NEW DELHI: The Haryana government has made it mandatory for all private realtors to specify their project licence number, layout plans and the total number of apartments to be built in their advertisements, and any failure to do so could invite three-year prison term, a top state official said on Saturday. Haryana is the first state to introduce such a regulation.
Mushrooming building projects have prompted realtors to put catchy advertisements often overselling their projects and sometimes giving sketchy details. Analysts say this move will help bring transparency and provide home buyers clarity to help make a choice. The new rules for realty advertisements will come into effect immediately.
The state government's notification, issued by the town and country planning department (DTCP) on Friday, has punitive provision for non-compliance of these norms. "Offenders will face three years' imprisonment. Private developers have been putting out all kinds of advertisements, and in several cases buyers are clueless about whether these projects are approved by the government or not," said T C Gupta, director general of DTCP told TOI.
There have been complaints galore to DTCP from buyers since they are worried about the projects' authenticity. "People spend their lifetime savings to buy a house. We can't allow developers to loot people like this," Gupta said while interacting with realtors in Delhi.
Haryana industry secretary Y S Malik agreed with Gupta. He said he has been flooded with calls from harried buyers. "I have been receiving calls from several people, seeking projects' details. I would often take DTCP's help to gather the information," Malik said. Officials are concerned about growing complaints of fraud. "Several FIRs have been filed with Economic Offence Wing of police in Haryana and other states," DTCP's Gupta said. He cited several examples, where builders had sold apartments well above the licencing authority's sanctioned limit.
Gupta said he has asked district town planners (DTPs) across the state to file FIRs against violators. "I've asked each DTP to get an FIR lodged every week. There will be no compromise," he said. Realtors welcomed the move. "It's a historic move by any state. It will help clear the dirt. People will have greater faith in the industry," Navin Raheja, chairman of ASSOCHAM national council on real estate, said and urged other states to follow Haryana's example.
DTCP has cleared maximum files related to change of land use (CLU) – primarily for residential purpose – in the past year. "We're compiling a list of all such CLUs in the past two years. These will be posted on our website so that people get a fair idea of the projects before investing," Gupta added.
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