The Haryana Real Estate Regulatory Authority (HRERA) has directed real estate promoters to submit annual reports for their under-construction projects within 30 days.
This comes after ongoing non-compliance by promoters, raising serious concerns about transparency and accountability within the real estate sector, as published by Construction World.
In a recent review meeting, HRERA officials noted that numerous promoters had not submitted these mandatory reports, despite repeated reminders. To address this, the authority has started issuing show-cause notices to the defaulters, urging them to comply with the 30-day deadline. Failure to do so will result in substantial financial penalties.
HRERA stressed that non-compliance with the submission of annual reports is a violation of the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Promoters who do not comply within 30 days of receiving the notice will face an initial penalty of Rs 5 lakh. Additionally, an incremental penalty of Rs 10,000 per day will be levied for continued non-compliance beyond 60 days.
Under Section 4(2)(l)(d) of the RERA Act, promoters are required to get their project accounts audited by a certified chartered accountant within six months of the financial year’s end. The audit must confirm that the funds collected for the project are used solely for that purpose and that withdrawals are proportionate to the project’s completion status.
HRERA also warned that providing false information or violating the provisions of Section 4 could lead to penalties of up to 5% of the project’s estimated cost, as per Section 60 of the RERA Act.
The regulator emphasized that these measures aim to enhance transparency and accountability in the real estate sector. Promoters have been urged to comply with the regulations promptly to avoid serious financial and legal repercussions.