Premium

Rs 70 lakh interim penalty: Himachal RERA cracks down on Solan’s Chester Hills projects over financial ‘irregularities’

Separate orders cite financial irregularities, violations of land-use norms, and construction deviations; further action is likely after departmental reports.

3 min readShimlaApr 19, 2026 05:53 PM IST

A view of the Chester Hills project in Himachal Pradesh (File photo).

The Himachal Pradesh Real Estate Regulatory Authority (HP RERA) has imposed a cumulative interim penalty of Rs 70 lakh on the promoters of the Chester Hills-2 and Chester Hills-4 residential projects in Solan. The orders cite serious statutory violations, including financial irregularities and unauthorised deviations in construction under the Real Estate (Regulation and Development) Act, 2016.

In two suo motu orders, the Authority levied a penalty of Rs 35 lakh on each project promoted by Hansraj Thakur. The promoters were held prima facie guilty of violating Section 4(2)(l)(D) of the RERA Act, which mandates that 70 per cent of funds received from allottees be kept in a separate bank account and utilised strictly for construction and land costs.

The Tribunal, headed by RERA chairperson R D Dhiman and member Vidur Mehta, delivered the orders on April 17 following a March 23 hearing. The orders stated that although some complainants withdrew their complaints, the suo motu proceedings pertaining to the alleged violations, including allegations of benami transactions, especially in relation to Chester Hill-2 and Chester Hill-4, are still ongoing.

Land use violations

A major part of the ongoing probe involves Section 118 of the HP Tenancy and Land Reforms Act, 1972, which restricts land sales to non-agriculturists. RD Dhiman confirmed that “the proceedings are still continuing against the mega housing project in Solan. The report pertaining to the alleged violations of Section 118… is still pending on the part of Deputy Commissioner Solan.”

The Authority noted several grave concerns, including unauthorised commercial and tourism-related activities in alleged violation of land-use norms, handing over possession of units without obtaining an occupancy certificate (OC), and deviations from sanctioned building plans and failure to upload revised approvals.

Taking a stern view of technical lapses, HP RERA has directed that action be initiated against the architect and engineer concerned for allowing significant construction deviations. Additionally, the project’s Chartered Accountant will face scrutiny for discrepancies flagged in the Quarterly Progress Reports (QPRs).

What’s next?

The promoter has been directed to deposit the Rs 70 lakh penalty into the HP RERA fund within 30 days. He must also submit CA-certified records of total funds collected and their specific utilisation. With key reports from the Revenue Department still awaited, the Authority warned that further penalties are likely. The matter is listed for a physical hearing on June 5.

Saurabh Parashar

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

Stay updated with the latest - Click here to follow us on Instagram

Loading Recommendations...

May 16: Latest News

Live Blog