The Hibiscus

Mr. Shashank Sharma, Associate Engineer Executive and Sh. Ashish Dubey, Chartered Accountant briefed about the facts of the project. The Authority passed a detailed order in the complaint case no 6030 of 2019, wherein it has been held that project requires registration for the whole area under the Act and the rules and regulations made thereunder as the CC for the said project had not been obtained so far. A Suo -motu proceedings were initiated against the promoter and a notice dated 12.04.2023 wherein the promoter was directed to apply for registration of the project and also to show cause as to why action u/s 59 of the Act, 2016 may not be initiated against the promoter for violation of the provisions of the Section 3 of the Act ibid. Consequently, hearings were held before the Authority from time to time as detailed in the proceedings above. Sh.  Ashok Jaunapuria (AR), Manoj Shukla (AR) & Sh. Sunil Shekhawat (AR) are present on behalf of the promoter and state that the OC in respect of 13.185 acres was obtained in 2014 much before the commencement of Act, 2016 and OC in respect of only 0.2856 acres comprising of three villas, convenient shopping and swimming pool was obtained in 2019. So, accordingly application for 0.2856 acres only was applied in the Authority for which OC has been obtained in 2019 which is after the enactment of RERA. Further, the order of the Authority is also under challenge before the Hon’ble HREAT in appeal no 261 of 2024. The AR further submits that now CC for the whole project has also been granted by DTCP vide memo no LC-452/JE(SK)/2025/22742 dated 17.06.2025 and the direction for applying registration of whole area may be exempted. A legal opinion was sought from AG, Haryana vide memo no PA/Secy/2024/254 dated 17.12.2024 along with a reminder vide memo no PA/Secy/HARERA/GGM/2025/35 dated 25.03.2025 against which reply is still awaited. The Authority observes that the application is pending for more than 1 year now and promoter has failed to apply for registration of the whole licensed area i.e., 13.48 acres despite of multiple opportunities granted. In view of the fact that the promoter has obtained the completion certificate for the entire project, the Authority considers it appropriate to finalize the proceedings. Since, the promoter has failed to abide by the directions of the Authority and apply for registration of entire ongoing project, it is held that the promoter is in violation of Section 3(1) of the Act of 2016 and is liable for penalty under the provisions of Section 59(1) of the Act ibid which provides for a penalty which may extend up to 10% of the cost of real estate project. However, under the peculiar circumstances of the case where the promoter has obtained the CC of the project, the Authority is of the view that a token penalty of Rs. 25 lakhs may be imposed upon the promoter under the said provision. The promoter is directed to deposit the said penalty amount in the Authority within a period of 60 days failing which further legal consequences would follow. Ordered accordingly. The present proceedings are closed, and application submitted by the promoter u/s 4 of the Act, 2016 is returned. The processing fee deposited by the promoter is forfeited.