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Haryana Real Estate Regulatory Authority (HRERA) has taken strict action against six developers by seizing security deposits amounting to INR 2.25 crore due to non-compliance with registration conditions. Additionally, two promoters have been penalised INR 25 lakh each for failing to meet project timelines under Section 4(2)(1)(C) of the Real Estate (Regulation and Development) Act, 2016. Despite these penalties, their RERA registration certificates remain valid but with revised project deadlines. The authority has reiterated its commitment to enforcing accountability and ensuring homebuyers receive their properties on time. Experts suggest such measures will deter developers from project delays and encourage adherence to regulations.
In a decisive move against defaulting developers, the Haryana Real Estate Regulatory Authority (HRERA) has confiscated security deposits worth INR 2.25 crore from six promoters for failing to comply with registration norms. Advertisement
Intensifying its crackdown, the authority has also imposed penalties of INR 25 lakh each on two promoters for missing project deadlines, as stipulated under Section 4(2)(1)(C) of the Real Estate (Regulation and Development) Act, 2016. The regulatory body has warned that stringent actions will persist against developers who do not fulfil their commitments.
According to Section 4(2)(1)(C) of the RERA Act, developers must submit a registration application, explicitly stating the project completion timeline. Any deviation without formal approval is deemed a violation, attracting penalties.
Despite these penalties, the RERA registration certificates of the affected promoters remain valid, although with revised project completion timelines.
An HRERA official stated earlier this week that timely completion of real estate projects is crucial for maintaining consumer trust in the sector. The official emphasised that developers must honour their commitments or face severe penalties.
For homebuyers, HRERA's actions reinforce confidence that regulatory bodies are actively holding developers accountable. Experts believe such financial penalties will discourage developers from delaying projects and promote compliance with regulatory norms. Homebuyers have frequently voiced concerns over stalled projects, which impose both financial burdens and emotional distress.
HRERA has underscored that these measures aim to instill accountability and protect homebuyers from indefinite delays. The authority's Gurgaon office has been actively monitoring real estate projects to ensure timely handovers and prevent project stagnation.
For developers, the penalties serve as a stark reminder of the necessity for meticulous planning and adherence to project schedules. The real estate sector has faced challenges in meeting deadlines due to financial constraints, regulatory hurdles, and market fluctuations.
HRERA's stringent actions signal a firm stance against non-compliance in the real estate sector. As regulatory scrutiny intensifies, developers must adopt better planning and execution strategies to avoid penalties and maintain consumer confidence in the real estate market.
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