Haryana Real Estate Regulatory Authority fines 3 developers Rs 4 crore for ‘illegal advertising.

H-Rera fines 3 developers Rs 4 crore for ‘illegal advertising’

Taking suo motu cognisance of ‘illegal Gurgaon: Taking suo motu cognisance of ‘illegal advertising’ of unregistered real estate projects, the Haryana Real Estate Regulatory Authority (H-Rera) has imposed a penalty of Rs 4 crore on three developers.

H-Rera chairman KK Khandelwal said the Authority imposed a penalty of Rs 2.5 crore on M3M Pvt Ltd on Wednesday for advertising boutique floors at its project in Sector 89. An additional penalty of Rs 50 lakh was imposed on the realtor for another project, Smart World Floors in Sector 61.

“Along with this, a fine of Rs 50 lakh each was also slapped on two other developers, Smart World Developers and Suposhaa Realcon, who are M3M’s partners in the Smart World project,” he added.

TOI reached out to M3M for a comment but didn’t get a response.

Khandelwal said a malicious trend of advertising real estate projects without prior registration with the authority has been observed amongst developers. “It has been found that promoters are getting unregistered projects advertised, either directly or through agents, to lure investors,” he said.

According to the Real Estate (Regulation and Development) Act, 2016, which came into force on May 1, 2017, promoters are required to register projects before advertisement, marketing or sale of any plot, apartment or building in any real estate project, the H-Rera chief said.

“The strict action of the Authority will send the right signals to erring builders and will go a long way in reposing the faith of allottees in the real estate sector. Such strict action will also act as a deterrent for the other builders who remain non-compliant towards the Act of 2016 and the directions passed by the Authority as per the provisions of the Act,” said an H-Rera official.

The H-Rera chief said these developers have been advertising their unregistered projects despite several directions. Members of the Authority, including Sameer Kumar and Vijay Kumar, took a serious view of the issue and expressed displeasure and dissatisfaction on such “unprofessional conduct” of the developers and observed that such developers should be meticulously punished for violations, Khandelwal added.

In January, H-Rera had imposed a penalty of nearly Rs 2.3 crore on three builders and ordered MCG to demolish the unauthorised structures they had built for advertising and selling projects without registering them under the Rera Act.

Source: https://timesofindia.indiatimes.com/city/gurgaon/h-rera-fines-3-developers-rs-4-crore-for-illegal-advertising/articleshow/87007240.cms