Short Answer

Yes, false advertising fines imposed by RERA are recoverable by the society as compensation.

Detailed Explanation

As per Section 12 of the Gujarat RERA Act, fines imposed by RERA for false advertising or any other violations are meant to be recovered and utilized for the benefit of the aggrieved parties. This means that if a builder is fined by RERA for false advertising, the society can claim this amount as compensation for any damages or losses suffered due to the misleading advertisements. In practice, the society can file a complaint with RERA highlighting the false advertising and the resulting harm caused to the society or its members. RERA will then investigate the matter and impose fines accordingly, which can be claimed by the society.

For example, if a builder in Gujarat advertises a project with false promises of amenities or completion timelines, leading to financial losses for the society members, RERA can penalize the builder with fines. These fines can then be recovered by the society to compensate for the losses incurred. The society must provide evidence of the false advertising and the impact it had on the society to support their claim for compensation.

Another scenario could involve a builder misrepresenting the status of regulatory approvals for a project, causing delays and financial strain on the society. In such a case, RERA may penalize the builder for false advertising, and the fines imposed can be recovered by the society to offset the damages suffered.

In practical terms, the process of recovering false advertising fines as compensation involves lodging a formal complaint with RERA, presenting evidence of the misleading advertisements, participating in any hearings or investigations conducted by RERA, and ultimately receiving the sanctioned fines for the benefit of the society.

References

• Section 12 of the Gujarat RERA Act

• Gujarat RERA Act and Rules: https://gujrera.gujarat.gov.in/