GURUGRAM: The Haryana Real Estate Regulatory Authority (HRera) has issued a strict directive to real estate promoters, mandating submission of annual reports for their under-construction projects within 30 days. The move comes after the regulator observed widespread non-compliance by promoters, raising concerns about transparency and accountability in the sector.
During a recent review meeting, Rera noted that several promoters failed to file these mandatory reports, despite repeated reminders. As a result, it’s now issuing show-cause notices to defaulters. These notices demand compliance within the stipulated timeframe, warning that failure to do so will lead to significant financial penalties.
In its order, Rera emphasised that non-filing of annual reports is a serious violation of the Real Estate (Regulation and Development) Act, 2016 (Rera Act). Promoters, who fail to file the reports within 30 days of receiving the notice, will face an initial penalty of ₹5 lakh. Moreover, an additional penalty of ₹10,000 per day will be imposed for continued non-compliance beyond 60 days.
The submission of annual reports is a critical requirement under Section 4(2)(l)(d) of the Rera Act. Promoters are obligated to get their project accounts audited by a certified chartered accountant within six months of the end of each financial year.
The audit must verify that the funds collected for a project are utilised exclusively for its intended purpose and that withdrawals are made in proportion to the project’s completion status.
Rera highlighted that any promoter providing false information or contravening Section 4 provisions could face penalties extending up to 5% of the project’s estimated cost under Section 60 of the Act. This provision underscores the importance of maintaining financial integrity in project execution.
The regulator has also reiterated that these measures are aimed at ensuring greater transparency and accountability in the real estate sector. Promoters are urged to comply with these regulations promptly to avoid severe financial and legal repercussions.
Rera’s warning reflects its commitment to safeguarding the interests of homebuyers and ensuring that project funds are utilised responsibly.
