Gurugram RERA Imposes a Fine of Rs. 50 lakh for Violating Norms

Coral Realtors Private Limited, a real estate promoter based in Gurugram, has been fined Rs 50 lakh by the Gurugram Real Estate Regulatory Authority. The penalty was imposed because the company failed to register its ongoing project with the authority, as stated by the Authority.

According to the Authority, Coral Realtors continued to advertise, market, and create third-party rights in the project without completing the registration process. This action is a clear violation of Section 3 of the RERA Act, 2016, which mandates the registration of a real estate project before any third-party rights can be established.

The RERA said, "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.” 

As per the provisions stated in Section 3 of the RERA Act 2016, it is strictly prohibited for Coral Realtors Private Limited to promote, market, book, sell, or offer for sale any plot, apartment, or building within the Metro World Mall commercial project located in Sector 56, Gurugram, without first registering the said real estate project with the appropriate real estate regulatory authority.

The chairman of RERA Gurugram, stated, "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.”

The promoter Coral Realtors Private Limited sought registration of the project with RERA, Gurugram, subsequent to the Authority commencing a separate suo motu proceeding to address the issue, as stated by the Authority.