A number of real estate firms and brokers/agents in the State have been accused of marketing projects ignoring the stipulation that real estate projects and agents should be registered with the Kerala Real Estate Regulatory Authority (K-RERA).
K-RERA has begun issuing showcause notices to these firms and brokers who, sources said, were marketing projects using the deadline extension for registering ongoing real estate projects in view of the COVID-19 situation as a pretext.
''This authority has been receiving many complaints, both formal and informal, pointing out the marketing activities done by some promoters in connection with their projects without even applying for registration,” K-RERA said. Such activities were liable to attract penal action under various provisions of the Real Estate (Regulation and Development) Act passed by the Parliament in 2016, the authority said.
Section 3(1) of the Act states; “No promoter shall advertise, market, book, sell or offer for sale, or invite persons 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 the Real Estate Regulatory Authority established under this Act.”
Further, the Act requires promoters to prominently mention the RERA website and registration number in advertisements and the prospectus. However, many promoters have been found to be ignoring this requirement. “Likewise, in the case of projects that are not bound to be registered, the promoters shall have to indicate/write the same clearly in all the advertisements/prospectus,” the authority noted.
Given the COVID-19 scenario in the State, K-RERA had extended the deadline for registering ongoing projects from August 30 to September 30 this year. “However, it is to be noted seriously that the above-mentioned extension period is neither meant for any lawbreakers nor a blanket approval for violating the law,” the authority noted.
K-RERA has also issued notices to a number of agents/ brokers/ middlemen who too have been found to be engaged in real estate-related activities without the required RERA registration. They are liable to be punished under Section 62 and 65 of the Act.
