The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued a show cause notice on Thursday against Sai Estate Consultant, a real estate firm in Chembur, Mumbai for publishing a misleading advertisement. Counting as an unfair trade practice, the RERA has asked the firm to appear before the authority today with their explanation.
Varsha-Raut, Head of Advocacy & Campaigns, Mumbai Grahak Panchayat raised the issue after Haware Builders put up an advertisement about their project in Thane in a Marathi newspaper on June 1st, 2017. In the advertisement, the builder mentioned Sai Estate Consultant (SEC) as a marketing agent for the project along with their RERA registration number. Varsha alleged that the ad misleads buyers, giving an impression that the project is registered with the RERA .
In the notice issued to the firm, it is mentioned that the advertisement clearly depicts that the firm is misleading the public falsely stating that the project is registered with the MahaRERA, which is punishable under section 62 of the Act and can attract a fine up to 5% of the total project cost.
As per Mr. Gautam Chaterjee , the Chairman of Maharashtra RERA, this is the first show cause notice issued to any realtor in the state. As of now, the developers can advertise their on-going projects without registering with the RERA till July 31st, 2017. In case a broker or a brokerage firm has registered with the authority in the given period, then as per the rules, the same can market or sell only the RERA registered projects.
The agency has violated Rule 14 of the registration regulation and sections 9 and 10 of the Act. If the firm fails to explain the reason behind such deed and the probe got justified by the authority, then this will be considered as the breaching of the RERA rules.
Maharashtra is one of the few states to notify the Real Estate (Regulation & development) Act. The RERA mandates all the developers to register their projects for which they have not received the completion certificate before the commencement of the Act.