Real estate regulation punishes unregistered mall

The Haryana Real Estate Regulatory Authority (RERA) has slapped a fine of Rs 50 lakh on Coral Realtors Pvt Ltd, a Gurugram-based real estate developer, for advertising and creating third-party rights in their ongoing project without registering it with the authority. This move by RERA is in accordance with Section 3 of the Real Estate (Regulation and Development) Act, 2016. Violation of Section 3 of the Act According to an official statement, the Haryana RERA deemed this as a clear case of violation of Section 3 of the Act. This section mandates the registration of a real estate project before creating third-party rights. It prohibits promoters from advertising, marketing, booking, selling, or inviting people to purchase any plot, apartment, or building without registering the project with RERA. Penalty Imposed by RERA Due to the violation of Section 3, Haryana RERA has decided to impose a penalty of Rs 50 lakh on Coral Realtors. The registration certificate for their ongoing project, Metro World Mall at Sector 56 in Gurugram, will be issued only after the payment of the penalty. This penalty serves both as a deterrence to other developers and as a lesson to Coral Realtors to comply with the regulations. Application for Registration submitted after RERA’s Suo Motu Proceedings It is worth noting that Coral Realtors applied for registration of their project with the RERA authority in Gurugram only after the authority initiated separate Suo Motu proceedings. This action by RERA highlights the importance of proactive measures in ensuring compliance with the law. Protecting the Interests of Buyers The strict enforcement of regulations by RERA is vital for safeguarding the interests and rights of homebuyers. By ensuring that developers register their projects and follow all necessary procedures, RERA aims to create a transparent and accountable real estate sector. Preventing Unscrupulous Practices The charging of a substantial penalty on Coral Realtors by Haryana RERA sends a strong message to the real estate industry. It serves as a warning to developers and builders to adhere to the provisions of the law and refrain from engaging in unscrupulous practices that can cause financial harm to homebuyers. Conclusion The fine imposed by Haryana RERA on Coral Realtors for promoting their new mall without registration demonstrates the authority’s commitment to enforcing regulations and protecting the interests of buyers. This move sets a precedent for future enforcement actions, emphasizing the importance of compliance with the Real Estate (Regulation and Development) Act, 2016. Developers and builders must ensure they fulfill all legal obligations to maintain transparency and accountability in the industry.

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