April 17, 2024: The Haryana Real Estate Regulatory Authority (RERA) court has fined real estate developer Vatika more than Rs 6 lakh for breaching provisions of the builder-buyer agreement rules. Vatika was found to have violated Section 13 of the 2016 Act, and as a result, the Authority imposed a penalty of Rs 1 lakh for each complaint under Section 61. Additionally, the promoter has been instructed to finalise the registered buyer’s agreement within 30 days based on the model agreement outlined in the Real Estate Regulation and Development Rules 2017. Failure to comply will result in penal action under Section 63.
See also: RERA Haryana: Rules, registration and complaints
Section 13 of the Real Estate Act of 2016 prohibits promoters from accepting more than 10% of the apartment or plot cost as an advance payment or application fee without a written sale agreement with the buyer. Five complainants approached the RERA Court in October 2022 seeking justice after unsuccessful attempts to resolve issues with Vatika. They had booked commercial units in the Vatika India Next project in 2018 and paid the full consideration without executing the Builder Buyer Agreement (BBA). Subsequently, Vatika allegedly transferred their units to another project, Vatika One in Gurgaon’s Sector 16, without consent and reduced the unit sizes from 1,000 sqft to 500 sqft.
The court also imposed a penalty of Rs 25,000 to be paid to each complainant within 30 days from the order date under Section 63 for failing to comply with the Authority’s directions in the February 23 order. Vatika Limited has been directed to pay interest for every month of delay from the possession due date to the present at the prescribed rate.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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