Gurgaon RERA fines developer for 'misleading' ad

Penalty Imposed by H-Rera

The Haryana Real Estate Regulatory Authority (H-Rera) has slapped a Rs 25 lakh penalty on the developer of a city affordable housing project for printing a false advertisement. The authorities had previously issued a show-cause notice to the developer of Golden Gate Residency because its marketing depicted project facilities that were not part of the sanctioned layout design, deceiving investors.

Details of the Penalty

Arun Kumar, CEO of H-Rera Gurgaon, taking suo motu cognisance of the misleading advertisement of a real estate project under the Deen Dayal Jan Awas Yojana (DDJAY) scheme, the authority has imposed a penalty of Rs 25 lakh on its promoter company, Yashvi Homes Private Limited.

Reasons for Penalty

• False depiction of project facilities
• Mention of amenities not part of the approved layout plan

"While there is no provision for amenities like a school, clubhouse, swimming pool, badminton court, half basketball court in the approved layout plan submitted by the promoter at the time of registration, the same has been mentioned in the advertisement," he went on to say.

In addition to showcasing inaccurate facilities, the marketing referred to the housing programme as DDJAY 2024, which is false and deceptive, according to an H-Rera representative. "The scheme is DDJAY 2016." Furthermore, the promoter has not fully stated the specifics of the project's registration and H-Rera website, as required by the laws," the officer said.

Legal Violations

According to Section 11(2) of the Rera Act of 2016, the advertisement or prospectus issued or published by the promoter must prominently display the authority's website address , where all details of the registered project have been entered, as well as the registration number obtained from the authority. The developer also reportedly suggested an advance on the cost of a unit from homeowners in the marketing. Section 13(1) of the Act states that no promoter may receive more than 10% of the cost of the flat, plot or building as an advance payment or application fee from a person without first entering into a formal agreement for sale and registering the sale agreement.

Residential Projects Study

Meanwhile, H-Rera launched a study of halted residential projects last week, marking a first for the city. This occurred weeks after UP implemented a rehabilitation package to restart stalled projects based on the Amitabh Kant panel's recommendations. According to H-Rera authorities, Kumar ordered the study to assess the reality of the projects on the ground and verify the promises made by developers in order to prevent legal action. He also toured numerous affordable housing developments along Golf Course Road Extension that had been left unfinished for several years.