Gurugram: HRERA Urges Promoters to Submit Annual Reports Within 30 Days to Avert Penalties
Click to start listening
Gurugram, Nov 28 (NationPress) In light of the persistent non-compliance with the mandatory submission of annual reports for ongoing real estate projects, the Haryana Real Estate Regulatory Authority (Herera) has cautioned local promoters to file their reports within 30 days to steer clear of stringent penalties.
The Authority expressed concern over the fact that many real estate promoters have yet to submit their respective annual reports, prompting the issuance of show cause notices that require compliance within the specified 30 days to avoid penalties.
The directive from the Authority highlights that failing to file the annual reports for projects under construction constitutes a serious breach of the Real Estate (Regulation and Development) Act 2016, which the Authority takes very seriously. Consequently, promoters have been notified to explain why a penalty of Rs 5 lakh should not be imposed on those who neglect to submit their reports within the 30-day window following the issuance of the show cause notice.
Moreover, the Authority also mentioned that an additional penalty of Rs 10,000 for each subsequent day, along with the initial Rs 5 lakh, will be charged to any promoter who fails to submit the annual report within 60 days from the issuance of the show cause notices.
According to Section 4(2)(l)(d) of the Real Estate (Regulation and Development) Act of 2016, real estate promoters are required to submit annual reports for projects under construction. Failure to do so carries strict penalties as stipulated in the Act.
This section specifies that promoters must have their accounts audited by a practicing chartered accountant within six months following the end of each financial year, and must provide a certified statement of accounts. The audit must verify that funds collected for a specific project have been appropriately utilized for that project, in accordance with the percentage of project completion.
If any promoter submits false information or violates the provisions of Section 4, they may face a penalty of up to 5% of the estimated cost of the real estate project, as determined by the Authority under Section 60 of the Act 2016.
