HP RERA penalty of Rs 70 lakh on Chester Hill projects in Solan over compliance breaches

Himachal Pradesh Real Estate Regulatory Authority RERA has issued interim penalties worth Rs 70 lakh on two Solan projects. The Authority set Rs 35 lakh each for Chester Hill-2 and Chester Hill- 4. The action followed findings of several violations under HP RERA rules. Copies of the two separate orders were made available on Sunday.

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HP RERA linked the penalties to audit findings and buyer complaints about poor compliance. The record showed serious financial lapses, including inter-mixing of funds and weak accounting controls. The Authority also flagged missing audited financial statements. It said the promoter did not keep transparency on how money got used across the projects.

HP RERA penalty in Solan projects follows audit and accounting lapses

Relying on audit findings, HP RERA established non-maintenance of a separate project-specific account. It also found no proper project-wise accounting on record. The Authority noted inter-mixing of funds received from allottees. It further recorded that audited financial statements were not available for checking project finances and spending.

In Chester Hills-2, HP RERA found added issues after cancellation of the Joint Development Agreement JDA. It recorded that receipts and payments moved through a non-RERA bank account. The Authority said large parts of funds stayed unverified. Missing records prevented full checks of some transactions and supporting documents.

HP RERA penalty linked to buyer complaints and Residents Welfare Association issues

The complaints included irregular formation of resident welfare association and poor account keeping. Buyers also raised issues about money received from allottees and project spending. Several complaints came from individual buyers. The Association of Allottees also approached HP RERA with concerns tied to governance and project operations.

HP RERA also forwarded complaints for further enquiry to the Sub Divisional Magistrate SDM. These complaints cited unauthorized commercial and tourism activities. The alleged activity was said to violate section 118 of HP LAND Reforms and Tenancy Act. The complaints also mentioned deviations from sanctioned plans and missing essential services.

HP RERA penalty case includes questions on plans, land use, and possession

HP RERA asked the Solan Municipal Commissioner for revised sanctioned plans and a site inspection report. It also sought details of unauthoriesd construction linked to the projects. The Authority asked the revenue department for a report on Section 118 issues. It also requested permitted land use and action on unauthoriesd commercial use.

The Authority instructed the Deputy Commissioner Solan to submit a report on pending inquiries. It also sought details of alleged benami transactions and land ownership irregularities. Separately, complaints included handing over possession without an Occupancy certificate. Deficiencies in providing essential services were also cited in the case record.

HP RERA ordered the promoters to deposit the penalties within 30 days. The amount must go into the designated Authority fund. The promoters must also submit chartered accountant-certified disclosures on fund utilisation. The disclosures must cover project status and allottee-wise collections. The matter will come up for hearing on June 5, 2026.

With inputs from PTI