Maharashtra: Real Estate Developers Face Penalties for Misleading Ads
According to ASCI, the real estate sector emerged as the most violative, accounting for 34% of cases investigated.
Real EstateMisleading AdvertisementsAsciMahareraConsumer ProtectionReal Estate MaharashtraNov 26, 2024
Of the ads investigated, 2087 were found to be in violation of the law. Of these, 1027 were reported to the Maharashtra Real Estate Regulatory Authority (MahaRERA) under a Memorandum of Understanding (MoU) between ASCI and MahaRERA. According to ASCI, the real estate sector emerged as the most violative, accounting for 34% of the cases investigated.
Manisha Kapoor, CEO of ASCI, remarked, 'Our work in partnership with government regulators in sectors such as betting and realty is creating an impact. While there is a long way to go, such partnerships are able to create an impetus for better oversight. With constant progress in reducing our turn-around time for complaint management, ASCI’s deep experience and tech-supported efforts are evolving to provide better protection to the consumers of India.'
ASCI has been particularly vigilant about the real estate sector, which has seen a surge in misleading advertisements. These ads often promise unrealistic benefits, such as guaranteed returns on investment, which can mislead potential buyers. The council’s efforts to monitor and regulate these advertisements are crucial for maintaining transparency and fairness in the market.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is a regulatory body established to protect the interests of homebuyers and promote transparency in the real estate sector. The MoU between ASCI and MahaRERA aims to enhance cooperation and coordination in enforcing regulations and ensuring compliance among developers.
Manisha Kapoor emphasized the importance of these partnerships, stating, 'By working together, we can create a more robust system that safeguards consumers from fraudulent practices. The synergies between our organizations enable us to address issues more effectively and promptly, ultimately leading to a more trustworthy and reliable market for all stakeholders.'
The report highlights the growing need for stringent regulations and continuous monitoring in the real estate sector. With the increasing prevalence of digital advertising, the challenge of identifying and addressing misleading ads has become more complex. However, the collaboration between ASCI and MahaRERA demonstrates a proactive approach to tackling these issues and ensuring consumer protection.
In conclusion, the efforts of ASCI and MahaRERA are crucial in maintaining the integrity of the real estate market in Maharashtra. Their continued vigilance and collaboration will play a pivotal role in creating a more transparent and trustworthy environment for both buyers and developers.
Frequently Asked Questions
What is the Advertising Standards Council of India (ASCI)?
ASCI is a self-regulatory organization in India that sets and enforces standards for advertising content to ensure it is truthful, legal, and ethical.
How many complaints did ASCI review in the first half of 2024-25?
ASCI reviewed 4016 complaints between April and September 2024.
What percentage of the complaints needed modification?
98% of the complaints needed some modification.
Which sector emerged as the most violative according to ASCI?
The real estate sector emerged as the most violative, accounting for 34% of the cases investigated.
What is the role of MahaRERA in this context?
MahaRERA, the Maharashtra Real Estate Regulatory Authority, is a regulatory body that works to protect the interests of homebuyers and promote transparency in the real estate sector. It collaborates with ASCI to enforce regulations and ensure compliance among developers.
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