Summary of this article
HP RERA penalises Chester Hill projects for multiple regulatory violations
Financial irregularities, fund mismanagement and missing records flagged in audit
Complaints include illegal activities, plan deviations and service deficiencies
Himachal Pradesh Real Estate Regulatory Authority (RERA) has imposed an interim penalty of Rs 70 lakh (Rs 35 lakh each for Chester Hill-2 and Chester Hill- 4) real estate development projects in Solan for various violations.
The penalties were imposed under two separate orders for "proven" violation of relevant sections of HP RERA. The copies of the orders were made available on Sunday.
The complaints pertained to irregular formation of resident welfare association, improper maintenance of accounts of money received from allottees and expenditure incurred on the projects.
RERA forwarded multiple complaints of individual buyers and Association of Allottees regarding "irregular formation of Resident's Welfare Association, unauthorized commercial and tourism activities in violation of section 118 of HP LAND Reforms and Tenancy Act, deviations from sanctioned plans, deficiencies in providing essential services and handing over the possession without an Occupancy certificate" the complaints to Sub Divisional Magistrate (SDM) for further enquiry.
The RERA had directed the Solan Municipal Commissioner to submit revised sanctioned plans, site inspection report, and details of unauthoriesd construction.
It asked the revenue department to furnish report regarding, violation of Section 118 of Land and Tenancy Act, permitted land use and action against unauthoriesd commercial use.
It also instructed the Deputy Commissioner Solan to submit report of pending inquiries, alleged benami transactions, and land ownership irregularities.
Relying on audit findings, "serious financial irregularities such as inter-mixing of funds, non-maintenance of a separate project-specific account, absence of proper project-wise accounting, and non-availability of audited financial statements" were established on record.
Highlighting the gravity of non-compliance, HP RERA observed that the promoter failed to maintain transparency in fund utilisation.
In Chester Hills-2, the Authority found that post-cancellation of the Joint Development Agreement (JDA), "all receipts and payments were routed through a non-RERA bank account," with significant portions of funds remaining unverified due to missing records.
The HP RERA has ordered the promoters to deposit the penalty within 30 days into the designated Authority fund and submit detailed, chartered accountant-certified disclosures regarding fund utilisation, project status, and allottee-wise collections.
The matter will come up for hearing on June 5, 2026.
