HRERA Issues Show Cause Notice to Trehan Hospitality for Unregistered Residential Sales
Sale of residential floors: Show cause notice issued by HRERA to realty firm
Hindustan Times
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The Haryana Real Estate Regulatory Authority (HRERA) has issued a show cause notice to Trehan Hospitality and Realty Pvt Ltd for selling 324 residential floors in Gurugram without mandatory registration under the Real Estate (Regulation and Development) Act, 2016. The firm faces a potential penalty of 5% of the estimated project cost of ₹521.66 crore (approximately $63 million USD).
- 01HRERA issued a show cause notice for unregistered sales of residential floors.
- 02Trehan Hospitality sold 324 residential floors without prior registration.
- 03The estimated project cost is ₹521.66 crore (approximately $63 million USD).
- 04A penalty of up to 5% of the project cost may be imposed.
- 05The next hearing is scheduled for May 4.
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The Haryana Real Estate Regulatory Authority (HRERA) in Gurugram has issued a show cause notice to Trehan Hospitality and Realty Pvt Ltd for developing and selling 324 residential floors in Sector 71 without the required registration under the Real Estate (Regulation and Development) Act, 2016. The total project cost is tentatively assessed at ₹521.66 crore (approximately $63 million USD), and the Authority may impose a penalty of 5% for this violation. HRERA's Chairman, Arun Kumar, stated that the developer contravened Section 3 of the Act, which mandates prior registration for real estate projects. The firm has been directed to respond to the notice within 10 days, with a hearing set for May 4. Trehan Hospitality's representatives argued that the project does not require registration, but HRERA rejected this claim, emphasizing that the construction and sale of the floors fell within the Act's scope. Complaints from allottees further indicated violations in marketing and construction practices.
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This situation may affect homebuyers who purchased the residential floors, as they could face uncertainty regarding the legality of their properties and potential financial implications if penalties are imposed.
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