{"id":13436,"date":"2020-07-23T14:34:58","date_gmt":"2020-07-23T09:04:58","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=13436"},"modified":"2020-07-23T16:16:37","modified_gmt":"2020-07-23T10:46:37","slug":"unfair-practice-in-rera-misleading-real-estate-advertisements","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/","title":{"rendered":"Unfair practice in RERA: Misleading Real Estate Advertisements"},"content":{"rendered":"\n<p class=\"has-drop-cap\">RERA was enacted for the regulation and\npromotion of the real estate sector. Further, to ensure the sale of plot,\napartment, or building, as the case may be, or sale of real estate project,\nefficiently and transparently, and to protect consumers&#8217; interest in the real\nestate sector. However, there are some misleading real estate advertisements\nmade by an unfair trade practice regulated by RERA.<\/p>\n\n\n\n<p>The term &#8220;<strong>unfair practice means<\/strong>&#8221; a practice that, promote the sale or development of any real estate project adopts any unfair method or deceptive practice including any of the following practices, namely:- <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"599\" height=\"429\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-107.png\" alt=\"Unfair Practice under RERA\" class=\"wp-image-13437\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-107.png 599w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-107-300x215.png 300w\" sizes=\"(max-width: 599px) 100vw, 599px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/#The_Definition_of_the_advertisement_reads_in_Section_2_b\" >The Definition of the advertisement reads in Section 2 (b)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/#Misleading_real_estate_advertisements\" >Misleading real estate advertisements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/#Advertising_Standards_Council_of_India_%E2%80%93_ASCI\" >Advertising Standards Council of India \u2013 ASCI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/unfair-practice-in-rera-misleading-real-estate-advertisements\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Definition_of_the_advertisement_reads_in_Section_2_b\"><\/span>The Definition of the advertisement reads in Section 2 (b)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The &#8220;<strong>advertisement<\/strong>&#8221; means a &#8220;document described or issued as an advertisement by any medium and includes any notice, circular or other documents or publicity in any form, informing persons about the real estate project, or offering for sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, apartment or building or to make advances or deposits for such purposes.&#8221;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/duties-of-promoter-under-rera\/\">Guide: Duties of Promoter under RERA\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Misleading_real_estate_advertisements\"><\/span>Misleading real estate advertisements <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Misleading real estate advertisement has the following Consequences. Those are as follows:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revocation of Registration granted under RERA<\/h3>\n\n\n\n<p>(1) The Authority can on receipt of a <a href=\"https:\/\/corpbiz.io\/rera-complaint\"><strong>RERA complaint<\/strong><\/a> or suo motu in this behalf or on the recommendation of the competent Authority, revoke the registration granted under section 5, after being satisfied that-<\/p>\n\n\n\n<ul><li>The promoter makes it default\nin doing anything required by or under the Act or rules and regulations made\nthereunder.<\/li><li>The promoter violates the terms\nor conditions of the approval given by a competent authority.<\/li><li>The promoter if gets involved\nin any type of unfair practice or irregularities. <\/li><li>The promoter indulges in any of\nthe fraudulent practices. <\/li><\/ul>\n\n\n\n<p>(2) The <a href=\"https:\/\/corpbiz.io\/rera-registration\"><strong>RERA registration<\/strong><\/a> granted to a promoter under section 5 must not be revoked, unless the Authority has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it is proposed to revoke the registration, and has considered the promoter shows any cause within a period of that notice against the proposed revocation.<\/p>\n\n\n\n<p>(3) The Authority can instead of revoking\nthe registration under sub-section (1) permit it to remain in force subject to\nfurther terms and conditions as it thinks fit to impose in the interest of the\nallottees, and any such terms and conditions so imposed must be binding upon\nthe promoter.<\/p>\n\n\n\n<p>&nbsp;(4) The Authority, upon revocation of the registration-<\/p>\n\n\n\n<ul><li>Must debar the promoter from\naccessing its website in relation to that project, specify his name in the list\nof defaulters, display his photograph on its website, and inform the other Real\nEstate Regulatory Authority in other States and Union territories about such\nrevocation or registration;<\/li><li>Must facilitate the remaining\ndevelopment works to be carried out as per the provisions of section 8<\/li><li>Must direct the bank holding\nthe project bank account, specified under sub-clause (D) of clause (I) of\nsub-section (2) of section 4, to freeze the account. Further, necessary actions\nwould be taken, including consequent de-freezing of the said account, towards\nfacilitating the remaining development works as per the provisions of section 8.<\/li><li>Can protect the interest of allottees or, in the public interest, issue such directions as it may deem necessary.  <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Obligations of promoter<\/h3>\n\n\n\n<ul><li>The real estate advertisements and prospectus issued or published by a promoter must mention the website address of the Authority prominently, wherein all details of the registered project have been entered and include the registration number obtained from the Authority and such other matters incidental to it.<\/li><\/ul>\n\n\n\n<ul><li>Where the person makes an\nadvance or a deposit based on the information contained in the notice,\nadvertisement or prospectus, or based on any model apartment, building or plot,\nas a case may be, and sustains any loss or damage by reason of any incorrect,\nfalse statement included therein, he must be compensated by a promoter in the\nmanner as provided under the Act.<\/li><\/ul>\n\n\n\n<ul><li>Provided that if any person affected by such incorrect, false statement contained in the notice, real estate advertisements or prospectus, or the model apartment, plot or building, intends to withdraw from the proposed project, he must be returned his entire investment along with interest at such rate as has been prescribed and compensation given in the manner provided under the Act.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advertising_Standards_Council_of_India_%E2%80%93_ASCI\"><\/span>Advertising Standards Council of India \u2013 ASCI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Another important body is the A<strong>dvertising Standards Council of India (ASCI), established in 1985<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Advertising_Standards_Council_of_India\"><strong>[1]<\/strong><\/a><\/sup>, a voluntary self-regulatory organization of India&#8217;s advertising industry. It is the non-Government body. ASCUS has been adopted as a Code for Self-Regulation in Advertising, which is a Self-Regulatory organization.<\/p>\n\n\n\n<p>It has the commitment to honest Advertising\nand to fair competition in the market-place. It stands for protecting the\nlegitimate interests of consumers and all concerned with Advertising \u2013\nAdvertisers, Advertising Agencies, Media, and others who help in the creation\nor placement of advertisements. This was forced before RERA implemented and\nalso operates now.<\/p>\n\n\n\n<p>The purpose of a Code is to control\nadvertisements&#8217; content, not to hamper the sale of products which can be found\noffensive, for whatever reason, by some people. Provided, that advertisements\nfor such products are not themselves offensive, there will normally be no\nground for objection to them in terms of this Code.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The legal system that was once considered as time trapped in terms of relief, and the buyers were left at the lurch of builders, has been sea changed. The new law and interplay with existing frameworks allow buyers to mend the willful disobedient builders and get them to the task. These measures against misleading real estate advertisements have now enshrined new hopes and faith in the real estate sector.  <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> will be happy to serve you if you are in middle of any issues of RERA and its registration aspects. We have in-depth and practical experience in dealing with various issues and RERA litigation before different RERA authority. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/penalties-under-rera-on-builders-and-agents\/\">Penalties under RERA on Builders and Agents<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RERA was enacted for the regulation and promotion of the real estate sector. Further, to ensure the sale of plot, apartment, or building, as the case may be, or sale of real estate project, efficiently and transparently, and to protect consumers&#8217; interest in the real estate sector. However, there are some misleading real estate advertisements [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":13443,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[182],"tags":[789],"acf":{"service_id":"102"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":7077,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13436"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=13436"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13436\/revisions"}],"predecessor-version":[{"id":13471,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13436\/revisions\/13471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/13443"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=13436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=13436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=13436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}