In a recent development, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed a penalty of Rs. 50,000 on Nabhraj Builders & Developers Pvt. Ltd. for violating section 11(2) of the RERA. The violation pertains to the promoter not prominently mentioning the MahaRERA registration numbers in a half-page advertisement published in the Lokmat newspaper.
MahaRERA is a government body that was established to regulate the real estate sector and protect the interests of homebuyers. As part of its mandate, MahaRERA ensures that real estate developers comply with various regulations related to project registration, advertisement, and delivery timelines.
In this article, we will explore the details of the case and the implications of the penalty imposed by MahaRERA on Nabhraj Builders.
Background of the case
Nabhraj Builders had published an advertisement on March 5, 2023, in the Lokmat newspaper for their projects "Nabhraj Trilok Heights, Nabhraj Trimurti and Nabhraj Nikunj" situated in Aurangabad. However, the advertisement did not mention the MahaRERA project registration numbers for these projects, as required by section 11(2) of the RERA.
Upon noticing the violation, MahaRERA issued a show-cause notice to Nabhraj Builders on March 8, 2023, asking them to explain the reason for not mentioning the registration numbers in their advertisement. In their response, Nabhraj Builders claimed that the advertisement was published by the Expo Organiser and that it was the first time that the MahaRERA registration number was missing in the advertisement.
MahaRERA conducted a hearing on April 17, 2023, to examine the details of the case. During the hearing, Nabhraj Builders submitted that the complementary advertisement was published by the Lokmat newspaper, being the Expo Organiser. However, the MahaRERA registration number was not mentioned in the said advertisement inadvertently. The promoter further submitted that it has mentioned the MahaRERA registration in advertisements in the Times of India newspaper published after the above-mentioned advertisement.
MahaRERA's order and its implications
After examining the case, MahaRERA concluded that Nabhraj Builders had violated section 11(2) of the RERA by not prominently mentioning the MahaRERA registration numbers in their advertisement. As a penalty, MahaRERA imposed a fine of Rs. 50,000 on Nabhraj Builders, which they are required to pay within 15 days of the order.
If Nabhraj Builders fail to pay the penalty within the stipulated timeframe, MahaRERA may impose a further penalty of Rs. 1,000 per day until compliance. Additionally, the Technical and Finance Department of MahaRERA will verify the payment of the penalty before processing any applications related to the said project.
Implications for real estate developers
The penalty imposed on Nabhraj Builders highlights the importance of complying with various regulations related to real estate advertising. Real estate developers must ensure that all their advertisements prominently mention the MahaRERA registration numbers of their projects.
Non-compliance with regulations related to real estate advertising can result in penalties and damage to the reputation of the developer. Additionally, homebuyers may lose faith in the developer, which can impact their business in the long term.
As a conclusion, it is essential for real estate promoters and developers to comply with the regulations set by MahaRERA to ensure transparency and accountability in the industry. The obligation to mention the registration number of the project in advertisements or prospectus is critical to ensure that consumers have access to all the necessary information about the property they are interested in investing in.
In this particular case, Nabhraj Builders & Developers Pvt. Ltd. failed to comply with the regulations, resulting in a penalty of Rs. 50,000/- imposed upon them under section 61 of RERA. It is imperative for promoters to understand the importance of adhering to the regulations and ensure that all necessary information is mentioned in advertisements and prospectus.
The MahaRERA authority plays a significant role in regulating the real estate industry in Maharashtra and works towards protecting the interests of homebuyers and investors. As consumers, it is essential to be aware of the regulations and guidelines set by MahaRERA to make informed decisions when investing in real estate properties.
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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