RERA imposes Rs 50 lakh penalty on Gurugram's Coral Realtors
Gurugram, March 8
The Real Estate Regulatory Authority (RERA), Gurugram, has imposed a penalty of Rs 50 lakh on a city-based real estate promoter M/s Coral Realtors Private Limited.
The fine was imposed on the promoter for not getting its ongoing project registered with the authority. The developer has also been held guilty for a continuing offence of advertising, marketing and creating third party rights in the project prior to registration.
3rd party rights created before registration
- Section 3 of the RERA Act, 2016, mandates registration of a real estate project before creating third party rights.
- However, in this case, M/s Coral Realtors Pvt Ltd allegedly applied for registration of the project with RERA, Gurugram, only after the authority initiated a proceeding taking suo motu cognisance of the matter.
- The developer was also held guilty for the continuing offence of advertising and marketing in the project prior to registration.
The authority said it was a clear case of violation of Section 3 of the RERA Act, 2016, which makes registration of a real estate project mandatory before creating third party rights.
“Therefore, the authority has decided to impose a penalty of Rs 50 lakh. The registration certificate will be issued only after the receipt of the penalty,” the order said.
M/s Coral Realtors Private Limited is building a commercial project, Metro World Mall at Sector 56, Gurugram.
“No promoter shall advertise, market, book, sell/offer for sale, or invite persons to purchase any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act,” states Section 3 of the RERA Act.
In this case, promoter M/s Coral Realtors Private Limited allegedly applied for registration of the project with RERA, Gurugram, only after the authority initiated a proceeding taking suo motu cognisance of the matter.
Arun Kumar, chairman, RERA Gurugram, said, “No one is above law. The Act treats all its stakeholders equally. In this case, the promoter has violated certain section of the Act. Promoters must register projects before advertising and creating third party rights.”
