Section 12 of RERA : Section 12: Obligations Of Promoter Regarding Veracity Of The Advertisement Or Prospectus

Explanation using Example

Imagine Sarah, who is looking to buy a new apartment. She visits a real estate project after seeing an advertisement that promises a state-of-the-art gymnasium within the complex. Based on this information, Sarah decides to make an advance payment to book an apartment. However, upon moving in, she discovers that there is no gymnasium and that the amenity was falsely advertised. According to Section 12 of The Real Estate (Regulation and Development) Act, 2016, Sarah is entitled to compensation for the loss and damage suffered due to the incorrect statement made by the promoter.

If Sarah decides that the absence of the gymnasium is a deal-breaker and she no longer wishes to live in the complex, she has the right to withdraw from the purchase entirely. In this case, the promoter is obliged to return her entire investment with prescribed interest and compensate her as per the provisions of the Act.