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RERA Gurugram Slaps Rs 50 Lakh Penalty on Countrywide Promoters for Publishing of Misleading Advertisement

Gurugram, April 23, 2024: The real estate regulatory authority (RERA), Gurugram, has imposed a penalty of Rs 50 Lakh on Countrywide Promoters Private Limited, a city based real estate promoter, for publishing a misleading advertisement in an English daily about its real estate project Green Oaks.

The Authority took strong note of the advertisement published on March 2 and sent a show cause notice to the promoter asking for the reply.

The Authority observed that despite mandatory provisions under Section 11(2) and 13(1) of the Real Estate (Regulation and Development) Act 2016 the promoter did not describe the details in a proper manner in the advertisement, which is a punishable offence under the Section 61 of the Act.

“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. Therefore, the Authority hereby imposes a penalty amounting to Rs 50 lakh under Section 61 of the Act 2016,” said the order.

A bare perusal of the advertisement of two full-coloured shows one full-page contains a photo of a garden/park (Garden of Dreams) and the other page displays a picture of a club, which is not part of the project.

“While, rest of the advertisement shows facilities available which clearly are not part of the project like squash court, state of the art club house, covered pool and spa, outdoor library, rejuvenating sculptural rocks, coffee lounge counter etc. It is all misleading,” order said.

Countrywide Promoters Private Limited is developing an affordable plotted colony Green Oaks at Sector 70-A, Gurugram, under Deen Dayal Jan Awas Yojna Affordable Plotted Housing Policy 2016 after it obtained RERA registration in 2021.

“It is abundantly clear that the promoter has issued a misleading advertisement for a DDJAY plotted colony to show alluring images to make the prospective investor believe that the project comprises club house and such facilities, which are not existing in the project. This amounts to a violation of Section 7(1)(A)(i). No details, information or visuals of the actual layout or site plan of the project have been provided to enable the prospective allottee to decide upon investing in the project,” said the order.

“Further the promoter has failed to get the registration details amended as per the revised layout in the record of the Authority, which shows the layout plan as approved in 2021. It is also noted that the project was launched in 2021 and the layout plan was revised in 2023. From the Quarterly Progress Report submitted by the promoter prior to the revision of the layout plan it is clear that the third party rights were created before the revised layout plan was approved by DTCP. Under the provisions of Section 14(2)(ii), the promoter is obligated to obtain the consent of at least 2/3 of the allottees before making such changes,” order said.

Being custodian of the Real estate (Regulation and Development) Act 2016, the Authority ensures that every real estate promoter must put correct and accurate information in the public domain about any real estate project.