Can a Promoter advertise or sell an apartment without or prior registration under RERA, 2016?

Any person, who is covered under the clauses (i) to (vi) of 2(zk) of RERA 2016, is called as Promoter and such person needs to register his real estate project under RERA.

Every Promoter shall register his real estate project, if –

1) The real estate project is located in the planning area and

2) The Real estate project is not exempted under section 3(2) of RERA 2016.

The intention behind inserting this provision of registration of a real estate project with the Regulatory Authority prior to sell, is that, the proposed buyer should get all the authentic and formal information related to the real estate project and on the basis of such information, such buyer will be in position to take a call on whether to buy or not any unit in the real estate project.

As per Section 3(1) of RERA 2016, every promoter has to get his real estate project registered under RERA, before he shall—

  • Advertise
  • Market
  •  Book
  •  Sell or offer for sale
  •  Invite persons to purchase,

– In any manner

– Any plot, apartment or building, which is a part of any real estate project, in any planning area.

A promoter cannot advertise or sell an apartment of a real estate project or carry out any of the above mentioned activities, without or not having prior registration of real estate project with the concerned Regulatory Authority under RERA, if such real estate project is located in a planning area.

Some instances has been noticed, where the Regulatory Authority has taken actions against the promoters who has marketed their real estate projects prior to registration of such real estate projects with the Regulatory Authority.

MahaRERA has imposed fine on developer named Godrej Properties, for advertising prior to registration. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has imposed a fine of Rs.30 lacs on a promoter of real estate project, odrej Properties, for advertising a project before its registration with the MahaRERA.

The Authority summoned Godrej properties for putting up 30 hoardings at various locations in Mumbai and Thane for their new real estate project and contravened the provisions of section 3(1) of RERA. Godrej Properties argued that these hoardings displayed a disclaimer that the information on these hoardings is neither an advertisement nor an offer for sale, within the ambit of RERA. However the Regulatory Authority has denied this argument of promoter and imposed a fine on him for such promotional activities prior to registration of such real estate project.


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Qualification: CA in Practice
Company: Pravin Bangar And Associates,Chartered Accountants
Location: pune, Maharashtra, India
Member Since: 16 Feb 2019 | Total Posts: 5
CA Pravin Bangar is practicing Chartered Accountant from Pune. View Full Profile

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June 2021