1. Advertisement Rules under Real Estate (Regulation and Development) Act, 2016

A promoter/builder cannot advertise, market, book, sell, or invite persons to purchase any apartment, plot, or building in a real estate project without obtaining RERA registration where registration is mandatory.

All advertisements must contain:

• RERA Registration Number
• Correct and true project information
• Approved plans/specifications only

False or misleading advertisements are prohibited under Section 12 of RERA.

Penalty

• Non-registration of project before advertisement:
  Penalty up to 10% of estimated project cost under Section 59.
• False or misleading or wrong advertisement:
  Penalty up to 5% of estimated project cost under Section 61, along with compensation liability to buyers.

2. Deposit in RERA Designated Account & Agreement to Sale before Acceptance of More Than 10%

(A) Deposit in RERA Designated Bank Account

As per Section 4(2)(l)(D), promoter is required to deposit 70% of the amounts realized from allottees into a separate designated bank account to be used only for land and construction cost of that specific project.

Withdrawal is permitted only in proportion to project completion and supported by certificates from Engineer, Architect, and Chartered Accountant.

Penalty

Improper utilization/diversion of funds may attract:

• Penalty under Section 61 up to 5% of project cost,

(B) Agreement to Sale before Acceptance of Amount Exceeding 10%

As per Section 13 of RERA, promoter cannot accept more than 10% of the cost of apartment/plot/building as advance or application money without:

• Executing Agreement for Sale, and
• Registering the Agreement where applicable.

This provision protects buyers and ensures transparency regarding possession date, payment terms, specifications, and rights of parties.

Penalty

Acceptance of amount exceeding 10% without Agreement for Sale may attract:

• Penalty under Section 61 up to 5% of project cost,
• Refund and compensation claims by allottees,
• Regulatory action by RERA Authority.