Poorva Developers Fined Rs. 25,000 by MahaRERA for Violating RERA Regulations

Poorva Developers, a well-known real estate promoter in India, has been fined by the Maharashtra Real Estate Regulatory Authority (MahaRERA) for violating Section 11(2) of the Real Estate (Regulation and Development) Act, 2016 (RERA). The case was initiated suo motu by MahaRERA, and the penalty was imposed on Poorva Developers for publishing an advertisement in the Sakaal Newspaper without mentioning the MahaRERA project registration number.

What is Section 11(2) of RERA?

Section 11(2) of RERA mandates that the promoter should prominently mention the website address of the authority where all details of the registered project have been entered, along with the registration number obtained from the authority, and other incidental details. The section applies to all advertisements and prospectuses issued or published by the promoter.

What Happened in this Case?

Poorva Developers had published a half-page advertisement in the Sakaal newspaper on 17th March 2023, for their project "Prem Jeet Residency" situated in Aurangabad. However, the MahaRERA project registration number was not mentioned in the advertisement, which is a clear violation of Section 11(2) of RERA.

MahaRERA issued a show cause notice to Poorva Developers on 20th March 2023, asking for an explanation for the violation. Poorva Developers responded via email on 3rd April 2023, stating that the MahaRERA registration number was not mentioned inadvertently.

What Happened at the Hearing?

MahaRERA scheduled a hearing on 17th April 2023 through video conferencing, as per Circular No. 27/2020 and Order No. 593/2023. Poorva Developers appeared through its representative and made its submissions.

During the hearing, Poorva Developers argued that since this was the first advertisement for this project, the MahaRERA registration number was not mentioned due to an oversight. However, the authority found that the promoter was in violation of Section 11(2) of RERA.

What was the Penalty Imposed?

MahaRERA imposed a penalty of Rs. 25,000/- on Poorva Developers for violating Section 11(2) of RERA. The promoter was directed to pay the penalty within 15 days from the date of the order. If the payment was not made within the specified time, a further penalty of Rs. 1,000/- per day would be imposed until compliance.

The Technical and Finance Department of MahaRERA will verify the payment of the penalty before processing any applications, such as extension, correction, change of name, etc., related to the project.

What Does this Mean for Real Estate Promoters?

Real estate promoters must comply with all the provisions of RERA, including Section 11(2), to avoid any penalties or legal action by the regulatory authorities. The provision was introduced to ensure transparency and accountability in the real estate sector and protect the interests of homebuyers.

Real estate promoters should ensure that they mention the MahaRERA project registration number prominently in all their advertisements and prospectuses to avoid any oversight. They should also ensure that they comply with all the other provisions of RERA to avoid any penalties or legal action.

The case against Poorva Developers is a reminder that real estate promoters must comply with all the provisions of RERA to avoid any penalties or legal action. Section 11(2) of the RERA mandates that the promoter should prominently mention the registration number of the project in all advertisements and prospectuses. In this case, Poorva Developers failed to mention the registration number of their project in their advertisement, resulting in a penalty of Rs. 25,000 under section 61 of the RERA.

It is essential for promoters to understand the legal obligations and requirements set out by RERA. They must ensure that they comply with all the provisions and guidelines to avoid any legal action. The penalty imposed by MahaRERA serves as a warning to other promoters to be vigilant and comply with the regulations set out by the authority.

As a homebuyer, it is crucial to be aware of the regulations set out by RERA and to verify the registration details of the project before making any investments. Any project registered with RERA is subject to the regulations set out by the authority, and any violation of these regulations can result in penalties and legal action.

In conclusion, the case against Poorva Developers serves as a reminder to all promoters to comply with the regulations set out by RERA. It is essential to follow all the guidelines set out by the authority to avoid any legal action or penalties. As a homebuyer, it is crucial to be aware of the regulations set out by RERA and to verify the registration details of the project before making any investments.

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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