Haryana RERA
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Haryana Real Estate Regulatory Authority (RERA) has recently imposed a hefty penalty of ₹5 crore on real estate developer Vatika Limited. The penalty was imposed for not applying for RERA registration of an ongoing project within the mandated three months after the Act was notified in Haryana in 2017.

Violation of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016:

Vatika Limited obtained a license for its residential real estate project, Vatika India Next, in 2013 from the Town and Country Planning (TCP) Department of Haryana. However, the promoter failed to apply for RERA registration within the stipulated time, leading to a violation of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.

Delayed Application and Penalty Imposition:

Vatika Limited applied for the RERA registration five years after the Haryana notification in 2022. This delay came to light after RERA took a suo motu action in the matter. The Authority observed that the project was ongoing, and the promoter should have applied for the RERA registration well on time to avoid penalties.

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RERA Registration Mandatory for Ongoing Projects:

RERA registration is mandatory for all ongoing real estate projects where completion certificates were not issued before the Act came into force in 2016. The Authority approved the registration of the project after the promoter submitted all the mandatory approvals for registration of the project. However, the Authority also concluded the penal proceeding for violation of Section 3 and imposed a penalty of ₹5 crore.

Vatika Limited’s Response:

In response to the penalty, a Vatika Group spokesperson stated that the delay in registration was due to the development of NH352 W passing through their project and lack of information from GDMA regarding the road alignments. They could not finalize their services estimates, which is mandatorily required by HRERA to process the registration. The spokesperson confirmed that they have complied with HRERA’s imposition of the penalty.

Previous Penalties:

This is not the first time Vatika Limited has faced penalties from Haryana RERA. In April, the Authority penalized the real estate firm with more than ₹6 lakh for violating the builder-buyer agreement provisions and directed the promoter to execute the BBA within a month.

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The imposition of a ₹5 crore penalty on Vatika Limited serves as a stern warning to all real estate developers to adhere to the regulations set by RERA. It emphasizes the importance of timely registration of ongoing projects to avoid hefty penalties and ensure transparency in the real estate sector.


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