Maharashtra: Over 1000 real estate ads in state found to be misleading

The Forum for Peoplersquos Collective Efforts FPCE a consumer rights body has raised serious concerns about misleading real estate advertisements in MaharashtraIn a letter to the Secretary of Consumer Affairs Union Government the forum criticised MahaRERArsquosdetterent action against errant developers who deceive flat buyers through false advertisingThe forum relied on the Advertising Standards Council of India ASCIrsquos halfyearly report AprilndashSeptember 2024 to highlight the issue Of 2115 real estate ads screened in Maharashtra 1027 were found misleading and in violation of the RERA Act MahaRERA signed an MoU with ASCI in February 2024 to monitor misleading ads and protect flat buyers but its lack of substantial penalties has raised concernsASCIrsquos report stated ldquoFrom 2115 real estate ads screened 1027 were flagged for potential violations of MahaRERA regulations While 59 per cent of advertisers complied by modifying or withdrawing ads 628 developers were penalised with fines totalling Rs 8890 lakhrdquolsquoReprimand errant buildersrsquoAdvocate Anil Dsouza hon secretary MahaRERA Bar AssociationDespite clear guidelines promoters continue to flout rules on advertising and marketing leading to confusion and misrepresentationAdvocate Anil Dsouza Hon Secretary of the MahaRERA Bar Association said ldquoASCI and MahaRERA are doing their best but stricter penalties are needed for misleading advertisementsrdquo The first suomotu case by MahaRERA involved an unregistered agent from Chembur advertising unregistered projectsldquoHonest advertisements reduce litigation and foster trust between promoters and buyers MahaRERA and ASCI must be more vigilant to ensure clean practicesrdquo said DsouzaHe also called for tougher interactions with CREDAIMCHI NAREDCO and industry SROs to ensure compliance and establish stricter regulations stressing ldquoHonest advertisements are not optional but an obligationrdquolsquoMeagre fines exploitedrsquoAbhay Upadhyay president FPCEAbhay Upadhyay president FPCE said ldquoASCI has reviewed advertisements based only on MahaRERArsquos limited instructions However from a consumerrsquos perspective these ads often mislead Images rarely match the actual project QR codes often fail to provide accurate details of facilities and amenities and therersquos typically a disclaimer allowing management to change project details violating RERA Act that prohibit such changes after sales beginldquoBuilders exploit this situation as penalties are negligiblerdquo said Upadhyay ldquoWith a fine of R1500020000 on average MahaRERA collected R8890 lakh from 628 developers averaging R14156 per project they trap hundreds of buyers with misleading ads Homebuyers suffer while MahaRERA indirectly supports this by imposing token penaltiesrdquo Upadhyay confirmed he received no response to his concerns1027Total no of ads found to be misleadinglsquoMaking a mockeryrsquoRamesh Prabhu founder chairman MahaSEWARamesh Prabhu founder chairman of Maharashtra Societies Welfare Association MahaSEWA said ldquoOnce ASCI being a regulator refers a particular real estate advertisement with discrepancies to MahaRERA it becomes MahaRERArsquos responsibility to issue showcause notices to such promoters under Section 12 of the Real Estate Regulation and Development Act 2016 MahaRERA should initiate legal proceedings against promoters engaging in unfair trade practices and consider cancelling project registrations instead of merely imposing negligible fines of R14000 to R15000 which makes a mockery of customer protectionrdquo He further suggested MahaRERA should publish details of such misleading advertisements on its official website to help flat buyers make informed decisionsHighlights of ASCI Report AprSept 20244016 complaints addressed3031 ads reviewedfor potential code violations9837 required modifications5337 withdrawnmodified without contest9037 cases flagged via proactive monitoring18 days average case resolution time2087 digital media ads violated laws1027 breached MahaRERA Act890 promoted illegal bettinggambling156 violated Drugs amp Magic Remedies Act