Rera Orders Ground Checks As Realtors Fail To File Reports

H-Rera investigates 100 projects for missing reports, initiates action against delays. Inspections and warnings issued. Arun Kumar leads efforts, threatening penalties for non-compliance, including management seizure.

GURGAON: The Haryana Real Estate Regulatory Authority (H-Rera) has sought a ground report on around 100 housing projects on which developers have not been submitting the quarterly reports.

The developers have to submit quarterly reports to the authority on the construction status of the projects. The regulator, through its police wing, has started doing fact checks to push developers to comply with the norms.

Also, the authority plans to cleanse the database based on the ground reports.

According to a senior Rera official, the authority has initiated action as most projects are running behind schedule and developers haven’t submitted quarterly progress reports and annual audit reports to the regulator. Acting on the direction, a Rera team inspected around 14 residential and commercial projects in various sectors and took stock of the situation.

In Feb, H-Rera chief Arun Kumar had started the initiative to act against such lax builders. The authority also warned of strict action if developers did not follow the rules and conditions.

“Filing of quarterly progress report and annual audit report by real estate promoters is mandatory under the Rera Act 2016, but even after this, several builders have not submitted the report. Quarterly progress report gives info on the status of a project’s construction so that attention can be paid to the project in time,” said an HRera official.

According to the norms, if a builder doesn’t follow the rules and conditions, there is a provision of imposing penalty against the management, seizing its Rera accounts and confiscating properties among others.

The realty companies who don’t intend to complete the projects do not file quarterly reports and annual reports or delay them, said the official. On Feb 14, Kumar himself had inspected all stalled projects to know the ground situation and assured thousands of innocent allottees about action against the erring developers.


Haryana RERA advises buyer to not invest in projects without RERA registration

The Gurgaon bench of Haryana Real Estate Regulatory Authority (HARERA), has advised the real estate buyers to not book properties in projects that are not registered with RERA. The authority said sale and purchase of properties in unregistered real estate projects is not allowed under the RERA Act of 2016. “If any person is facilitating sale purchase in unregistered projects through advertisement or by any other means that is a violation of the Act,” said the authority. The authority said that promoters should discourage advertising their projects before RERA registration as it is an offence and punishable under the law. Section 3 of the Real Estate (Regulation and Development) Act, 2016 says advertisement of unregistered real estate projects in any capacity lays down stringent punishment for such advertisements.

Similarly, Section 9 of the RERA Act, says a person has to register with the RERA before facilitating sale purchase into registered projects. The authority has noted many unregistered agents are using social media as a tool to advertise unregistered real estate projects in violation of the RERA Act 2016, which is a punishable offence. “People should not invest in any unregistered real estate project as they may be cheated through false promises .The real estate promoters and agents should work, act, and offer sale purchases in accordance with the RERA Act only,” said Arun Kumar, Chairman RERA Gurugram.


Haryana govt appoints Arun Kumar as Chairperson of Gurugram RERA

Arun Kumar, a retired IAS officer and former head of the Directorate General of Civil Aviation (DGCA), has been appointed as the chairperson of the Real Estate Regulatory Authority in Gurugram by the Haryana Government.
The appointment, made under the authority granted by Section 20 of the Real Estate (Regulation and Development) Act, 2016, also includes the appointment of Parneet Singh Sachdev, the Principal Chief Commissioner of Income Tax, as the chairperson of the Real Estate Regulatory Authority in Panchkula, Haryana. The government order states that the appointments will take effect from the dates they assume their respective positions.

According to the order, the tenure for the office of the chairperson for both the Real Estate Regulatory Authority in Gurugram and Panchkula, Haryana, will be five years or until they reach the age of sixty-five, whichever comes earlier.


Failed to deliver house, Gurugram RERA orders promoter to refund full amount with interest

The Real Estate Regulatory Authority, Gurugram directed the promoter of a housing project ILD Grand at sector 37C to refund the amount of Rs 72 lakh with interest to the allottee, who wants to withdraw from the incomplete project.

The project was launched in 2008-09 but it is still incomplete.

According to a statement issued by RERA Gurugram, directions to refund the amount were issued by the RERA court on January 6, however, the statement in the regard by the authority was issued on January 18.

“City-based promoter of a real estate project ILD Grand at Sector 37C will have to refund the full amount to its allottee. The Authority directs the promoter to return the amount received of Rs 72,09,911 with interest at the rate prescribed under the Rule 15 of the Haryana real estate (regulation and development) Rules 2017,” the statement said on January 18 quoting the order.

“Arguments heard, refund is allowed and a complaint now stands disposed of,” the court said in the order.

There was no immediate response available from the developer.

The Authority also said that the promoter is responsible for all obligations, responsibilities, and functions under the provisions of the Act.

The order further said that the promoter apparently has “failed to complete or was unable to give possession” of the unit in accordance with the terms of the agreement for sale.

“Accordingly, the promoter is fully liable to the allottee, as the allottee wishes to withdraw from the project, to return the amount received by him in respect of the unit with interest at such rate as may be prescribed,” said the order.

During the argument, the counsel for the respondent confirmed that the occupation certificate of the project is not yet applied as the construction work is not complete.

The builder has recently been granted financial assistance under the SWAMIH fund to complete the project by December 2023, the statement said.

“But the allottee is not interested in continuing with the project and is exercising the statutory rights under Section 18(1) of the Act for a refund of the deposited amount along with interest in view of the failure of the respondent promoter to complete the unit much after the due date of possession which has elapsed almost five years ago,” the court noted in its order.

The due date of possession as per the agreement for sale was August 2017 – failing what the complainant allottee approached RERA in February 2019 for relief.

Prior to this, the RERA Gurugram had in September 2022 asked the ILD promoter to complete the project or face punitive action.

Finding non-compliance with RERA orders the Authority Chairman KK Khandelwal had warned the developer of sending promoters to jail.


Haryana RERA penalises five builders in Gurugram for delayed delivery

The Gurugram bench of the Haryana real estate regulatory authority (HRERA) has imposed penalties of Rs 25 lakh each on five builders after they failed to deliver their housing units to buyers on time. The regulator, however, allowed the realtors’ RERA registration certificates to remain in force with new timelines for completion of their projects.

As per the official statement, Identity Buildtech Private Limited has been fined for not completing its project Ansal Highland Park at Sector 103 within the declared timeline of June 2022. In this case, the authority has allowed the RERA registration to be in force till May 2024.

Similarly, a penalty of Rs 25 lakh has been imposed on BPTP Limited for not completing its project Park Terra at Sector 37-D, Gurugram. The deadline for this project, which was April 2022 earlier, has been extended till April 24.

Another developer Advance India Projects Limited has been penalised for its failure to complete the construction of Zen Residences -1 group housing project at Sector 70-A, Gurugram, the statement said.

Also, a penalty of Rs 25 lakh has been imposed on KLJ Realtech Private Limited for not completing the construction of its commercial project KLJ Square at Sector 83, Gurugram within the declared timeline of June 2021.

While allowing the RERA registration to remain in force for Spaze Towers Private Limited for its project Ishan Singh Commercial at Sector 78, Gurugraam, till December 2025, the authority has imposed a penalty of Rs 25 lakh on the realtor. The project was to be completed by 2020-end, it added.


H-Rera fines developer ₹2.5 crore for selling plots in unregistered project

The Gurugram bench of the Haryana Real Estate Regulatory Authority (H-Rera) on Wednesday said it has imposed a penalty of ₹2.5 crore on Brahma City Private Limited, a real estate promoter, for violating provisions of the real estate (regulation and development) Act of 2016.

H-Rera observed that the developer sold the plots without registration of project in violation of Section 3 of the Act 2016, for which penal proceedings were begun by the authority. It also observed that the promoter made the conveyance deeds of the plots in the unregistered areas of the project on different dates.

While examining the documents during a hearing on November 21, the authority observed that the promoter sold as many as 219 plots without getting the project registered with H-Rera, a serious offence of the Act, 2016.

“For violating the provisions of Rera, the authority has decided to impose a penalty of ₹2.50 crore on the promoter for not applying for registration of its ongoing project within time allowed and allowing sale of plots in violation of the provisions,” said the H-Rera order of December 9.

A statement released by the authority on Wednesday said the order includes a warning to the promoter not to violate the provisions of the Act, directing the promoter to deposit the penalty within one month of the issuing of notice.

“In case the promoter fails to deposit the penalty as imposed by the authority, it will be recovered as arrears of land revenue and further proceedings will be initiated against the promoter under Section 63 of the Rera Act, 2016,” said the order.


Haryana RERA asks developers to seek upgradation in RERA Act

Haryana RERA Chairman KK Khandelwal called upon real estate developers and builders to come together to seek modifications and upgradation in the real estate act so that it’s loopholes, if any, get rectified and both industry leaders and homebuyers stand to gain.

Khandelwal was addressing the day-long NAREDCO Haryana Real Estate Summit 2022 & Buyer-Seller Interface held on November 29 at Gurugram.

The Summit was organized by National Real Estate Development Council (NAREDCO), an apex real estate body that works under the Ministry of Housing & Urban Affairs.

While addressing the queries of developers, Khandelwal said that the current RERA act have a few loopholes that have existed for the last five years.

“The RERA Act ensures transparency and establishes faith of the homebuyers in the industry. We are for completion of projects and believe that loopholes, if there are any, should be addressed,” said Khandelwal.

He asked industry leaders to exert their influence under the banner of NAREDCO (National Real Estate Development Council) to the right quarters of the government so that necessary changes are effected in RERA and both buyers and sellers have no problems with it.

“I have been raising the issue of lacunae in the RERA Act for the last couple of years to inspire the industry for necessary corrections during various interfaces with little success, because industry leaders did not follow up the issue with policy makers. That is why changes in the act have not yet happened,” said Khandelwal.

He stressed that the NAREDCO should form an expert and core groups and study the Act in an objective manner and find out what is correct and incorrect in the legislation.

They should then submit recommendations to the government so that corrective measures are initiated.

Among others who were present in the summit included Ranjit Singh, Power Minister, Government of Haryana, Rajan Bandelkar, President NAREDCO and Niranjan Hiranandani Vice Chairman NAREDCO.

Haryana’s Power Minister Ranjit Singh said that the government will try its best to solve the problems of power sector for industry and other developers so that the economic development of the state does not suffer.

“A cabinet meeting would be held in the first week of December, in which permission will be taken to address the issue of power problem in Haryana. A majority of power-related problems would be sorted out to the best of the availability of the power department of the state,” said the minister.

The minister reassured the real estate developers and builders to organise an interface with the government officials of the power sector and apprise them of their problems for quick redressal.

In a statement released after the summit, Parveen Jain, Chairman, NAREDCO said that the goal is to maximise the effectiveness of existing policies and the RERA Act.

“The brainstorming sessions held at the summit surely provide the sector with a road map for the anticipated growth as all policymakers, industry executives, and experts have joined this platform to identify solutions to existing issues and compliances in light of the evolving regulatory landscape,” Jain said.


Haryana real estate regulator asks Vatika to refund homebuyers’ money

The Gurugram bench of the Haryana real estate regulatory authority (HRERA) has ordered Vatika Limited to refund money with interest to all 28 allottees of its housing project which the developer has abandoned.

The HRERA court had issued the order on October 28 while hearing the petition related to Vatika Turning Point, a residential project in Sector 88B.

The court said that the promoter Vatika will also have to pay the loan amount to respective banks in case an allottee has borrowed from bank.

“Since the project has been abandoned by the promoter, the allottees are entitled for the refund of the amount paid by them to the promoter against the allotment of their units with interest at the prescribed rate of 10.25 per cent per annum from the date of each payment till the date of actual realisation within the timelines as prescribed under the rule 16 of the Rules 2017,” said the RERA court.

The court said, “However, while depositing sale consideration of the allotted units, some of the allottees raised loans from the different financial institutions and the same was paid to the promoter.

“While refunding the amount deposited by the allottees who raised loans against the allotted units, the promoter would be liable to pay that amount with interest up to date to those financial institutions and remainder, if any, would be paid back to the allottees.” Vatika Limited had obtained licence from the Department of Town and Country Planning (DTCP) in 2013 to develop group housing project Turning Point.

The court observed, “Though, the due date for completion of the project and offer of possession of the allotted units was mentioned as validity of registration certificate being September 15, 2025, but after expiry of more than four years from the booking there is no physical work progress at the site except for some digging work.” The court also observed that the promoter failed to file quarterly reports giving status of work progress required under section 11 of Act 2016.

So keeping in view all these facts, 28 allottees of the project approached the authority seeking refunds.

The authority directed the enquiry officer to report about the compliances of the obligations by the promoter regarding the project, specifically with regard to 70 per cent of amount collected from allottees minus the proportionate land cost and construction cost whether deposited in a separate RERA account as per requirement of the Act of 2016 and Rule 2017.

The enquiry report mentioned, “There is hardly any progress regarding development such as construction on site.” K K Khandelwal, RERA chairman, said, “Such offences are unacceptable. The promoters cannot take allottees for granted after realising their hard earned money. RERA has to act as per the law and ensure allottees’ money is safe and they get also compensation for mental trouble.” PTI CORR HVA


RERA, Gurugram, has directed the builders to refund homebuyers money in 90 days along with 9.70 % interest following their failure to give possession of apartments and plots in a stipulated time period.

RERA orders 23 builders to refund money to 63 buyers

The Real Estate Regulatory Authority (RERA), Gurugram, has directed the builders to refund homebuyers money in 90 days along with 9.70 % interest following their failure to give possession of apartments and plots in a stipulated time period.

The RERA orders have come in the wake of multiple complaints from the Gurugram-based homebuyers who after losing their hopes to have their units had petitioned RERA seeking a refund of the amount they had paid to builders.

“The authority has ordered to refund deposited amounts to homebuyers after hearing both the parties (builders and allottee) and on finding builders guilty for non-delivery of units as per builder buyer agreements. The builders should not take homebuyers for granted,” KK Khandelwal, RERA chairman, said in a release.

“The builders failed to complete the projects and deliver the promised units to homebuyers within stipulated time even after collecting good initial amounts,” said Khandelwal.

He said in July alone nearly 300 matters were listed before the authority for adjudication. In the 63 cases, the authority adjudicated the matter allowing a refund with interest at the rate of 9.70%. These adjudications pertain to 17 builders and the refund amount is close to ₹50 crore.

The authority has said in case the builders don’t follow the order, the complainant can approach the adjudicating authority for execution of orders.

In another 15 matters, the authority has ordered a refund after a deduction of 10% earnest money. In all 300 matters, the homebuyers largely wanted a refund and that shows the callous attitude of promoters, the authority has observed.

Khandelwal said the authority gets hundreds of complaints on a daily basis in which mostly buyers want a refund or delayed interest.


Haryana RERA orders Forensic Audit of 5 Affordable Housing Projects

The Haryana Real Estate Regulatory Authority (H-Rera) has ordered forensic audits of all five affordable housing projects by developer Mahira Group in sectors 63, 68, 95, 103 and 104.

The move comes after reports on alleged gross irregularities by the developer in procuring licences for these projects.

The department of town and country planning (DTCP) blacklisted the company, its directors and shareholders last month.

According to a DTCP order, the developer fabricated bank guarantees and forged signatures of bank officials on the documents submitted to the department for procuring the licences of its affordable housing projects.

Now, H-Rera has appointed an executive monitoring engineer to conduct the probe and directed Mahira to submit documents.

In an order, KK Khandelwal, the chief of the Gurugram H-Rera bench, said his officials visited the sites of these projects and submitted a report about their progress and the physical status of construction.

The report claimed that the construction at site doesn’t seem commensurate with the payments collected from buyers and the developer didn’t submit quarterly progress reports of the projects as well.

Taking action on the complaints, the authority directed the company to furnish details including total amount collected from allottees so far, work done on site, bank accounts where the payments were received, withdrawal from the accounts and annual audit reports of last two financial years within seven days (June 6).

The replies submitted by the developer, however, were found to be not in order, so H-Rera on May 28 restrained the promoter from withdrawing from the project account and from creating any third-party rights by way of mortgage/loan.

“The authority further ordered forensic audit of the project account and fixed audit fees of Rs 50,000 to be paid by the developer and appointed Rera executive monitoring engineer JS Sindhu for conducting the enquiry. The authority further directed the developer to produce books of accounts and documents related to loans, funds diverted to other accounts, allotment of units, amount collected from the allottees from sale of units and other related documents required by the enquiry officer,” said an official. Despite efforts by TOI, the developer could not be reached and its office did not respond to calls and messages.