HRERA Enforces Strict Compliance on Annual Report Submissions by Real Estate Developers
The Haryana Real Estate Regulatory Authority (HRERA) has introduced a mandatory annual reporting requirement for real estate developers, including penalties for non-compliance, to ensure transparency and accountability in the sector.
HreraReal Estate DevelopersAnnual ReportsRera ActPenaltiesReal Estate NewsDec 04, 2024
During a recent review, HRERA noted that numerous developers had failed to submit the necessary reports despite repeated reminders. As a result, the authority has started issuing show-cause notices to non-compliant developers. These notices demand prompt adherence to the deadline and warn that failure to comply will result in substantial financial penalties.
In its order, HRERA emphasized that failing to submit annual reports is a serious violation of the Real Estate (Regulation and Development) Act, 2016 (RERA Act). Developers who do not file the reports within 30 days of receiving the notice will face an initial penalty of INR 5 lakh. Additionally, a daily fine of INR 10,000 will be levied for each day of non-compliance beyond 60 days.
The submission of annual reports is a crucial requirement under Section 4(2)(l)(d) of the RERA Act. Developers must have their project accounts audited by a certified chartered accountant within six months of the end of each financial year. The audit must verify that the funds raised for the project are used exclusively for its intended purpose and that withdrawals align with the project's completion status.
HRERA also pointed out that developers providing false information or breaching Section 4's provisions could face fines of up to 5% of the project's estimated cost, as stipulated in Section 60 of the Act. This provision underscores the importance of maintaining financial integrity in project execution.
The regulator reiterated that these measures aim to promote transparency and accountability within the real estate sector. Developers are urged to comply with these regulations swiftly to avoid significant financial and legal repercussions. HRERA's warning reflects its ongoing commitment to protecting the interests of homebuyers and ensuring the responsible use of project funds.
In conclusion, HRERA's enforcement of strict reporting guidelines signals a strong stance on ensuring transparency and accountability in the real estate sector. By holding developers accountable for submitting accurate financial reports, the regulator aims to protect homebuyers and foster trust in the industry. These measures, coupled with penalties for non-compliance, serve as a warning to promoters to adhere to regulations. Through this initiative, HRERA is working towards upholding financial discipline, ensuring the responsible use of funds, and preventing potential misuse, ultimately benefiting both consumers and the long-term health of the sector.
Frequently Asked Questions
What is the main requirement introduced by HRERA for real estate developers?
HRERA has mandated that real estate developers must submit annual reports for their ongoing projects within 30 days.
What are the consequences of non-compliance with HRERA's annual report submission requirement?
Non-compliant developers face an initial penalty of INR 5 lakh and a daily fine of INR 10,000 for each day of non-compliance beyond 60 days.
What is the purpose of the annual report submission?
The purpose is to ensure transparency and accountability in the real estate sector by verifying that funds are used exclusively for their intended purpose and that withdrawals align with the project's completion status.
Who is responsible for auditing the project accounts?
The project accounts must be audited by a certified chartered accountant within six months of the end of each financial year.
How does HRERA's initiative benefit homebuyers and the real estate sector?
HRERA's initiative aims to protect homebuyers by ensuring the responsible use of project funds and fostering trust in the real estate industry, ultimately benefiting consumers and the long-term health of the sector.
Related News Articles
Tata Curvv to Challenge Creta Dominance with CNG Variant Launch
Tata Motors hints at launching a CNG variant of the Tata Curvv, set to rival the Hyundai Creta in the mid-size SUV segment.
Avadhoot Gupte Secures Luxurious Apartment in Bandra for Rs 7.7 Crore
The property is located in the upscale neighborhood of Bandra (Khar West), Mumbai, highlighting the area's growing appeal as a premier destination for high-end real estate.
Mumbai: Prominent Pharma Tycoon Acquires Prime Sea-View Apartment in Lodha Sea Life
The recent acquisition of a high-end sea-view apartment by the promoter of Alkem Laboratories, Cyriac George Singh, has stirred the Mumbai real estate market. Singh's purchase, along with other significant transactions, highlights a growing trend of luxur
Nifty on Track for a Phenomenal 2025? 20-25% Returns Possible, Says Sharad Avasthi
The Indian stock market, bolstered by solid economic growth and transformative trends, is set to deliver impressive returns in 2025. Sharad Avasthi, a market expert, predicts a strong performance driven by robust government spending and sectoral growth.
TN CM Advocates Innovative Urban Plans for Sustainable Housing
The Chief Minister of Tamil Nadu has called for the development of innovative urban plans to address the growing demand for sustainable housing. He highlighted ongoing efforts to create comprehensive master plans that balance urbanization with environment
Bracing for the Economic Storm: Kiyosaki’s 2025 Financial Crisis Prediction
In an era of market volatility and economic uncertainty, financial guru Robert Kiyosaki is sounding the alarm bells with his bold 2025 economic forecast. He recommends strategic investments in gold, silver, Bitcoin, and real estate to safeguard against po