It is believed that since the formation of RERA Act in 2016, the real estate sector has seen productive changes. Addressing the theme ‘RERA: Continuing to Increase Transparency & Efficiency in Real Estate; The Impact of Covid-19 and the Way Forward’, Elets Technomedia Pvt. Ltd. organised the National Housing Summit on August 26, 2020.
Throwing light on the session’s theme from an Act-specific perspective, Rajesh Mehtani, Additional Management Representative, Uttar Pradesh Housing and Development Board addressed the summit.
Speaking to the audience, especially promoters, on the RERA Act, he said, “It is observed that most complaints that are filed are under sections 12, 14, 18 and 19. Sections 14, 18 and 19 majorly talks about the post-agreement scenario, however, section 12 is a little different. Section 12 of the RERA Act talks about the veracity of advertisement.” Promoters must be careful while using some marketing phrases like ‘10 mins drive from the airport’, ‘world-class amenities available’, ‘all approvals cleared’, ‘assured rentals’, etc. as these could be misleading because there exists no certification or study by any organisation backing these claims, he added.
He directly aimed his words to the promoters and developers saying that such phrases used for the marketing of residential projects can lead to action against promoters under the RERA Act as providing misleading information to the people or potential buyers is forbidden. He pointed out, “Promoters must be careful while advertising the products. It is the duty of the promoter to understand that there are people from different financial backgrounds, level of education, knowledge and understanding who look at these advertisements and make up their mind accordingly.”
Adding to his address to the promoters and developers, Mehtani highlighted, “There are many developers and promoters who present show apartments to buyers as a sample apartment to lure them. But, the real apartment that is delivered is different from what was shown earlier. Differences like missing glass partitions, attached wardrobes, vanity in toilet-cum-bathroom, etc. are some of the examples that are seen in the show apartment but are not delivered.” Such agents, promoters and developers must understand that these also come under section 12 of the RERA Act.
Concluding his address with a piece of advice the people in the sector, he said, “Prevention is better than cure. We generally tend to ignore section 12 of the Act and use such marketing strategies. These should be avoided. Moreover, today the real estate sector is amid troubled waters, thanks to COVID pandemic, and using such misleading marketing strategies can make the situation worse.”