RERA Slaps Rs 5 Crore Fine on Vatika Ltd for Violating Real Estate Regulations
The Real Estate Regulatory Authority (RERA) has imposed a hefty penalty of Rs 5 crore on Vatika Limited for failing to register its residential project with the authority within the stipulated timeframe.
ReraVatika LimitedReal EstateRegulatory AuthorityGurugramReal EstateJul 09, 2024
Vatika Limited obtained a license for its residential real estate project Vatika India Next from the Town and Country Planning (TCP) Department of Haryana in 2013. However, the promoter was required to apply for RERA registration within three months of the notification of the Act in the state in 2017. The authority observed that Vatika Limited applied for the RERA registration five years later, in 2022, after RERA took suo motu action in the matter.
RERA Chairman, Arun Kumar, stated that the promoter should have applied for the RERA registration well in time to avoid penalties. He emphasized that RERA registration is mandatory for all ongoing real estate projects where completion certificates were not issued before the Act came into force in 2016.
Section 3 (1) of the Act 2016 stipulates that no promoter shall advertise, market, book, sell, or offer for sale or invite persons to purchase in 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.
After submitting all mandatory approvals for registration of the project, the authority approved the registration of the project. The authority also concluded the penal proceedings for violation of Section 3, which is a punishable offense under Section 59 of the Act 2016, and imposed a penalty of Rs 5 crore.
Information
Vatika Limited is a well-known real estate developer with a presence in Gurugram, Haryana. The company has developed several residential and commercial projects in the region.
The Real Estate Regulatory Authority (RERA) is a regulatory body established under the Real Estate (Regulation and Development) Act 2016. Its primary objective is to regulate and promote the real estate sector in India, ensuring transparency, accountability, and fair play among stakeholders.
Frequently Asked Questions
What is the penalty imposed on Vatika Limited by RERA?
RERA has imposed a penalty of Rs 5 crore on Vatika Limited for violating Section 3 (1) of the Real Estate (Regulation and Development) Act 2016.
Why did Vatika Limited face penalties from RERA?
Vatika Limited failed to apply for RERA registration within the required three months after the Act's notification in Haryana in 2017, resulting in a breach of Section 3 (1) of the Act.
What is the purpose of RERA registration for real estate projects?
RERA registration is mandatory for all ongoing real estate projects where completion certificates were not issued before the Act came into force in 2016, to ensure transparency, accountability, and fair play among stakeholders.
When did Vatika Limited obtain a license for its Vatika India Next project?
Vatika Limited obtained a license for its Vatika India Next project from the Town and Country Planning (TCP) Department of Haryana in 2013.
What is the provision of Section 3 (1) of the Real Estate (Regulation and Development) Act 2016?
Section 3 (1) of the Act stipulates that no promoter shall advertise, market, book, sell, or offer for sale or invite persons to purchase in 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.
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