The controversy surrounding the Chester Hills housing project in Solan district, Himachal Pradesh, has intensified as Chief Secretary Sanjay Gupta demanded a detailed report from the Real Estate Regulatory Authority (RERA) regarding alleged inaction on violations of Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, which restricts land transfer to non-agriculturists. Gupta's letter, dated April 9, 2023, questioned whether RERA officials had conducted proper due diligence during project registration and if previous chairperson Shrikant Baldi had contributed to any violations through inaction.

In response, RERA chairperson RD Dhiman stated that the project registrations were conducted in accordance with the Real Estate (Regulation and Development) Act, 2016, after verifying necessary statutory documents. However, RERA acknowledged that complaints had surfaced from allottees regarding violations and inadequate services. The authority has since initiated quasi-judicial proceedings against the project promoters, issuing multiple show cause notices regarding penalties.

The ongoing situation highlights the regulatory complexities in balancing real estate development with land protection laws, particularly as the state government and district administration become involved in addressing the issues raised. RERA has already imposed a penalty of ₹10 lakh (approximately $12,000 USD) on the project promoters, further complicating the future of the Chester Hills project and the investments of hundreds of homebuyers.