Introduction: On July 25, 2023, the Maharashtra Real Estate Regulatory Authority (MahaRERA) released Order No. 46A/2023, requiring all promoters of real estate projects to prominently display Quick Response (QR) Codes in their advertisements. This move aims to assist home buyers and allottees in obtaining project-related information easily. Failure to comply with this directive will result in penalties for the promoters.
Analysis: The Order highlights the importance of adhering to the Real Estate (Regulation and Development) Act, 2016 (the Act) and the Maharashtra Real Estate Regulatory Authority (General) Regulations, 2017. Section 3(1) of the Act mandates that promoters must register their real estate projects with MahaRERA before advertising, marketing, selling, or inviting purchases in any manner. Additionally, Section 11(2) stipulates that all promotional materials must prominently display the Authority’s website address and the project’s registration number.
MahaRERA introduced QR Codes for registered real estate projects to facilitate easy access to information for prospective buyers and allottees. The Order emphasizes that from 1st August 2023, all promotions and advertisements must include the QR Code in the manner and location specified in the previous MahaRERA Order (No. 46/2023 dated 29.05.2023).
Non-compliance with this directive will be treated as a violation of the MahaRERA Order, and promoters will face penalties ranging from a minimum of Rs. 10,000 to a maximum of Rs. 50,000 under Section 63 of the Act. In case of failure to rectify the violation within ten days of penalty imposition, further action will be taken against the promoters as deemed appropriate under relevant provisions of the Act.
Conclusion: MahaRERA’s Order No. 46A/2023 aims to ensure greater transparency and accessibility in the real estate sector by making QR Codes mandatory in promotions and advertisements of registered projects. By implementing QR Codes, homebuyers and allottees can easily access vital information about real estate projects. Promoters are required to comply with this directive from 1st August 2023 onwards to avoid penalties.
MAHARASHTRA REAL ESTATE REGULATORY AUTHORITY
Order No. 46A/2023
No. MahaRERA/Secy/ File No. 27/1040/2023
Subject: In the matter of non-display of Quick Response (QR) Code in promotions / advertisement of real estate projects registered with MahaRERA.
Whereas, Government of India has enacted the Real Estate (Regulation and Development) Act, 2016 (the Act) and all sections of the Act have come into force with effect from 01.05.2017.
And whereas, the Government of Maharashtra vide Notification No. 23 dated 08.03.2017 has established the Maharashtra Real Estate Regulatory Authority, hereinafter referred to as “MahaRERA” or as “the Authority”.
And whereas, the Government of Maharashtra has notified the Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration. of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 (the Rules) for carrying out the provisions of the Act.
And whereas, the Authority has notified the Maharashtra Real Estate Regulatory Authority (General) Regulations, 2017 (Regulations) to carry out the purposes of the Act.
And whereas, the Authority under Section 37 of the Act, and Regulation 38 of the Regulations is vested with the powers to issue directions to promoters, real estate agents and allottees from time to time as it may consider necessary.
And whereas. the Chairperson MahaRERA is vested with the powers of general superintendence and directions in the conduct of the affairs of MahaRERA under Section 25 of the Act.
And whereas, Section 3 (1) of the Act, mandates that no promoter shall advertise, market, book, sell or offer for sate, or invite person to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it in any planning area without registering the real estate project with MahaRERA.
And whereas, Section 11 (2) of the Act, mandates that the advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the Authority and include the registration number obtained from the Authority and such other matters incidental thereto.
And whereas, by MahaRERA Order No. 46/2023 dated 29.05.2023 bearing No. MahaRERA/Secv/894/2023, all concerned were informed about introduction by MahaRERA of Quick Response (QR) Code for each registered real estate project so as to assist home buyers / allottees to get real estate project related information easily.
And whereas, by the above-referred MahaRERA Order, directions were issued that after 01.08.2023 on each and every real estate project promotion / advertisement published, promoters shall prominently display the QR Code in a manner and at a place as more specifically mentioned in the said MahaRERA Order.
And whereas, the above-referred MahaRERA Order had specifically enumerated the mediums where the promotions / advertisement are displayed by promoters shall have the QR Code.
And whereas, one of the functions of the Authority under Section 34(g) is to ensure compliance of the Regulations or Orders or Directions made in exercise of the powers of the Authority tinder the Act.
And whereas, Section 63 of the Act, empowers the Authority to impose penalty on any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority on a day-to-day basis during which the default continues.
In view of the above, the following further directions are issued:
a) With effect from 01.08.2023, promoter shall prominently display the QR Code on each and every real estate project promotion / advertisement published in the mediums, in the manner and at the place as more specifically mentioned in MahaRERA Order No. 46/2023 dated 29.05.2023.
b) Failure to comply with (a) above shall be construed as violation of the directions issued in the above-referred MahaRERA Order and penalty which may extend upto 50,000/- subject however to a minimum penalty which shall not be less than Rs. 10,000/- under Section 63 of the Act shall be imposed upon promoters for each such violation.
c) Upon imposition of the penalty if the promoter fails/ neglects to rectify and remedy the violation / contravention within 10 days shall be construed as a continuous violation of the directions issued in the above-referred MahaRERA Order and appropriate action as deemed fit shall be taken against such promoters under the relevant provisions of the Act..
This Order shall come into force with effect from 01.08.2023.
(As approved by the Authority)