BackLAW
Himachal: RERA slaps ₹70 lakh penalty on Chester Hills projects
HP RERA imposed a total penalty of ₹70 lakh on the promoters of Chester Hills-2 and Chester Hills-4 in Solan for financial irregularities, based on suo motu orders dated March 23, 2026. The move followed audit findings and ongoing scrutiny of fund management, with a fresh probe ordered by the state government earlier in April and subsequent related developments, including a scheduled hearing in June. The case has also drawn political calls for a judicial probe.
Why It Matters
The penalty underscores regulatory oversight in Himachal Pradesh’s real estate sector and aims to protect allottee interests amid ongoing allegations related to land deals and JDA cancellations.
Timeline
5 Events
Next hearing in HP RERA case scheduled
June 5, 2026
The matter will next be heard on June 5, 2026.
Copy of HP RERA orders released
April 19, 2026
A copy of the March 23, 2026 HP RERA orders was released on Sunday, detailing the penalty and findings.
CPI(M) demands judicial probe into Chester Hills case
April 17, 2026
On Friday, April 17, 2026, the Communist Party of India (Marxist) demanded a judicial probe into the Chester Hills case.
Fresh probe ordered into Chester Hills matter by state government
April 2026
The article states that the state government ordered a fresh probe into the Chester Hills matter earlier in April 2026.
HP RERA imposes interim penalty on Chester Hills-2 and Chester Hills-4 for financial irregularities
March 23, 2026
In two suo motu orders dated March 23, 2026, HP RERA levied an interim penalty of ₹35 lakh on each project, totaling ₹70 lakh, for violating Section 4(2)(l)(D) of the RERA Act 2016. The orders cite inter-mixing of funds, non-maintenance of a separate project-specific account, lack of proper project-wise accounting, and absence of audited financial statements. They also note that the JDA cancellations remain under examination and direct the promoters to deposit the penalty within 30 days into the designated Authority fund and submit chartered accountant-certified disclosures on fund utilisation, project status, and allottee-wise collections. The proceedings are ongoing, with potential further penalties under Sections 11, 14, and 17 after receipt of reports.