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

Gururgram, July 9, 2024: The Real Estate Regulatory Authority (RERA), Gurugram, has imposed a penalty of Rs 5 crore on real estate promoter Vatika Limited for a violation of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.

The Authority observed that Vatika obtained licence for its residential real estate project Vatika India Next 2 in Sector 88A & 88B in 2013 from the Town and Country Planning (TCP) Department of Haryana and the promoter had to apply for RERA registration within three months of the notification of the Act in the state in 2017.

The Authority said that Vatika applied for the RERA registration five years later in 2022 after RERA took a suo motu action in the matter.

Arun Kumar, Chairman RERA Gurugram, said, “It was an on-going project, and the promoter should have applied for the RERA registration well on time to avoid penalties. RERA registration is mandatory for all on-going real estate projects where competition certificates were not issued before the Act coming 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 the 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.”

Thereafter, once the promoter submitted all the mandatory approvals for registration of the project, the Authority approved the registration of the project. Further the Authority also concluded the penal proceeding for violation of Section 3 which is punishable offence u/s 59 of the Act 2016 and imposed a penalty of Rs 5 crore.