Developer fined Rs 50 L for 'unitentional violation' of RERA Act

Maharashtra Real Estate Regulatory Authority on Thursday asked Piramal Realty, a developer, to pay a fine of Rs 50 lakh for not printing the MahaRERA registration number on the front page of a three-page advertisement. This is one of the biggest penalty slapped against a developer, so far. The suo moto action was taken by MahaRERA chairman Gautam Chaterjee against a project by the developer in Mahalaxmi.

The order mentioned that section 11 (2) of the RERA Act, 2016, states that advertisement or prospectus issued or published by a promoter shall mention prominently the website address of the authority, wherein all details of the registered project will be entered; it will also include the registration number obtained from the authority.

Despite this, it has come to the notice of MahaRERA that the aforementioned promoter has published a front page advertisement, which prima facie violated section 11 (2) of the Act. The contentions held by MahaRERA state that on the front page, the promoter didn't mention the MahaRERA registration number anywhere. The registration number is mentioned on the second page in a very small font/print. In the full page advertisement the MahaRERA registration number is not accompanied by the website address of MahaRERA either.

Taking suo moto cognizance of the matter, the promoter was summoned on April 5, by a notice to explain why they should be exempted from paying the penalty. During the hearing, Rupen Kanawala, General Manager (Legal), Piramal Realty, accepted the alleged violation of the provisions of the Act and stated that the same are totally inadvertent and they did not have any intention to show non-compliance towards it. They offered unconditional apology and requested the authority to not impose a penalty for the violation.

The developer further gave an undertaking that no such violation would happen in the future and that they will strictly comply with the provisions of the Act.

MahaRERA accepted the contention that the aforesaid violations have happened unintentionally, and under the provisions of section 61 of the Act, direvted the promoter to pay a penalty of Rs 50 lakh.

According to Vasant Prabhu, Secretary, MahaRERA, this is the highest fine ever imposed on a developer for not following the rules and provision with regards to printing the MahaRERA no and website in an advertisement.
Attempts to get a response from Piramal Realty didn't yield any result.

IN DEFENSE

• They offered unconditional apology and requested the authority to not impose  a penalty for the violation.

• The developer gave an undertaking that no such violation would happen in the future and that they will strictly comply with the provisions of the Act.