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Developers face penalties for non-compliant ads under Gujarat RERA rules

#Law & Policy#Residential#India#Gujarat
Last Updated : 5th Jun, 2025
Synopsis

Gujarat Real Estate Regulatory Authority (GujRERA) has launched a state-wide crackdown on developers violating RERA by promoting and accepting pre-registration bookings. The authority reiterated that projects must obtain RERA registration before any marketing or bookings, to protect buyers and ensure transparency. Alongside enforcement, GujRERA has introduced new marketing guidelines, effective mid-June. Developers must now display their Unique RERA registration number and a QR code from the RERA certificate on all promotional materials-including brochures, booking forms, print, digital, and video ads. In videos, the QR code must appear for at least three seconds; audio ads must clearly mention the RERA number. Non-compliance could result in penalties of up to 5% of the project's estimated construction cost under Section 63 of the Act. GujRERA's measures aim to foster trust, accountability, and stricter compliance across Gujarat's real estate sector.

Developers who violated the Real Estate (Regulation and Development) Act (RERA) by promoting and accepting pre-registration bookings for their projects have recently faced harsh penalties from the Gujarat Real Estate Regulatory Authority (GujRERA). This crackdown comes amid growing concerns about consumer protection and adherence to regulatory compliance within the real estate sector.


Earlier this week, GujRERA announced a comprehensive campaign across the state to identify and penalise developers indulging in such unlawful activities. The authority has clarified that all real estate projects must obtain RERA registration before marketing or accepting bookings, as mandated under the Act. This step aims to safeguard prospective buyers from potential fraud and ensure transparency in property transactions.

In addition to enforcement action, GujRERA has unveiled new marketing guidelines, effective from mid-June. Under these rules, developers are required to prominently feature their Unique RERA registration number alongside a QR code derived from their RERA certificate on all promotional materials. This includes brochures, booking forms, print and digital advertisements, as well as audio-visual content. Specifically, in video advertisements, the QR code must be visible on screen for a minimum of three seconds, and audio ads should clearly mention the RERA registration number.

Non-compliance with these marketing requirements may attract penalties under Section 63 of the RERA Act, which can be as high as 5% of the estimated construction cost of the project. GujRERA has emphasised that these measures are not merely procedural but fundamental to fostering trust and accountability in the real estate market.

Developers, real estate agents, and marketers have been advised to update all their promotional collateral in line with the new requirements ahead of the stipulated deadline to avoid any punitive action. GujRERA's proactive stance signals a significant move towards strengthening the regulatory framework, ensuring that real estate dealings in Gujarat are conducted in a fair, transparent, and lawful manner.

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