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No ads of realty projects without registering with regulator, says govt

NAREDCO President said prohibition on advertisements in the ongoing projects will hit industry

Press Trust of India  |  New Delhi 

real estate, property

Clearing the air on developers issuing advertisements, the government has said no ongoing or future projects can be advertised without registering them first with the new

The clarification is likely to further dampen the already subdued market that has seen no real appreciation in value of property or sales growth during the last few years.

The (Regulation and Development) Act was passed last year to regulate the sector, eliminate fly-by- night operators and protect buyers' interest. The Act came into force from May this year.

Realtors' body had submitted a representation to Ministry of Housing and Urban Poverty Alleviation seeking clarity on advertisement and sale of the ongoing projects amid conflicting reports and interpretation on the issue.

"Section 3 (1) of the Act prohibits advertisements for all projects (ongoing/future) without registration with the This provision has come into effect from May 1, 2017," the ministry said, while responding to the NAREDCO's letter.

President said the prohibition on advertisements and sale in the ongoing projects will hit the

As per the Act, Section 3 (1) specifies that "no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building...,in any project or part of it, in any planning area, without registering the project with the Regulatory Authority established under this Act."

For the ongoing projects, this section provides that the promoter should make an application to the authority for registration of the project within a period of three months from the date of commencement of this Act.

Ending the 9-year long wait, the law, which will regulate the realty sector involving over 76,000 companies, came into force on May 1, 2017.

With all the 92 Sections of the Act coming into effect, developers are required to get all the ongoing projects that have not received the completion certificate and the new projects registered with regulatory authorities within three months, ending July.

This would enable the buyers to enforce their rights and seek redressal of grievances after such registration.

First Published: Thu, June 22 2017. 00:37 IST
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