Himachal RERA Imposes Rs 70 Lakh Penalty on Chester Hills Solan Projects

The Himachal Pradesh Real Estate Regulatory Authority (HP RERA) has imposed a cumulative interim penalty of Rs 70 lakh on the promoters of the Chester Hills-2 and Chester Hills-4 residential projects in Solan. The orders cite serious statutory violations, including financial irregularities and unauthorized deviations in construction under the Real Estate (Regulation and Development) Act, 2016.

In two suo motu orders, the Authority levied a penalty of Rs 35 lakh on each project promoted by Hansraj Thakur. The promoters were held prima facie guilty of violating Section 4(2)(l)(D) of the RERA Act, which mandates that 70 per cent of funds received from allottees be kept in a separate bank account and utilized strictly for construction and land costs.

The Tribunal, headed by RERA chairperson R D Dhiman and member Vidur Mehta, delivered the orders on April 17 following a March 23 hearing. The orders stated that although some complainants withdrew their complaints, the suo motu proceedings pertaining to the alleged violations, including allegations of benami transactions, especially in relation to Chester Hill-2 and Chester Hill-4, are still ongoing.

A major part of the ongoing probe involves Section 118 of the HP Tenancy and Land Reforms Act, 1972, which restricts land sales to non-agriculturists. RD Dhiman confirmed that “the proceedings are still continuing against the mega housing project in Solan. The report pertaining to the alleged violations of Section 118… is still pending on the part of Deputy Commissioner Solan.”

The Authority noted several grave concerns, including unauthorized commercial and tourism-related activities in alleged violation of land-use norms, handing over possession of units without obtaining an occupancy certificate (OC), and deviations from sanctioned building plans and failure to upload revised approvals.

Taking a stern view of technical lapses, HP RERA has directed that action be initiated against the architect and engineer concerned for allowing significant construction deviations. Additionally, the project’s Chartered Accountant will face scrutiny for discrepancies flagged in the Quarterly Progress Reports (QPRs).

The promoter has been directed to deposit the Rs 70 lakh penalty into the HP RERA fund within 30 days. He must also submit CA-certified records of total funds collected and their specific utilization. With key reports from the Revenue Department still awaited, the Authority warned that further penalties are likely. The matter is listed for a physical hearing on June 5.