Himachal Pradesh RERA Imposes Penalty on Chester Hill Real Estate Development Projects in Solan

Shimla, April 20: The penalties were imposed for "proven" violation of relevant sections of HP RERA.

Key Violations Found

• Irregular formation of resident welfare association

• Improper maintenance of accounts of money received from allottees

• Inter-mixing of funds

• Non-maintenance of separate project-specific account

• Absence of proper project-wise accounting

• Non-availability of audited financial statements

For Chester Hill-2 (Specific)

• Post-cancellation of Joint Development Agreement, all receipts and payments were routed through a non-RERA bank account

• Significant portions of funds remained unverified due to missing records

Other Complaints Referred for Inquiry

• Unauthorized commercial and tourism activities (violation of Section 118 of HP Land Reforms and Tenancy Act)

• Deviations from sanctioned plans

• Deficiencies in providing essential services

• Handing over possession without Occupancy Certificate

• Alleged benami transactions and land ownership irregularities

Directions Issued

Authority	Action Required
Solan Municipal Commissioner	Submit revised sanctioned plans, site inspection report, details of unauthorised construction
Revenue Department	Report on violation of Section 118, permitted land use, action against unauthorised commercial use
Deputy Commissioner Solan	Report on pending inquiries, alleged benami transactions, land ownership irregularities

RERA Order

• Penalty deposit deadline: Within 30 days (into designated Authority fund)

• Additional requirement: Submit CA-certified disclosures regarding fund utilisation, project status, and allottee-wise collections

• Next hearing: June 5, 2026