by THO
In response to repeated non-compliance of mandatory submission of annual reports of the real estate projects under construction, the Haryana Real Estate Regulatory Authority (HeRera), Gurugram, has warned real estate promoters to submit annual reports within 30 days to avoid a penalty of ₹5 lakh.
During a recent review meeting the Authority noted that “it is unfortunate that many of the real estate promoters have not yet submitted annual reports of their individual projects, and whom the Authority is now sending show cause notices informing them to submit the same within 30 days to avoid penalties,” it said in a statement.
The Authority order said that failure to file the annual report for under-construction projects is a serious violation of the RERA Act 2016, and “the Authority views it seriously and therefore such promoters have been show caused as to why a penalty of ₹5 lakh should not be imposed on a promoter who fails to file the same in 30 days from the date of issuing of the show cause notice.”
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A penalty of ₹10, 000 per day in addition to the ₹5 lakh will be imposed on a real estate promoter who fails to file the annual report within 60 days from the date of the show cause notice being sent to him, the statement said.
What does the RERA Act say?
As per Section 4(2)(l)(d) of the RERA Act, 2016, real estate promoters are required to have their accounts audited by a practicing chartered accountant within six months of the end of each financial year. The audit must verify that funds collected for a specific project have been used solely for that project and withdrawals comply with the project’s completion percentage.
Under Section 60 of the Act, promoters who provide false information or violate Section 4 may face penalties of up to 5 per cent of the estimated cost of the project, as determined by the authority, it said.
If any promoter provides false information or contravenes the provisions of Section 4, he shall be liable to a penalty which may extend up to five percent of the estimated cost of the real estate project, as determined by the Authority under the Section 60 of the Act 2016, it added.
