These notices demand prompt adherence to the deadline and warn that failure to comply will lead to substantial financial penalties.
In its order, RERA emphasized that failing to submit annual reports is a serious violation of the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Developers who do not file the reports within 30 days of receiving the notice will face an initial penalty of INR 5 lakh. Additionally, a daily fine of INR 10,000 will be levied for each day of non-compliance beyond 60 days.
The submission of annual reports is a crucial requirement under Section 4(2)(l)(d) of the RERA Act. Developers must have their project accounts audited by a certified chartered accountant within six months of the end of each financial year. The audit must verify that the funds raised for the project are used exclusively for its intended purpose and that withdrawals align with the project's completion status.
RERA also pointed out that developers providing false information or breaching Section 4's provisions could face fines of up to 5% of the project's estimated cost, as stipulated in Section 60 of the Act. This provision underscores the importance of maintaining financial integrity in project execution.
The regulator reiterated that these measures aim to promote transparency and accountability within the real estate sector. Developers are urged to comply with these regulations swiftly to avoid significant financial and legal repercussions. RERA's warning reflects its ongoing commitment to protecting the interests of homebuyers and ensuring the responsible use of project funds.
In conclusion, HRERA's enforcement of strict reporting guidelines signals a strong stance on ensuring transparency and accountability in the real estate sector. By holding developers accountable for submitting accurate financial reports, the regulator aims to protect homebuyers and foster trust in the industry. These measures, coupled with penalties for non-compliance, serve as a warning to promoters to adhere to regulations. Through this initiative, RERA is working towards upholding financial discipline, ensuring the responsible use of funds, and preventing potential misuse, ultimately benefiting both consumers and the long-term health of the sector.
Advertisement
Facebook
Whatsapp
