HRERA Imposes INR 1.5 Crore Penalty on Gurugram Developer

The Haryana Real Estate Regulatory Authority (HRERA) of Gurugram has taken a decisive step to enforce compliance within the real estate sector, imposing a substantial penalty of INR 1.5 crore on M/s 1000 Trees Housing Private Limited. The penalty arises from the developer’s failure to register its ongoing project, despite holding a valid license for over a decade. The license in question was originally issued by the Department of Town and Country Planning, Haryana, in 2012, allowing the developer to proceed with construction activities under strict regulatory oversight.

The HRERA’s investigation revealed that the project, located in Sector 105, Gurugram, and marketed under the name “Sanctuary 105,” had proceeded with the sale of units to third-party buyers without securing the mandatory HRERA registration. This discovery was made during the review of the promoter’s belated application for project registration, which was submitted with the intention of regularizing the ongoing development and ensuring compliance with regulatory norms.

The HRERA’s actions are rooted in the stipulations of the Real Estate (Regulation and Development) Act, 2016, which mandates that all real estate projects must be registered with the Authority before any sales transactions or marketing activities commence. Failure to adhere to this regulation is deemed a serious offense, attracting penalties under Section 59 of the Act.

In this case, HRERA Gurugram has granted conditional approval for the project’s registration, contingent upon the payment of the prescribed late fees in addition to the INR 1.5 crore penalty. However, the developer has vehemently denied the allegations, asserting that the HRERA’s statements are baseless. A spokesperson for M/s 1000 Trees Housing Private Limited dismissed the press release as “entirely wrong and untrue” and suggested that the company is a victim of a malicious campaign. The spokesperson further clarified that the company is not aware of any such HRERA release and has already initiated legal proceedings to address what it perceives as misinformation.

The company maintains that it remains fully compliant with any regulatory orders concerning the project in question. This development highlights the ongoing challenges within the real estate sector, particularly in ensuring that all stakeholders adhere to the stringent guidelines set forth by regulatory authorities. As HRERA continues to enforce the Real Estate Act, developers are increasingly under pressure to ensure that their projects meet all legal requirements, thereby protecting the interests of homebuyers and maintaining the integrity of the market.