A Haryana Real Estate Regulatory Authority (RERA) court has imposed a fine of over Rs 600,000 on real estate developer Vatika for violating the provisions of the Builder-Buyer Agreement Rules. Mr Vatika was found to have contravened section 13 of the 2016 Act. As a result, the authorities imposed a fine of Rs 100,000 per complaint under Section 61.
Further, the promoters were directed to complete the agreement with the registered buyer within 30 days in accordance with the provisions set out in the Real Estate Regulations. and Development Rules 2017 Sample Contract. Failure to comply will result in criminal proceedings under Article 63. Article 13 of the Real Estate Act 2016 prohibits a developer from receiving more than 10% of the price of an apartment or land as an advance payment or application deposit without a written purchase contract with the buyer.
Five plaintiffs approached the RERA court in October 2022 seeking justice after attempts to resolve the issue with Vatika failed. They had booked commercial units in the Vatika India Next project in 2018 and had paid the full consideration without entering into a builder-buyer agreement (BBA). Vatika then allegedly shifted the unit to another project, Vatika One in Sector 16, Gurgaon, without consent and reduced the size of the unit from 1,000 sq ft to 500 sq ft. The court also imposed a fine of Rs 25,000 on each petitioner within 30 days from the date of the order under Section 63 for failing to comply with the directions of the authorities in the order dated February 23. Vatika Limited was directed to pay interest at the prescribed rate for each month of delay from the date of possession till date.
HRERA has rejected the extension of the Gurgaon Godrej Aviation Phase 4 housing project in Sector 85, Gurgaon city, citing non-compliance. According to media reports, HRERA has sent multiple notices to developers asking them to correct errors and request extensions. HRERA sent a final notice regarding the reasons for issuance in February 2024, but received no response. Based on this, HRERA will deny the extension request and will also freeze the project’s bank account.
Vatika, a real estate developer, was fined ₹6 lakhs by RERA for violating the Builder-Buyer Agreement (BBA) with five buyers. Vatika did not have a written agreement with the buyers
Vatika violated Section 13 of the Real Estate Act (2016) by not having a BBA with the buyers. This section restricts developers from taking more than 10% advance payment without a written agreement.
The buyers had booked commercial units in the Vatika India Next project but Vatika allegedly shifted them to a different project (Vatika One) with a smaller unit size without their consent.
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