The Haryana Real Estate Regulatory Authority (Haryana RERA) has mandated that all builders submit their annual reports for under-construction projects within 30 days. The directive comes in response to a rising number of promoters failing to comply with this requirement, despite repeated reminders. The move is aimed at enhancing oversight, ensuring that project funds are used responsibly, and safeguarding the interests of homebuyers.
Haryana RERA’s recent review of the sector revealed significant non-compliance by promoters, raising red flags about financial accountability in the construction process. In response, RERA has issued show-cause notices to defaulters, instructing them to submit their reports within the stipulated 30-day period or face heavy penalties. This regulatory intervention underscores the growing concerns about transparency and adherence to the rules under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). As per the RERA Act, promoters are required to submit annual reports within six months of the end of each financial year. These reports must include audited project accounts from a certified chartered accountant, verifying that funds raised for the project are utilised as per the approved plans and in proportion to the project’s completion status. However, many promoters have not adhered to this crucial compliance requirement, leading to the strict action now being enforced.
Failure to file annual reports within 30 days of receiving the notice will result in an initial fine of ₹5 lakh. Additionally, an escalating penalty of ₹10,000 per day will be charged for continued non-compliance beyond 60 days. The penalties reflect Haryana RERA’s serious approach to enforce the provisions of the RERA Act and hold promoters accountable. The real estate regulator also warned that any promoter providing false information or contravening the act could face severe financial repercussions. Penalties could reach up to 5% of the project’s estimated cost, reinforcing the importance of maintaining financial integrity in construction practices. This is a key part of the regulator’s effort to protect homebuyers, ensuring that funds raised for housing projects are used efficiently and as intended. RERA’s firm stance on non-compliance reflects its commitment to safeguarding the interests of the public and ensuring that the real estate sector adheres to higher standards of governance. With penalties in place, the regulator hopes to instil greater discipline among promoters, ensuring that projects are completed as promised, and homebuyers’ investments are protected from financial mismanagement.
