Haryana RERA Imposes 5 Crore Penalty on Vatika Limited for Registration Delay

The Real Estate Regulatory Authority (RERA) of Gurugram has levied  5 crore penalty on Vatika Limited. This penalty is a result of the developer's failure to apply for RERA registration of an ongoing project within the stipulated time frame following the Act's notification in Haryana.

Violation of Real Estate Act

According to a statement by Haryana RERA, the penalty was imposed for violating Section 3 (1) of the Real Estate (Regulation and Development) Act, 2016. The regulation mandates that real estate developers must register their projects with RERA within three months of the Act's notification. Vatika Limited, however, applied for registration five years after the 2017 notification, only after RERA initiated suo motu action.

Delayed Application

Vatika Limited obtained a license for its residential project, Vatika India Next, from Haryana's Town and Country Planning (TCP) Department in 2013. The company was required to apply for RERA registration by 2017 but delayed the process until 2022. This delay prompted RERA to impose the substantial penalty.

Arun Kumar, Chairman of RERA Gurugram, emphasized the necessity of timely RERA registration to avoid penalties. He stated, "RERA registration is mandatory for all ongoing real estate projects where competition certificates were not issued before the Act coming into force in 2016."

Mandatory Registration

Section 3 (1) of the Act clearly prohibits promoters from advertising, marketing, or selling any part of a real estate project without registering it with RERA. Vatika Limited's delay in registration constituted a breach of this provision, which is punishable under Section 59 of the Act.

Vatika Group's Response

A spokesperson for Vatika Group attributed the delay to complications arising from the development of NH352 W, which passes through the project. The spokesperson explained that uncertainties regarding road alignments from the GDMA hindered their ability to finalize service estimates required for RERA registration. Despite the penalty, Vatika Group expressed its commitment to complying with regulatory requirements.

Previous Penalties

This is not the first time Vatika Limited has faced penalties from Haryana RERA. In April, the authority fined the firm over ₹6 lakh for violating the builder-buyer agreement and directed the promoter to execute the agreement within a month.

This is not the first time Vatika Limited has faced penalties from Haryana RERA. In April, the authority fined the firm over ₹6 lakh for violating the builder-buyer agreement and directed the promoter to execute the agreement within a month.

The recent penalty underscores the critical importance of adhering to regulatory timelines for real estate developers in Haryana. Non-compliance not only results in financial penalties but also damages the reputation of developers, emphasizing the need for stringent adherence to regulatory requirements to maintain trust and credibility in the market.

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