HRERA acts against Gurugram builder over sale of unregistered project

The authority alleged Nitara Projects marketed and sold residential floors without mandatory RERA approval and disclosures.

The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, on Wednesday said it has taken suo motu cognisance under Section 35 of the Real Estate (Regulation and Development) Act, 2016, against city-based developer M/s Nitara Projects Limited for allegedly developing and selling real estate projects without mandatory registration.

HRERA acts against Gurugram builder over sale of unregistered project

In a statement issued on Wednesday, HRERA Gurugram said proceedings were initiated after the authority observed that the promoter was developing, advertising, marketing and selling residential floors without obtaining registration under the Act.

According to the Authority, the developer used promotional material and advertisements without disclosing mandatory details, including the RERA registration number, the Authority’s website and the DTCP licence number.

HRERA said it had taken “serious note” of a practice wherein developers purchase plots in licensed colonies and individually construct and sell residential floors without registering the projects, thereby bypassing regulatory oversight. “Such practices are in clear violation of the Act,” the authority said.

Taking serious note of the alleged lapse, the authority said it has granted a final opportunity to the promoter to explain why penal action should not be initiated under relevant provisions of the act. The developer has been directed to appear before the Authority on June 8 and file a reply, failing which ex parte proceedings may be initiated.

HRERA Gurugram also issued a public advisory asking homebuyers and investors to verify the registration status of projects on the official HRERA website before making bookings or investments.

“Exercise due diligence, as investment in unregistered projects is undertaken at the buyer’s own risk, cost, and consequences and may deprive you of the reliefs granted under the RERA Act,” the Authority said.

Responding to the allegations, a representative of Nitara Projects Limited said the company is engaged only in customised construction of individual residential houses and villas on a contractual and turnkey basis according to client requirements. “The company is not involved in township, group housing, plotted colony, low-rise or high-rise development projects for public sale,” the representative said.

“We remain committed to full compliance with all applicable laws, including RERA provisions wherever applicable,” the representative added.