Shimla, April 19 -- The multi-crore Chester Hill project, already under scrutiny over alleged violations and 'benami' charges, has suffered another setback with action by the Himachal Pradesh Real Estate Regulatory Authority (HP RERA).
HP RERA has imposed an interim penalty of Rs 70 lakh on the promoters of two housing projects-Chester Hills-2 and Chester Hills-4-for violations of the Real Estate (Regulation and Development) Act, 2016. The authority levied Rs 35 lakh each on the projects under Section 60 of the Act.
The action followed a suo motu case initiated after media reports and an inquiry conducted by the SDM, Solan. The authority found violations of provisions mandating proper maintenance of accounts for funds received from homebuyers and expenditure incurred on the projects.
Officials said further action could follow once detailed field reports are examined. "We have sought a report from the field. If irregularities are found, additional penalties may be imposed," a senior RERA official said.
Complaints against the projects include irregularities in the formation of Residents Welfare Associations, poor maintenance, deviations from approved plans, and handing over possession without obtaining occupancy certificates. HP RERA has also flagged possible violations under multiple provisions of the Act, including obligations of promoters, deviations from sanctioned plans, and issues related to premature possession. If confirmed, these could attract stricter penalties.
The inquiry report pointed to serious financial irregularities, including the absence of project-wise accounting, intermingling of funds from allottees, and lack of audited financial statements.
Published by HT Digital Content Services with permission from Millennium Post.