File Annual Reports in 30 days to Avoid Penalties: HARERA Gurugram warns promoters

Gurugram, Nov 28, 2024: Haryana Real Estate Regulatory Authority (HARERA), Gurugram, has now warned the city promoters to file the annual report of the real estate projects under construction, within 30 days to avoid the strict penalties.

In a review meeting held last week, the Authority noted with concern 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.

In its order the Authority said that non-filing of the annual report of the under-construction projects is a serious violation of the RERA Act of 2016, and the Authority views it seriously and therefore such promoters have been show caused as to why not a penalty of Rs 5 lakh be imposed on a promoter who fails to file the same in 30 days from the date of issuing of the show cause notice.

Further, the Authority informed that a penalty of Rs 10, 000 – for every subsequent day in addition to the Rs 5 Lakh will be levied on a real estate promoter, who fails to file the annual report within 60 days from the date of issuing of the show cause notices.

As per the Section 4(2)(l)(d) of the Real Estate (Regulation and Development) Act of 2016, real estate promoters are mandatorily required to submit the annual reports of the projects under construction failing which there are strictest provisions of penalties in the Act.

Section 4(2)(l)(d) states that the promoter shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilized for that project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

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.