No ads of realty projects without registering with regulator: Govt
Clearing the air on real estate developers issuing advertisements, the government has said no ongoing or future projects can be advertised without registering them first with the new regulator.
The clarification is likely to further dampen the already subdued real estate market that has seen no real appreciation in value of property or sales growth during the last few years.
The Real Estate (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 NAREDCO 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 real estate regulator. This provision has come into effect from May 1, 2017," the ministry said, while responding to the NAREDCO's letter.
NAREDCO President Parveen Jain said the prohibition on advertisements and sale in the ongoing projects will hit the industry.
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 real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act."