Punjab builders flout Rera rules to advertise projects
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Punjab builders flout Rera rules to advertise projects

Gross violation: Seldom does any advertisement mention registration number of project.

punjab Updated: Nov 23, 2017 12:41 IST
Munieshwer A Sagar
Munieshwer A Sagar
Hindustan Times, Chandigarh
Punjab builders,Rera rules,Real Estate (Regulation and Development) Act
Mostly builders advertising their realty projects on radio channels are also not providing the project registration number.(HT File )

The Real Estate (Regulation and Development) Act 2016 was supposed to bring the much needed transparency and accountability in the real estate sector. But, in Punjab, many builders continue to take buyers for a ride in violation of the Act and the Punjab State Real Estate (Regulation and Development) Rules, 2017. Many builders are advertising, marketing and selling projects in contravention of the Act and state Rera rules.

Under Section 3 of the Rera Act, no promoter can advertise, market or sell in any manner any property, “in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act”.

What is an ad?
  • The Rera Act comprehensively defines ‘advertisement’ as “any document described or issued as advertisement through any medium and includes any notice, circular or other documents or publicity in any form, informing persons about a real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or apartment or to make an advance or deposit for such purposes.”

Section 11 of the Act, makes it mandatory for the builder to mention prominently the registration number obtained from the state Rera in the advertisement for a project.

Many builders in their ads appearing across different media are neither mentioning whether the said project is registered with the state Rera nor the registration number. We sampled ten advertisements published in various newspapers last week, and found that in nine cases, builders, offering commercial and residential projects, did not mention the registration number of their projects or whether it was registered with Punjab Rera. Only one builder coming up with a residential project in Mullanpur, Mohali, mentioned the state Rera registration number in the ad. It is the same with ads on the FM radio. Most of the builders advertising their realty projects on radio channels are also not providing the project registration number.

SMS (short message service) is also being used to circumvent the Act provisions regarding advertisement and sale of property. For instance, one SMS (a copy of which is with HT) advertising a residential project coming up in Morinda neither mentions the registration number nor the registration status of the project. Most of these SMS advertisements merely mention the project and builder’s name.

Official Speak

NS Kang, chairman, Punjab Rera, said, “We are monitoring the situation, and whenever we spot an advertisement violating the Rera Act and state Rera rules, we initiate action against the erring builder.”

When asked whether any action has been taken so far against any builder for advertising or marketing a project in violation of the Act, he informed, “So far we have issued a notice to a Zirkapur-based builder in this regard.”

Regarding the radio advertisements, he said they are planning to issue an advertisement creating awareness about this issue. As for the SMS advertisements, he said “we cannot control these as most are sent by anonymous sources and it is very difficult to rein them in.”

First Published: Nov 23, 2017 12:41 IST