The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken suo motu action against 628 housing projects across the state for not displaying registration number as well as QR code in the advertising materials. Collectively, these 628 projects have been penalised Rs 88.90 lakh, of which Rs 72.35 lakh has been recovered so far. Of the 628 housing projects, 312 are from the Mumbai region, 250 from the Pune region and 66 from the Nagpur region.The Mumbai region includes Mumbai, Mumbai suburban, Thane, Nashik and Konkan. These 312 projects faced penalties totalling Rs 54.25 lakh, of which Rs 41.50 lakh has been recovered.
Similarly, the Pune region covers Pune city, western Maharashtra and Marathwada. Here, action has been initiated against 250 projects with the consolidated penalty amount levied at Rs 28.30 lakh and Rs 24.75 lakh already recovered. There were 66 projects in the Nagpur region comprising all the districts of Vidarbha. A total of Rs 6.35 lakh penalty was imposed on the violators and Rs 6.10 lakh has been recovered, so far.
To keep one’s investment secured, MahaRERA has appealed to homebuyers not to engage in transactions with housing projects without the mandatory RERA registration number.
For effective implementation of guidelines and to identify violators, MahaRERA has been taking assistance from the Advertising Standards Council of India (ASCI). Advertisements are no more limited to the traditional medium. It is crucial to keep a check on the new-age formats as well. The collaboration with ASCI aims at expanding the horizons and identifying such violators in the new-age media and is backed by artificial intelligence. Thus far, the collaboration has helped in zeroing in on the violators in newspapers, websites, online video streaming channels and social media. Surprisingly, what has come to light is that the rate of violation is significantly higher on social media as compared to the traditional formats of advertisements.
As per the Real Estate (Regulation and Development) Act, it is binding for any project in Maharashtra that exceeds 500 square metres or involves more than eight apartments (including plots) to be registered with MahaRERA. No marketing activities or sales in such housing projects are permitted without securing registration number from the MahaRERA. Moreover, starting August 1, 2023, it has become mandatory for the developers to provide detailed information pertaining to the project such as project’s name, developer’s name, renewal of project’s registration, expected date of completion, registration status, pending complaints, pending litigations, any recovery warrants issued, among others. A simple scan of the project’s QR code should disclose all this information related to the project. Despite making it mandatory to print Registration number and QR code in all publicity materials, it was observed that some developers continue to have disregard for the guideline. Hence, MahaRERA initiated suo motu action against such violators and also served them show cause notices.
With the intent of ensuring homebuyers’ investments remain secured in real estate and prevent any financial loss, the government implemented the Real Estate (Regulation and Development) Act, 2016 and established MahaRERA for effective management for the sector. MahaRERA is vigilant about fundamental issues in the sector and it is also essential for the homebuyers to be alert and law abiding. MahaRERA urges flat purchasers to invest in only those projects that are regulator approved.
According to MahaRERA Chairman Ajoy Mehta, “Promoters of housing projects are not permitted to advertise their projects without a MahaRERA registration number. Starting August 1, 2023, it is also mandatory to display QR code with every advertisement. This enables homebuyers to access project related important information. Despite this, some developers are violating these guidelines. Therefore, MahaRERA is always on the lookout for such advertisements and regularly initiates action against the violators.”
Further he stated that, “Having MahaRERA registration number is synonymous to secure investment in real estate as it instils a sense of trust among flat purchasers. Post QR code success in Maharashtra, housing regulatory authorities in other states have also made it mandatory.MahaRERA’s commitment to maintain the trust continues and will not tolerate marketing content without a registration number as well as QR code. MahaRERA will continue taking punitive action against the violators.”
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