The Haryana Real Estate Regulatory Authority (HRERA) has imposed a penalty of Rs 50 lakh on Countrywide Promoters Private Limited for publishing a misleading advertisement in a newspaper about its real estate project Green Oaks. The advertisement, which appeared in an English daily on March 2, caught the attention of the authority, prompting them to take action.
Violation of Mandatory Provisions According to an official statement, the HRERA observed that the promoter did not describe the project details in a proper manner in the advertisement, violating mandatory provisions under Section 112 and 131 of the Real Estate Regulation and Development Act 2016. Such a violation is considered a punishable offence under Section 61 of the Act. The order stated, “It is clearly established that the promoter Countrywide Promoters Pvt Ltd has indulged in publishing a misleading advertisement to confuse the prospective allottees in making an informed choice.”
Fictitious Images and Misleading Facilities The misleading advertisement showcased a photo of a garden/park named “Garden of Dreams” on one full page and displayed a picture of a club on the next page, although the club is not part of the project. The rest of the advertisement featured facilities that are not part of the project, including a squash court, state-of-the-art clubhouse, covered pool and spa, outdoor library, rejuvenating sculptural rocks, and a coffee lounge counter. This misrepresentation was deemed misleading by the HRERA.
Violation of Section 71Ai The HRERA also stated that no details, information, or visuals of the actual layout or site plan of the project were provided in the advertisement. This violation amounts to a violation of Section 71Ai of the Act. Prospective investors were not provided with the necessary information to make an informed decision about investing in the project.
Failure to Update Registration Details The promoter also failed to get the registration details amended as per the revised layout. The Green Oaks project, an affordable plotted colony being developed by Countrywide Promoters Private Limited, was launched in 2021, and the layout plan was revised in 2023. Consequences The HRERA’s penalty of Rs 50 lakh imposed on Countrywide Promoters Pvt Ltd serves as a warning and a reminder to real estate developers to adhere to the provisions of the Real Estate Regulation and Development Act 2016 while advertising their projects. Misleading advertisements not only confuse prospective buyers but also undermine trust in the real estate sector. The HRERA’s action highlights the authority’s commitment to protecting consumer interests and ensuring transparency in the real estate market. Prospective homebuyers are urged to exercise caution and conduct proper due diligence before investing in any real estate project. As the real estate industry continues to grow and evolve, it becomes crucial for regulators to crack down on misleading practices and promote fair dealings. Such actions will not only benefit buyers but also contribute to the overall development of the sector.
About HRERA The Haryana Real Estate Regulatory Authority (HRERA) is a regulatory body set up under the Real Estate Regulation and Development Act 2016. Its primary objective is to ensure accountability and transparency in the real estate sector, protect the interests of homebuyers, and promote fair practices in the industry.
Conclusion The penalty imposed by the Gurugram bench of the HRERA on Countrywide Promoters Pvt Ltd serves as a deterrent against misleading advertisements in the real estate sector. It underscores the need for developers to provide accurate information about their projects, enabling prospective buyers to make informed decisions. The HRERA’s action reinforces its commitment to promoting a transparent and trustworthy real estate market in Haryana. Homebuyers are advised to exercise caution and choose projects that comply with regulatory requirements.
