Himachal Pradesh RERA Imposes Rs 51 Lakh Fine on Real Estate Firm for Pre-Registration Allotments

The Himachal Pradesh Real Estate Regulatory Authority (RERA) has imposed a penalty of Rs 51 lakh on Gee City Builders Pvt Ltd, Baddi, for issuing 51 allotment letters before registering its housing project with the authority. The order was passed by RERA chairperson R D Dhiman and member Vidur Mehta in a 2019 suo motu petition concerning the real estate project “GEE CITY BADDI”.

The authority directed the promoter to deposit the penalty within 15 days of receiving the order. Failing to do so will result in the initiation of proceedings under Section 63 of the Real Estate (Regulation and Development) Act, 2016.

According to the order, the promoter of the housing project applied for registration of the project on May 13, 2024. The project, located at Mohal Judi Khurd and Suraj Majra Labana in Tehsil Nalagarh, Solan, was declared as an ongoing project comprising 602 dwelling units across eight residential blocks, along with commercial components.

During the scrutiny of the project documents and statutory declarations, the authority found that 227 residential flats and four commercial shops had been sold or allotted prior to registration. Of these, 51 allotment letters were issued between May 1, 2017, and May 30, 2017, after the RERA Act came into effect on May 1, 2017. RERA Chairman R D Dhiman told The Indian Express, “We decided the matter recently.”

Sources said that the authority imposed a penalty of Rs 1 lakh per unit for the 51 allotments, totaling Rs 51 lakh. This decision underscores the importance of compliance with the RERA Act, which aims to ensure transparency and accountability in the real estate sector, protecting the interests of homebuyers and promoting fair practices among developers.