HRERA imposes penalty on real estate promoter for misleading ad

The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has imposed a penalty of ₹50 lakh on a real estate promoter for publishing a misleading advertisement in an English daily about its real estate project Green Oaks.
A HRERA spokesperson said the authority took strong note of the advertisement published on March 2 and sent a show cause notice to Countrywide Promoters Private Limited asking for a reply.
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The authority, the spokesperson said, observed that despite mandatory provisions under Sections 11(2) and 13(1) of the Real Estate (Regulation and Development) Act 2016 the promoter did not properly describe the details in the advertisement, which is a punishable offence under the Section 61 of the act.
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“It is established that the promoter has indulged in publishing a misleading advertisement to confuse the prospective allottees in making an informed choice. Therefore, the authority hereby imposes a penalty amounting to ₹50 lakh under Section 61 of the act 2016,” said an HRERA order.
The HRERA spokesperson said Countrywide Promoters Private Limited is developing an affordable plotted colony Green Oaks at Sector 70-A, Gurugram, under Deen Dayal Jan Awas Yojana (DDJAY) Affordable Plotted Housing Policy-2016 after obtaining RERA registration in 2021.
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“It is abundantly clear that the promoter has issued a misleading advertisement for a DDJAY plotted colony to show alluring images to make the prospective investor believe that the project comprises a clubhouse and such facilities, which do not exist in the project. This amounts to a violation of Section 7(1)(A)(i). No details, information, or visuals of the actual layout or site plan of the project have been provided to enable the prospective allottee to decide upon investing in the project,” said the order.