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HARERA Gurugram Initiates Suo Motu Action for Alleged RERA Violations

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The Haryana Real Estate Regulatory Authority has initiated suo motu proceedings against Nitara Projects for allegedly violating provisions of the Real Estate (Regulation and Development) Act, 2016 by marketing and selling residential floors without mandatory project registration.

The action highlights HARERA Gurugram’s increasing focus on curbing unregistered real estate developments and protecting homebuyers from unauthorized housing projects.

HARERA Takes Cognizance Under Section 35 of RERA Act

According to the authority, proceedings were initiated under Section 35 of the RERA Act after it was observed that the promoter was allegedly developing, advertising, marketing and selling residential floors without obtaining compulsory project registration under Section 3(1) of the Act.

Under RERA provisions, developers are required to register eligible projects with the regulatory authority before advertising, marketing or selling any units.

The authority noted that the company’s promotional material and advertisements allegedly failed to disclose mandatory information including:

• RERA registration number
• HARERA website details
• Department of Town and Country Planning (DTCP) licence number

Such disclosures are compulsory under the RERA framework to ensure transparency and help homebuyers verify project legality.

Show Cause Notice Issued to Developer

HARERA Gurugram stated that a show-cause notice was issued to the promoter on April 16, 2026.

However, during the hearing conducted on May 11, 2026, the authority noted that no reply had been filed by the developer.

As a result, HARERA has granted a final opportunity to the promoter to explain why penal action should not be initiated under the relevant provisions of the RERA Act.

The next hearing in the matter has been scheduled for June 8, 2026.

The authority further warned that failure to appear or submit a reply may result in ex-parte proceedings and regulatory action against the developer.

HARERA Raises Concern Over Unregistered Residential Floor Projects

The authority also expressed concern over a growing trend where developers purchase plots in licensed colonies and construct independent residential floors without obtaining RERA registration.

According to HARERA, such practices allow promoters to avoid regulatory scrutiny and bypass transparency requirements under the law.

The authority emphasized that project registration under RERA is essential to safeguard the interests of homebuyers and ensure legal accountability of developers.

Experts believe such unregistered developments often create problems related to:

• Delayed possession
• Lack of approvals
• Construction quality disputes
• Absence of legal protection for buyers
• Difficulty in seeking compensation or refunds

Homebuyers Advised to Verify RERA Registration Before Investing

The HARERA Gurugram has advised homebuyers and investors to carefully verify the registration status of any real estate project before booking or investing.

The authority warned that buyers investing in unregistered projects may face significant legal and financial risks and could lose access to remedies available under the RERA Act.

Homebuyers have been encouraged to verify:

• Project registration status
• Developer details
• Approved plans
• Licence information
• Project timelines

through the official HARERA portal before making any payment.

Importance of RERA Registration Under the Law

The Real Estate (Regulation and Development) Act, 2016 was introduced to improve transparency, accountability and consumer protection in the real estate sector.

Under Section 3(1) of the Act:

• Developers cannot advertise or sell projects without registration
• Mandatory disclosures must be made publicly
• Financial discipline and project monitoring become enforceable
• Homebuyers gain legal protection and grievance redressal rights

Violation of these provisions may attract penalties, fines and other enforcement action by the regulatory authority.

Increasing Regulatory Crackdown on Violations

Real estate regulators across various states have intensified action against developers violating RERA provisions, especially in cases involving:

• Unregistered projects
• Misleading advertisements
• Delayed possession
• Non-disclosure of approvals
• Diversion of project funds

HARERA Gurugram’s latest action against Nitara Projects reflects the regulator’s strict stance on ensuring compliance with registration norms and protecting consumer interests.

Conclusion

The suo motu proceedings initiated by HARERA Gurugram against Nitara Projects underline the growing scrutiny on unregistered real estate developments in Haryana.

The case also serves as an important reminder for homebuyers to verify project registration and legal approvals before investing in any property.

As regulators continue strengthening enforcement under the RERA framework, compliance with registration and disclosure norms is becoming increasingly critical for developers operating in the real estate sector.

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