The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, imposed a Rs 50 lakh penalty on a real estate promoter for publishing a misleading advertisement in an English daily about their real estate project Green Oaks.
HRERA Spokesperson's Comments
According to an HRERA spokesperson, the authority took strong notice of the advertisement published on March 2 and sent a show cause notice to Countrywide Promoters Private Limited, requesting a response.
Violation of RERA Provisions
The spokesperson further elaborated that the authority found the promoter failed to properly describe the details in the advertisement, despite the mandatory provisions under Sections 11(2) and 13(1) of the Real Estate (Regulation and Development) Act 2016. This is a punishable offense under Section 61 of the act.
Penalty Imposed
"It is established that the promoter published a misleading advertisement to prevent prospective allottees from making an informed decision. The authority imposes a Rs 50 lakh penalty under Section 61 of the Act 2016," according to an HRERA order.
Project Details and RERA Registration
According to the HRERA spokesperson, Countrywide Promoters Private Limited is developing an affordable plotted colony, Green Oaks, in Sector 70-A Gurugram, under the Deen Dayal Jan Awas Yojna (DDJAY) Affordable Plotted Housing Policy-2016, and will obtain RERA registration in 2021.
Misleading Claims in the Advertisement
"It is abundantly clear that the promoter has issued a misleading advertisement for a DDJAY plotted colony, using alluring images to lead prospective investors to believe that the project includes a clubhouse and other amenities that do not exist in the project. This is a violation of section 7(1)(A)(i). According to the order, no details, information, or visuals of the project’s layout or site plan were provided to allow the prospective allottee to make an investment decision."