Haryana RERA Imposes Rs 50 Lakh Fine on Birla Estates in Gurugram
In a decisive move to uphold transparency and regulatory compliance in the real estate sector, the Haryana Real Estate Regulatory Authority (HARERA) has imposed a hefty fine of Rs 50 lakh on M/s Birla Estates Private Limited. The fine stems from violations under Section 3 of the Real Estate (Regulation and Development) Act, 2016, which strictly prohibits promoters from advertising or selling real estate projects without securing the necessary approvals and registrations.
Birla Estates was found to be promoting its upcoming group housing project, "Birla Akira," located in Sectors 31 and 32-A of Gurugram, before receiving the mandatory registration certificate from HARERA. The authority noted that while the registration application for the project was under review, the developer had already commenced marketing and advertising activities. Such actions are a direct breach of the RERA Act, which aims to protect homebuyers from misleading claims and unauthorized projects.
HARERA has made it clear that Birla Estates must complete all necessary documentation and pay the imposed fine before it can receive the project's registration certificate. The regulatory authority had previously warned the developer, even issuing a show-cause notice regarding the violation. Additionally, HARERA has explicitly directed the company to cease any further sale or advertisement of unregistered projects, warning of stricter penalties if such infractions continue.
Birla Estates is not the only developer facing penalties for non-compliance. HARERA has also taken action against multiple developers, including:
Godrej Developers & Properties LLP
Signature Global Homes Private Limited
Shine Buildcon Pvt Ltd
AMB Infraventures Pvt Ltd Each of these developers has been fined Rs 25 lakh for failing to adhere to the timelines specified under Section 4(2)(l)(C) of the Act. Moreover, HARERA has ordered the forfeiture of security deposits amounting to Rs 2.25 crore from six promoters due to non-compliance with RERA registration conditions.
This enforcement action by HARERA underscores its commitment to ensuring that all real estate projects comply with legal and regulatory requirements. By penalizing erring developers, the authority is safeguarding homebuyers from potential fraud and ensuring that investments in real estate remain secure and transparent. Buyers are encouraged to verify a project's RERA registration status before making any investment decisions to avoid falling into legal or financial pitfalls.
The Rs 50 lakh fine imposed on Birla Estates serves as a stern reminder to real estate developers that regulatory compliance is non-negotiable. HARERA's proactive stance will likely set a precedent for other regulatory bodies across India, reinforcing the importance of transparency and adherence to the law in the real estate industry. Homebuyers and investors must remain vigilant and informed to make secure and legally sound property investments.
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