SHIMLA: The Himachal Pradesh Real Estate Regulatory Authority (RERA) has imposed an interim penalty of ₹70 lakh (₹35 lakh for both Chester Hill-2 and Chester Hill-4) on real estate development projects in Solan due to several regulatory violations.
The penalties were issued through two separate orders for confirmed breaches of relevant HP RERA sections. The official documents were released on Sunday.
The complaints revolved around the irregular formation of a resident welfare association, inadequate account maintenance of funds received from allottees, and improper expenditures on projects.
RERA has escalated multiple complaints from individual buyers and the Association of Allottees concerning the “irregular formation of a Resident’s Welfare Association, unauthorized commercial and tourism activities violating Section 118 of the HP Land Reforms and Tenancy Act, deviations from approved plans, deficiencies in essential services provision, and possession handovers without an occupancy certificate” to the Sub Divisional Magistrate (SDM) for further investigation.
RERA instructed the Solan Municipal Commissioner to provide revised sanctioned plans, a site inspection report, and details of unauthorized constructions.
It also requested the revenue department to prepare a report regarding violations of Section 118 of the Land and Tenancy Act, permissible land use, and actions against unauthorized commercial activity.
Additionally, the Deputy Commissioner of Solan was instructed to furnish reports on pending inquiries, alleged benami transactions, and land ownership discrepancies.
According to audit findings, significant financial irregularities were found, such as mixing of funds, lack of separate project-wise accounts, insufficient project-specific accounting, and unavailability of audited financial statements.
RERA emphasized the serious nature of non-compliance, noting that the promoter did not maintain transparency regarding fund utilization.
In Chester Hills-2, the Authority determined that after the Joint Development Agreement (JDA) was canceled, “all financial transactions were conducted through a non-RERA bank account,” with many funds remaining unaccounted due to missing documentation.
The HP RERA has directed the promoters to pay the penalty within 30 days into the designated Authority fund and to submit comprehensive, chartered accountant-certified disclosures related to fund use, project status, and allottees’ collections.
The case is scheduled for a hearing on June 5, 2026.
