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Gurugram Realtor Faces Rs 50 Lakh Penalty for RERA Violations
Gurugram-based Coral Realtors Pvt Ltd has been fined Rs 50 lakh by the real estate regulatory authority RERA for failing to register its ongoing project, Metro World Mall, with the authority. The realtor advertised and created third-party rights in the project before its registration, which is a violation of Section 3 of the RERA Act, 2016.
In a significant move, the Real Estate Regulatory Authority (RERA) has imposed a substantial fine of Rs 50 lakh on Coral Realtors Pvt Ltd, a prominent real estate developer based in Gurugram. The penalty was levied due to the company's failure to register its ongoing project, Metro World Mall, located in Sector 56, Gurugram, with the regulatory authority.
Violation of RERA Act
According to an official statement released by RERA, Coral Realtors violated Section 3 of the Real Estate (Regulation and Development) Act, 2016, by advertising and creating third-party rights in the project prior to its registration. This section of the Act mandates the registration of real estate projects before any promotional activities or sales can take place.
Mandatory Registration
Section 3 of the RERA Act explicitly states that no promoter shall engage in advertising, marketing, booking, selling, or offering for sale any real estate project or part thereof without first registering the project with the respective real estate regulatory authority. This provision aims to protect the interests of homebuyers and ensure transparency in real estate transactions.
Suo Motu Action by RERA
Notably, Coral Realtors only applied for project registration with RERA, Gurugram, after the authority initiated a separate Suo Motu proceeding to investigate the matter. This proactive approach by RERA demonstrates its commitment to enforcing compliance with the RERA Act and safeguarding the rights of property buyers.
Penalty and Registration
In light of the violation, RERA has imposed a penalty of Rs 50 lakh on Coral Realtors. The registration certificate for the Metro World Mall project will be issued only upon receipt of the penalty payment. This action serves as a deterrent against non-compliance and emphasizes the importance of adhering to the provisions of the RERA Act.
The imposition of a significant fine on Coral Realtors by RERA sends a strong message to real estate developers about the importance of complying with the RERA Act. It underscores the regulatory authority's commitment to protecting homebuyers' interests and ensuring transparency and accountability in the real estate sector.
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