RERA imposes Rs 5 crore penalty on Vatika Limited for non-registration violation

RERA imposes Rs 5 crore penalty on Vatika Limited for non-registration violation

Gururgram July 10: The Real Estate Regulatory Authority (RERA), Gurugram, has imposed a significant penalty of Rs 5 crore on the city-based real estate promoter M/s Vatika Limited for a serious violation of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.

The Authority observed that M/s Vatika Limited obtained a license for its residential real estate project, Vatika India Next, in 2013 from the Town and Country Planning (TCP) Department of Haryana.

According to the Act, the promoter was required to apply for RERA registration within three months of the Act’s notification in the state in 2017. However, M/s Vatika Limited applied for RERA registration five years later, in 2022, only after RERA initiated suo motu action in the matter.

Arun Kumar, Chairman of the Authority said, “It was an ongoing project, and the promoter should have applied for the RERA registration well on time to avoid penalties. RERA registration is mandatory for all ongoing real estate projects where competition certificates were not issued before the Act came into force in 2016.”

Section 3 (1) of the Act 2016 says, “No promoter shall advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment, or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under the Act.”

Once the promoter submitted all the mandatory approvals for the registration of the project, the Authority approved the registration. Furthermore, the Authority concluded the penal proceedings for the violation of Section 3, which is a punishable offense under Section 59 of the Act 2016, and imposed a penalty of Rs 5 crore.

EOM.