RERA slaps Rs 50 lakh fine on realtor for launching project without registration

Real estate regulatory authority RERA has imposed a Rs 50 lakh fine on a city-based realtor, Coral Realtors Pvt Ltd, for not registering its ongoing project with the authority. The realtor faced the penalty for advertising and creating third-party rights in the project prior to its registration, said an official.

According to an official statement, the Authority said it is a clear case of violation of Section 3 of Act, 2016.

"Therefore, the Authority decides to impose a penalty of Rs 50 lakh. The registration certificate will be issued only after receipt of the penalty," the order said.

Coral Realtors is building a commercial project Metro World Mall at Sector 56 in Gurugram. Section 3 of RERA Act makes registration of a real estate project mandatory before creating third party rights.

"No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate projects 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 this Section of Act 2016.

The promoter Coral Realtors applied for registration of the project with RERA, Gurugram, only after the Authority initiated a separate Suo Motu proceeding taking cognizance of the matter, according to the order.