In a stern message to real estate developers operating in Haryana, the Haryana Real Estate Regulatory Authority (HRERA) has imposed a significant penalty of ₹1.5 crore on M/s 1000 Trees Housing Private Limited. The developer’s failure to register its ongoing project, Sanctuary 105, located in Sector 105, Gurugram, has resulted in this hefty fine.
HRERA’s decision underscores its unwavering commitment to enforcing the Real Estate (Regulation and Development) Act, 2016, which aims to ensure transparency, accountability, and consumer protection in the real estate sector. The penalty serves as a stark reminder to developers of the consequences of non-compliance with regulatory requirements. Despite holding a licence from the Department of Town and Country Planning, Haryana, since 2012, M/s 1000 Trees Housing had neglected to register the Sanctuary 105 project with HRERA. This oversight is a clear violation of the Act, which mandates project registration before creating third-party rights or advertising.
Arun Kumar, Chairman of HRERA Gurugram, emphasized the gravity of the developer’s violations, which included the sale of units to third parties without the requisite HRERA registration. The Authority has imposed penalties under both Section 59 and Section 3(2) of the Act, addressing the specific non-registration issues and the developer’s failure to obtain essential project certifications. M/s 1000 Trees Housing has disputed the allegations, claiming that the HRERA press release is misleading and that they have not been officially informed of the penalty. The developer has also initiated legal proceedings to address the matter.
Regardless of the developer’s response, HRERA’s action sends a clear message to the real estate industry. The penalty serves as a deterrent to developers who may be tempted to disregard regulatory requirements. By enforcing the law and holding developers accountable, HRERA is working to protect the interests of homebuyers and maintain a fair and transparent real estate market. This incident highlights the importance of developers adhering to the provisions of RERA. By registering their projects and complying with other regulatory requirements, developers can avoid significant financial penalties and reputational damage. HRERA’s actions demonstrate its commitment to upholding the principles of consumer protection and ensuring a level playing field for all stakeholders in the real estate sector.
