The Maharashtra Real Estate Regulatory Authority (MahaRERA) has once again emphasised the importance of transparency in real estate advertising by penalising a Pune-based developer for failing to comply with mandatory advertisement disclosure norms.
In a significant ruling, MahaRERA held that the size of an advertisement or the fact that it was published free of cost does not exempt a promoter from complying with RERA’s advertising guidelines. The Authority imposed a ₹15,000 penalty after finding that the developer had failed to display the MahaRERA registration details in the prescribed manner.
The decision highlights MahaRERA’s continued efforts to ensure that homebuyers receive complete and accurate project information before making investment decisions.
Background of the Case
The proceedings were initiated suo motu by MahaRERA after the Authority noticed that an advertisement published by the developer did not comply with the advertisement guidelines issued in April 2025.
Although the advertisement contained the MahaRERA registration number, website address, and QR code, the Authority found that the registration details were displayed in a font size smaller than the project’s contact information.
According to MahaRERA, this violated its mandatory advertising directions.
MahaRERA Advertisement Rules
In April 2025, MahaRERA introduced comprehensive advertisement guidelines aimed at improving transparency in the real estate sector.
Under these rules, every advertisement issued by a developer or real estate agent must prominently display:
- MahaRERA Registration Number
- Official MahaRERA Website Address
- QR Code linking directly to the project’s MahaRERA webpage
The Authority also prescribed specific requirements regarding font size.
Mandatory Font Size Requirement
MahaRERA clearly directed that:
- The MahaRERA Registration Number and website address must appear in a font equal to or larger than the font used for:
- Project contact details
- Office address
If different font sizes are used for contact details, then the registration number must be displayed in a font at least equal to the largest font used.
The objective is to ensure that buyers can easily verify project registration before making any investment.
Why MahaRERA Issued the New Rules
Before issuing the April 2025 directions, MahaRERA observed that many advertisements suffered from several deficiencies, including:
- Very small registration numbers
- Poor colour contrast
- Invisible QR codes
- Incomplete disclosures
As a result, many homebuyers were unable to verify project registration details.
To address these issues, MahaRERA made the disclosure requirements mandatory and warned that violations could attract penalties of up to ₹50,000.
Developer’s Defence
The developer argued that it had already provided all mandatory information to its professional advertising agency, including:
- MahaRERA Registration Number
- QR Code
- Statutory disclosures
The developer further submitted that:
- The larger advertisement published as part of the same campaign contained all required disclosures.
- The advertisement under dispute was only a small classified advertisement.
- It had been published free of cost under a promotional scheme offered by the newspaper.
- Any omission or formatting error occurred due to the advertising agency and was entirely unintentional.
Based on these submissions, the developer requested MahaRERA to drop the proceedings.
MahaRERA Rejected the Defence
The Authority rejected all the arguments raised by the promoter.
MahaRERA observed that although the required information was technically included, the font size of the MahaRERA registration number and website address was smaller than the project’s contact details, directly violating the Authority’s April 2025 directions.
The Authority further ruled that whether an advertisement is:
- Paid,
- Complimentary,
- Promotional, or
- Published free of cost,
the promoter remains fully responsible for ensuring compliance with the RERA advertisement guidelines.
According to MahaRERA, developers cannot escape liability by blaming advertising agencies or relying on the nature of the advertisement.
Responsibility Always Lies with the Promoter
A key observation made by MahaRERA was that the legal responsibility for advertisement compliance always rests with the promoter.
The Authority categorically stated that:
- Developers remain accountable for every advertisement published in relation to their project.
- Responsibility cannot be shifted to advertising agencies or media houses.
- Every advertisement must comply with the prescribed disclosure norms irrespective of its size or publication method.
This reinforces the principle that consumer protection obligations cannot be delegated.
Penalty Imposed
After finding the developer guilty of violating the Authority’s advertisement directions, MahaRERA imposed:
Penalty: ₹15,000
The penalty has been imposed under Section 63 of the Real Estate (Regulation and Development) Act, 2016, which empowers the Authority to penalise promoters for non-compliance with its directions.
Time Given for Payment
MahaRERA directed the developer to deposit the penalty within 15 days.
The Authority also warned that:
- Failure to pay within the stipulated period would result in the penalty being doubled.
- However, the total penalty would remain subject to the statutory maximum limit of ₹50,000.
Why This Order is Important
The ruling sends an important message to developers and real estate agents regarding advertisement compliance.
Equal Importance to Every Advertisement
Whether an advertisement is:
- Full-page,
- Half-page,
- Digital,
- Newspaper classified,
- Free promotional advertisement,
the same legal disclosure requirements apply.
Transparency for Homebuyers
Proper display of the MahaRERA registration number enables buyers to:
- Verify project registration.
- Check project approvals.
- Review quarterly progress updates.
- Examine litigation history.
- Confirm completion timelines.
This significantly reduces the risk of misleading advertisements.
Developers Cannot Shift Liability
The order makes it clear that:
- Advertising agencies cannot be blamed for violations.
- Promoters remain legally responsible for every advertisement issued on their behalf.
Impact on the Real Estate Sector
The decision strengthens MahaRERA’s ongoing efforts to improve transparency and accountability in Maharashtra’s real estate market.
By enforcing uniform advertisement standards, the Authority aims to:
- Prevent misleading promotions.
- Improve consumer awareness.
- Encourage regulatory compliance.
- Promote responsible marketing practices.
Developers will now need to ensure that every advertisement—regardless of size or format—strictly follows MahaRERA’s disclosure norms.
Conclusion
The MahaRERA order serves as an important reminder that regulatory compliance applies to every form of real estate advertisement, irrespective of whether it is paid or published free of cost. By penalising the developer for failing to display the MahaRERA registration details in the prescribed font size, the Authority has reinforced that transparency is not optional but a statutory obligation under the RERA Act, 2016.
The ruling is expected to encourage stricter compliance with advertising regulations and provide greater confidence to homebuyers by ensuring that essential project information is prominently displayed in all promotional material.
