Real estate ad before registration, firm fined Rs 30 lakh in Gurgaon

Real estate ad before registration, firm fined Rs 30 lakh in Gurgaon

“The respondent company is directed to deposit the penal amount of Rs 30 lakh within 15 days… failing which proceedings shall be initiated,” stated the order.

The Haryana Real Estate Regulatory Authority, Gurgaon, Tuesday announced a penalty of Rs 30 lakh on Krisumi Corporation Pvt Ltd for advertising a project that had not been registered with the authority, in “newspapers as well as on its website”.

The order states that advertisements promoting the “first Indo-Japanese mega real estate project, Krisumi City Waterfall Residences, Sector 36A, Gurgaon” were printed in two newspapers on February 26, 2018, following which a similar advertisement was published on the company’s website. The project is estimated to cost Rs 357.11 crore.

“The office of the authority, after taking cognizance of the above advertisement, made search of the record of its office (to see) whether the above project, for which advertisement has been made, is registered with the authority or not,” stated the order, adding that it was discovered that “no such project has been registered with the authority” — in violation of the provision of Section 3 (1) of the Real Estate (Regulations and Development) Act, 2016.

During the proceedings Tuesday, the counsel for the respondent, while admitting that advertisements had been issued, added that these were circulated “just for making the prospective buyers familiar with the project” and were “not made to invite applications for sale”. However, they admitted that “in the advertisement, the pictures of buildings shown are not realistic”.

The authority concluded that the company had committed a violation, “and rendered themselves for action”. “The respondent company is directed to deposit the penal amount of Rs 30 lakh within 15 days… failing which proceedings shall be initiated,” stated the order.

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