Gurugram’s Real Estate Regulatory Authority (RERA) has imposed a hefty penalty of Rs 50 lakh on Coral Realtors Private Limited, a real estate promoter in the city. The penalty is attributed to the promoter’s failure to register its ongoing commercial project, Metro World Mall at Sector 56, with the regulatory authority.
The Authority stated that Coral Realtors continued advertising, marketing, and creating third-party rights in the project before obtaining proper registration, which is a clear violation of Section 3 of the RERA Act, 2016. This section mandates the registration of a real estate project before engaging in activities that involve creating third-party rights.
The penalty decision was outlined in the RERA order, stating, “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.”
Arun Kumar, Chairman of RERA Gurugram, emphasized the equal treatment of all stakeholders under the law, stating, “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.”
Coral Realtors Private Limited initiated the registration process with RERA, Gurugram, only after the Authority launched a suo motu proceeding in response to the matter. Despite queries from Moneycontrol, the developer has not provided an immediate response regarding the penalty.