The Himachal Pradesh Real Estate Regulatory Authority has imposed a penalty of ₹51 lakh on Gee City Builders Pvt Ltd, Baddi, for issuing 51 allotment letters before registering its housing project under the provisions of the Real Estate (Regulation and Development) Act, 2016.

The order was passed by RERA chairperson R D Dhiman and member Vidur Mehta in a 2019 suo motu petition concerning the project “GEE CITY BADDI”. The authority has directed the promoter to deposit the penalty within 15 days of receipt of the order, failing which proceedings under Section 63 of the Act will be initiated.

According to the order, the promoter had applied for project registration on May 13, 2024, declaring it as an ongoing development comprising 602 residential units across eight blocks, along with commercial components, located at Mohal Judi Khurd and Suraj Majra Labana in Tehsil Nalagarh, Solan.

During scrutiny, the authority found that 227 residential flats and four commercial shops had been sold or allotted prior to registration. Of these, 51 allotment letters were issued between May 1, 2017 and May 30, 2017 — after the RERA Act came into force on May 1, 2017.

“We decided the matter recently,” RERA chairman R D Dhiman said.