Haryana Rera directs realtor to resume project by January 5 or face Rs 50-cr penalty
In a landmark decision, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, directed Orris Infrastructure Pvt Ltd, which has developed Greenopolis project along with another developer, to resume work by January 5 or face a penalty of Rs 50 crore.
Additionally, the authority will levy a penalty of Rs1 crore per day if the work does not begin, said KK Khandelwal, chairman, HRERA, Gurugram. A show cause notice was also issued to the developer.
Khandelwal said that work is likely to start on the project as both the developers have entered a settlement under the aegis of HRERA and it is likely to be signed next week.
The Greenopolis project was launched in July 2012 by Orris Infrastructure Pvt Ltd and Three C Shelters Pvt Ltd on 47.218 acres in Sector 89. The original licence of the project was, however, granted to Orris by the department of Town and Country Planning and it was on this basis that the HRERA has asked the company to complete the project.
“We have issued a show cause notice to Orris to start work by January 5 or face a penalty of Rs50 crore. If the developer starts work, then provisional registration will be granted by HRERA and it would be a major relief. Since the registration has not been done, the penalty could be 10% of the project cost,” said Khandelwal.
The additional fine of Rs1 crore per day could be up to 5% of the total project cost, he added.
“The agreement is likely to be signed soon as there is one issue regarding a charge of Rs208 crore that needs clearance. The next date of hearing is January 8, when the entire matter would be reviewed. Also, the managing director of Orris today (on Tuesday) assured the court that work would start by January 5,” he said.
Over 500 buyers in the project were present in the HRERA court on Tuesday, demanding action against the developer. They demanded that direction by the authority should be implemented in letter and spirit.
The developer did not respond to queries from Hindustan Times.