Appeal No. 60 of 2021, M/s. Casa Grand Builder Private Limited v. Tamilnadu Real Estate Regulatory Authority
The Tamil Nadu Real Estate Appellate Tribunal, covering Tamil Nadu, Puducherry and the Andaman and Nicobar Islands, issued its decision in Appeal No. 60 of 2021 on 27 October 2021. It dismissed the appeal by M/s. Casa Grand Builder Private Limited and modified the Tamilnadu Real Estate Regulatory Authority administrative order in Proc.No.TNRERA/6674/2020 dated 5 January 2021 by adding a further penalty of Rs.10,00,000, bringing the total penalty to Rs.20,00,000 for advertising projects without their registration numbers.
What the case was about
M/s. Casa Grand Builder Private Limited challenged the Tamilnadu Real Estate Regulatory Authority administrative order in Proc.No.TNRERA/6674/2020 dated 5 January 2021. The authority had imposed a penalty of Rs.10,00,000 after the promoter advertised flats in several locations without mentioning the Tamilnadu Real Estate Regulatory Authority registration number for each project.
The advertisement appeared in The Hindu Property Plus on 14 November 2020. The promoter stated that space and font constraints prevented inclusion of all registration numbers, although the advertisement described all projects as registered.
Tribunal findings
The Tamil Nadu Real Estate Appellate Tribunal rejected the promoter's explanation. Its key findings were:
- An advertisement or prospectus published by a promoter must prominently mention the authority's website address and include the project registration number.
- Describing projects generally as registered does not replace the requirement to provide their registration numbers.
- Space or font constraints do not turn the failure into an acceptable omission.
- Delegating advertising work to an outside agency does not remove the promoter's responsibility.
- The Tamilnadu Real Estate Regulatory Authority had issued a show cause notice, considered the promoter's reply and followed the principles of natural justice.
- The promoter had previously faced a penalty in C.No.334/2019 dated 10 February 2020, which the Tribunal had confirmed in A.No.45 of 2020.
The Tribunal also dismissed M.A.No.110/2021, the promoter's application for reception of documents.
Result and practical effect
The Tamil Nadu Real Estate Appellate Tribunal dismissed Appeal No. 60 of 2021 and increased the penalty under Section 61 of the Real Estate (Regulations and Development) Act, 2016. It added Rs.10,00,000 to the Rs.10,00,000 already imposed, making the total penalty Rs.20,00,000.
M/s. Casa Grand Builder Private Limited was directed to deposit the total penalty, after deducting any amount already deposited, with the Tamilnadu Real Estate Regulatory Authority within one month from receipt of the decision.
For buyers, the decision confirms that project advertisements should provide registration details rather than only making a general claim that projects are registered. For promoters and advertising professionals, it confirms that responsibility for compliant advertising remains with the promoter even when an outside agency prepares the advertisement.
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Common questions
Can a promoter simply state that all advertised projects are RERA registered?
No. The Tamil Nadu Real Estate Appellate Tribunal found that a general statement did not replace the requirement to include the registration number for the projects in the advertisement.
Are space or font limits an acceptable reason for leaving out registration numbers?
No. The Tribunal rejected space and font constraints as a sufficient explanation for omitting the registration numbers.
Is an advertising agency responsible instead of the promoter?
No. The Tribunal found that delegating advertising work to a third party did not remove the promoter's responsibility under the Real Estate (Regulations and Development) Act, 2016.
What penalty did M/s. Casa Grand Builder Private Limited have to pay?
The Tribunal added a further penalty of Rs.10,00,000 to the existing Rs.10,00,000 penalty, making the total Rs.20,00,000. Any amount already deposited could be deducted.
