In a decisive move to enforce transparency and accountability in the real estate sector, the Haryana Real Estate Regulatory Authority (HeRERA), Gurugram, has issued a stern directive to promoters of under-construction projects. Promoters must submit their mandatory annual reports within 30 days or face fines of up to ₹5 lakh. This directive comes after a review meeting highlighted widespread non-compliance with Section 4(2)(l)(d) of the RERA Act, 2016, which mandates timely project audits by chartered accountants.
The failure to file these reports is deemed a severe violation of the Act, prompting HeRERA to issue show-cause notices to defaulters. A spokesperson for HeRERA confirmed that additional penalties, including ₹10,000 per day beyond the initial 60-day window, would be levied. The stringent measures underscore the Authority’s commitment to ensuring funds collected from homebuyers are used solely for designated projects, fostering trust in the real estate market. With real estate investments involving significant life savings for many buyers, such compliance is crucial to sustaining confidence and safeguarding interests.
From an urban development angle, timely submission of these reports is vital for maintaining a transparent and organised sector. Real estate plays a pivotal role in urbanisation, and lapses in compliance compromise project timelines and housing availability. This affects not just the industry but also broader civic issues, such as housing shortages and delays in critical infrastructure projects. By tightening regulations, HeRERA aims to align the sector with national goals of sustainable and equitable urban growth.
Sustainability, a growing focus in real estate, also ties into these compliance measures. Proper fund allocation ensures projects adhere to sustainable construction practices, reduce environmental impact, and meet green building standards. By reinforcing accountability, HeRERA’s actions aim to create a real estate landscape that is not only transparent but also aligned with sustainable urban development goals. These steps resonate as a necessary stride towards an ethical and efficient real estate sector.
