Gurugram Real Estate Regulatory Authority imposed a penalty of Rs 50 lakh on a city-based real estate promoter Coral Realtors Private Limited for not getting its ongoing project registered with the authority, the Authority noted.
The Authority said that the realtor continued advertising, marketing and creating third-party rights in the project before registration, which the Authority said, is a clear case of violation of Section 3 of RERA Act, 2016. Section 3 of the RERA Act makes registration of a real estate project mandatory before creating any third-party rights.
“Therefore, the Authority decides to impose a penalty of Rs 50 lakh on the realtor. The registration certificate will be issued only after receipt of the penalty,” the REA order said.
Coral Realtors Private Limited is building a commercial project Metro World Mall at Sector 56 in Gurugram.
According to section 3 of RERA Act 2016, no promoter shall advertise, market, book, sell or offer for sale any plot, apartment or building 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.
"No one is above the law. The Act treats all its stakeholders equally. In this case, the promoter has violated certain sections of the Act. Promoters must register projects before advertisements and creating third-party rights,” Arun Kumar, chairman of RERA Gurugram, said.
In this case, the promoter Coral Realtors Private Limited applied for registration of the project with RERA, Gurugram, only after the Authority initiated a separate suo motu proceeding taking cognizance of the matter, the Authority said in a statement.
There was no immediate response from the developer towards queries sent by Moneycontrol to seek comment on the development.
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