Introduction
The Real Estate (Regulation and Development) Act, 2016 (“RERA”) was enacted to bring transparency, accountability, and discipline to India’s real estate sector. Among its various compliance requirements, RERA imposes strict norms on how real estate projects are advertised and marketed. These guidelines are designed to ensure that advertisements reflect factual, verifiable information and do not mislead prospective buyers.
Non-compliance with RERA advertisement rules can lead to monetary penalties, directions to modify or withdraw the advertisement, and in certain cases, criminal liability. This article examines the scope, requirements, and enforcement of advertisement guidelines under RERA, with reference to relevant case laws and complementary regulations.
Legislative Framework for Real Estate Advertisements
1. Section 11(2) of RERA
Section 11(2) mandates that the promoter must ensure that all advertisements or prospectuses are consistent with the sanctioned plans, layout plans, and specifications approved by the competent authority. Any misleading statement entitles the allottee to withdraw from the project and claim a full refund with interest.
2. Section 3 – Prohibition Before Registration
A promoter cannot advertise, market, book, or offer for sale any plot, apartment, or building without registering the project with the concerned State RERA. This provision effectively prohibits pre-registration marketing campaigns, regardless of whether bookings are being taken.
3. Rule-making by States
Each State has issued its own rules under RERA, often elaborating on:
- The form and content of advertisements.
- Requirements for mentioning the project registration number.
- Disclosures such as carpet area, project completion timelines, and promoter details.
For example, the Maharashtra Real Estate Regulatory Authority (MahaRERA) mandates that the RERA registration number, website address of the authority, and other statutory disclosures must appear prominently in all advertisements.
Core Requirements for RERA-Compliant Advertisements
1. Mandatory Disclosures
A RERA-compliant advertisement must generally include:
- Project registration number and validity period.
- Website of the State RERA where project details are available.
- Exact carpet area (as defined under Section 2(k) of RERA).
- Name and contact details of the promoter.
- Expected completion date as per registered declaration.
2. Accuracy of Information
All information in the advertisement must be consistent with the sanctioned plans, layout, and project specifications filed with RERA. Statements such as “sea-facing” or “ready possession” must be factually verifiable.
3. Prohibition on Misleading Content
The advertisement cannot:
- Offer guarantees that are not supported by the registered documents.
- Use ambiguous terms like “luxury” without objective criteria.
- Display images or amenities not part of the sanctioned plan.
4. Digital and Print Media
The rules apply equally to digital platforms, social media campaigns, hoardings, brochures, and other print or electronic formats.
Enforcement and Penalties
1. Section 12 – False or Misleading Advertisement
If a promoter publishes a false or misleading advertisement and a person sustains loss or damage due to reliance on it, the promoter is liable to compensate the affected person. The allottee also has the right to withdraw from the project and claim a refund.
2. Section 61 – Penalty for Contravention
Violation of provisions (including Section 3) may attract a penalty of up to 5% of the estimated cost of the project.
3. Case Law Illustrations
- Ramesh Chander Sharma v. Haryana RERA (2021) – The Haryana RERA held that promotional material showing facilities not included in the approved plan constituted a misleading advertisement, and directed the promoter to withdraw such materials.
- MahaRERA Order in Ashok Developers (2019) – The authority penalised the promoter for advertising an unregistered project, holding that “expression of interest” campaigns amounted to marketing under Section 3.
- Consumer Education and Research Society v. DLF Universal Ltd. (NCDRC, 2016) – Though pre-RERA, the National Consumer Disputes Redressal Commission’s reasoning on misleading brochures remains relevant, reinforcing that inaccurate depictions constitute unfair trade practice.
Interaction with Other Laws
1. Consumer Protection Act, 2019
Misleading advertisements by real estate promoters may also attract action under the Consumer Protection Act, which defines “misleading advertisement” in Section 2(28) and prescribes penalties, including imprisonment, for manufacturers or service providers.
2. ASCI Guidelines
The Advertising Standards Council of India (ASCI) has specific codes for real estate advertising, requiring disclaimers, avoidance of unsubstantiated claims, and clarity about images being actual or artistic impressions. While ASCI is self-regulatory, its guidelines often inform RERA’s interpretation of misleading advertisements.
3. Information Technology Act, 2000
Digital advertisements disseminated online must comply with IT Act provisions relating to publication of information, especially when using intermediary platforms.
Practical Compliance Steps for Promoters
Promoters can adopt the following steps to ensure compliance:
- Verify all claims in advertisements against approved project documents before publication.
- Include mandatory details such as RERA registration number and completion date.
- Avoid vague terminology unless it can be objectively substantiated.
- Maintain an archive of all promotional material for at least five years for audit or legal purposes.
- Train marketing teams on RERA requirements and integrate compliance checks into campaign approvals.
Emerging Trends and State-level Variations
While the core principles are uniform under RERA, there are differences in enforcement across States:
- MahaRERA actively monitors print media and online portals, issuing suo motu notices for non-compliance.
- Karnataka RERA has clarified that even “coming soon” boards constitute advertisement and require prior registration.
- Delhi RERA has focused on ensuring the prominence of registration numbers in hoardings and digital banners.
- West Bengal / Kolkata (WBHIRA) – Under the West Bengal Real Estate (Regulation and Development) Rules, 2021, advertisements must clearly display the WBHIRA registration number, the website address of WBHIRA, and details of the approved project. Pre-registration advertising is strictly prohibited. WBHIRA has also stressed that content must be “materially factual,” and artistic impressions must be labelled accordingly. In 2022, the authority issued notices to several Kolkata-based developers for “pre-launch” newspaper ads before registration, directing withdrawal of the ads and imposing penalties.
This variation means promoters operating in multiple States must be aware of specific local requirements beyond the central Act.
Conclusion
Advertisement guidelines under RERA are a critical compliance area for real estate promoters. They aim to protect homebuyers from deceptive marketing practices by mandating full, truthful, and verifiable disclosures. Given the interplay with the Consumer Protection Act and ASCI codes, promoters must adopt a careful, documented approach to advertising. For buyers, these rules provide a reliable framework to assess claims and take action in case of misrepresentation.
References
- The Real Estate (Regulation and Development) Act, 2016 – Sections 3, 11, 12, 61.
- Maharashtra Real Estate Regulatory Authority (MahaRERA) General Advertisement Guidelines, 2017.
- West Bengal Real Estate (Regulation and Development) Rules, 2021 – Rule 16.
- Consumer Protection Act, 2019 – Section 2(28), Chapter VII.
- Advertising Standards Council of India – Code for Self-Regulation in Advertising, Real Estate Guidelines.
- Ramesh Chander Sharma v. Haryana RERA, 2021.
- MahaRERA Order in Ashok Developers, Complaint No. CC006000000100083, 2019.
- Consumer Education and Research Society v. DLF Universal Ltd., NCDRC, 2016.
