RERA in Haryana: Overview

The Haryana Real Estate Regulatory Authority (HRERA) enforces the Real Estate (Regulation and Development) Act, 2016 in the state. With offices in both Gurgaon and Panchkula, HRERA has been actively regulating the real estate sector, with over 2,000 registered projects and numerous enforcement actions against non-compliant builders. For any builder or developer operating in Haryana, RERA compliance is not optional — it is a legal requirement with significant penalties for violations.

Who Needs to Register?

RERA registration is mandatory for all residential real estate projects where the land area exceeds 500 square meters OR the number of proposed apartments exceeds 8. This covers the vast majority of residential projects in Gurgaon and other Haryana cities. Registration must be completed before any marketing, advertising, or selling of units can begin.

Key Compliance Requirements

1. Escrow Account

Builders must deposit 70% of all amounts received from buyers into a dedicated escrow account for each registered project. Withdrawals are permitted only for construction costs and land payments, supported by the project architect's certification. This provision ensures that funds collected for one project are not diverted to another.

2. Quarterly Progress Updates

Builders must file quarterly progress reports with HRERA including construction status, fund utilization, and timeline updates. These reports are publicly accessible on the HRERA portal, providing transparency to buyers and investors.

3. Accurate Marketing

All marketing materials must accurately represent approved plans. Builders cannot advertise amenities or specifications that are not part of the approved building plan. Any modifications to the approved plan require authority approval and buyer consent.

4. Defect Liability

RERA mandates a 5-year defect liability period from the date of possession. During this period, builders must rectify any structural defects or quality issues at their own cost within 30 days of being notified. This provision is in addition to any contractual warranty offered by the builder.

Penalties for Non-Compliance

• Selling without RERA registration: penalty up to 10% of project cost
• False information in registration: penalty up to 5% of project cost
• Non-compliance with HRERA orders: imprisonment up to 3 years or penalty up to 10% of project cost
• Non-registration of agents: penalty up to Rs 10 lakhs
• Promoter non-compliance: project cost-based penalties and potential project revocation

How Good Value Solutions Ensures Compliance

Our in-house legal and compliance team manages all RERA obligations across our residential portfolio. We register projects before marketing, maintain dedicated escrow accounts with regular audits, file quarterly updates on schedule, and ensure all marketing materials reflect approved plans. Our zero-complaint track record with HRERA demonstrates our commitment to regulatory compliance and buyer protection.