H-Rera imposes ₹3 cr fine for advertising housing projects without registry
The Haryana Real Estate Regulatory Authority (H-Rera) imposed a penalty of ₹ 3 crore on real estate developer M3M for allegedly advertising and marketing two of its projects without registering them with the authority, which is a legal requirement as per the Rera norms.
In a statement issued on Wednesday, the H-Rera, Gurugram said that it has taken suo motu cognisance of the issues and a bench, headed by H-Rera chairman KK Khandelwal and members Samir Kumar and Vijay Kumar Goyal, imposed the penalty.
The authority said that a penalty of ₹2.59 crore was imposed on the developer for advertising boutique floors at a project titled City of Dreams in Sector 89 of Gurugram, while a penalty of ₹50 lakh was imposed on M3M, Smart World Developers and Suposhaa Realcon Private Limited with regard to the Smart World Floors project in Sector 61.
The developer, M3M, however, declined to comment on the matter.
H-Rera, Gurugram, also observed that a “malicious trend” of advertising real estate projects without prior registration is being observed among real estate promoters. “It is found that promoters are getting advertised their unregistered projects either directly or through their channel partner/real estate agents. The Real Estate (Regulation and Development) Act, 2016 makes it mandatory to register all commercial or residential projects before its launch, to promote transparency in real estate sector. It is noticed that promoters are not getting their projects registered but getting them advertised in the market luring the investors to invest,” it stated.