MahaRERA Imposes Penalty on Chandramouli Properties for Violating RERA Advertisement Rules

Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed a penalty of Rs. 50,000 on a real estate promoter, Chandramouli Properties, for violating section 11(2) of the Real Estate (Regulation and Development) Act, 2016 (RERA). The promoter had published an advertisement in a local newspaper without mentioning the MahaRERA project registration number. In this article, we will discuss the details of the violation, penalty, and its implications.

Background

In this case, the Maharashtra Real Estate Regulatory Authority (MahaRERA) took suo motu action against Chandramouli Properties, a real estate promoter, for violating the regulations by publishing an advertisement without mentioning the MahaRERA project registration number. The advertisement in question was published in the Lokmat Newspaper on 5th March 2023, regarding their project "Chandramouli Pinnacle – 2" situated in Aurangabad.

The MahaRERA had issued a show cause notice to the promoter for the violation, and a hearing was scheduled on 17th April 2023 through video conferencing, as per MahaRERA Circular No. 27/2020 and MahaRERA Order No. 593/2023. The promoter appeared through its representative and made submissions in this regard. Based on the submissions and relevant regulations, the MahaRERA authority issued an order imposing a penalty of Rs. 50,000/- under section 61 of the RERA for the promoter's violation of section 11(2) of the RERA.

Show Cause Notice and Promoter's Response

MahaRERA authorities issued a show cause notice to the promoter on March 8, 2023, for violating section 11(2) of RERA. The promoter submitted its response on March 20, 2023, stating that it was an inadvertent oversight from the marketing team, and due to being their first project, they were not aware of the requirement. The promoter assured the authorities that they would mention the MahaRERA registration number in all their future advertisements.

Hearing and Penalty Imposed

MahaRERA authorities scheduled a hearing on April 17, 2023, as per the MahaRERA Circular No. 27/2020 and MahaRERA Order No. 593/2023. During the hearing, the promoter accepted that it was an oversight, and they would ensure to mention the MahaRERA registration number in all their advertisements. However, considering the violation of section 11(2) of RERA, MahaRERA authorities imposed a penalty of Rs. 50,000 on the promoter under section 61 of RERA.

Implications of the Penalty

The penalty imposed on the promoter by MahaRERA authorities sends a strong message to all the real estate promoters to adhere to the RERA guidelines strictly. RERA aims to protect the interests of homebuyers and ensure transparency in the real estate sector. Non-compliance with RERA guidelines can result in hefty penalties and even cancellation of the project registration.

MahaRERA authorities have imposed a penalty of Rs. 50,000 on Chandramouli Properties for violating section 11(2) of RERA by publishing an advertisement without mentioning the MahaRERA project registration number. This penalty is a reminder to all the real estate promoters to adhere to the RERA guidelines strictly and ensure transparency in the real estate sector. The promoter has been given 15 days to pay the penalty, failing which a further penalty of Rs. 1,000 per day would be imposed till compliance. The Technical and Finance Department of MahaRERA would verify the payment of the penalty before processing any applications related to the said project.

Note: The information provided in this article about Maharashtra Real Estate Regulatory Authority (MahaRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.

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