The Haryana Real Estate Regulatory Authority (HRERA) in Gurugram has imposed a substantial penalty of ₹1.5 crore on M/s 1000 Trees Housing Private Limited for failing to register its ongoing real estate project, Sanctuary 105, located in Sector 105, Gurugram. This decision underscores HRERA’s stringent enforcement of the Real Estate (Regulation and Development) Act, 2016, aimed at ensuring transparency and safeguarding consumer rights in the real estate sector.
The penalty was imposed following an in-depth review of the developer’s application for project registration, which revealed significant compliance issues. Despite holding a licence from the Department of Town and Country Planning, Haryana, since 2012, M/s 1000 Trees Housing had not registered the Sanctuary 105 project with HRERA. This lapse is considered a breach of the Act, which mandates project registration before creating third-party rights or advertising. According to Arun Kumar, Chairman of HRERA Gurugram, the penalty reflects the severity of the violations, which included the sale of units to third parties without the mandatory HRERA registration. The Authority has also imposed a penalty under Section 59 of the Act, specifically addressing non-registration issues.
HRERA’s action follows the issuance of a show-cause notice to the developer, pointing out the absence of essential project certifications such as completion, occupation, or part-occupation certificates. These certifications are crucial for project exemption under Section 3(2) of the Act and Haryana Real Estate Rules. In response to the penalty, a spokesperson for M/s 1000 Trees Housing denied the allegations, labelling the HRERA press release as misleading. The spokesperson asserted that the company has not been officially informed of the penalty and claimed that legal proceedings have been initiated to address the purported misinformation.
This penalty highlights HRERA’s commitment to enforcing regulatory compliance and upholding the interests of homebuyers. It serves as a significant reminder to developers about the importance of adhering to statutory requirements to avoid substantial financial penalties and reputational damage.
