The Haryana Real Estate Regulatory Authority (HRERA) has taken a decisive step to enforce annual reporting compliance among real estate developers, setting a firm 30-day deadline for submissions. This move comes after a regulatory review revealed extensive lapses, prompting HRERA to issue show-cause notices to non-compliant developers. The regulator aims to ensure transparency and accountability, crucial for rebuilding trust in the sector that has faced scrutiny over misuse of funds.
Developers failing to comply with these directives face stiff penalties. According to HRERA, violations of the Real Estate (Regulation and Development) Act, 2016, attract an initial fine of ₹5 lakh. Persistent delays beyond 60 days incur an additional daily fine of ₹10,000. The authority stressed that these measures aim to deter malpractice and safeguard homebuyers’ interests. In the first wave of enforcement, a significant number of developers have already been served notices, reflecting the seriousness of the issue.
The requirement for annual financial reporting under Section 4 of the RERA Act ensures project funds are exclusively used for intended purposes. This financial discipline is critical for fostering sustainable growth in the real estate sector. Developers must audit their accounts through certified chartered accountants and submit detailed reports verifying compliance. False declarations or breaches could result in penalties up to 5% of the project’s cost, further reinforcing HRERA’s commitment to financial integrity.
This enforcement initiative also aligns with broader sustainability goals. Accurate financial reporting promotes efficient resource allocation, discourages fund mismanagement, and supports timely project completion, benefiting urban development. By enforcing these stringent measures, HRERA underscores its role as a watchdog, ensuring developers adhere to ethical practices while prioritising homebuyers’ interests. This approach signals a transformative shift towards a more transparent and accountable real estate sector in Haryana.
