'Coming Soon' Posters Are Ads, Bihar RERA Slaps ₹1 Lakh Cost On Developer For Advertising Unregistered Project

The Bihar Real Estate Regulatory Authority has held that even “Coming Soon” banners, pamphlets and site notice boards amount to advertising under the Real Estate (Regulation and Development) Act. It, therefore imposed a Rs 1 lakh penalty on PRU-RLDA Projects Pvt. Ltd. for promoting an unregistered project. In an order dated December 24, 2025, Inquiry Commissioner Sanjaya Kumar Singh held, “The material placed on record, consisting of a pamphlet inviting bookings for the project and/ or displaying the upcoming project through a notice board kept at place for general public to see, unequivocally falls within the definition of 'advertisement' as provided under Section 2(b) of the Real Estate (Regulation and Development) Act, 2016.” He added that such conduct “strikes at the very object and purpose of the enactment of the Real Estate (Regulation and Development) Act, 2016.” The action followed a suo motu proceeding after Bihar RERA noticed an online advertisement for the project “One World, Brahmapura Railway Colony,” even though it had not been registered as required under Section 3 of the Act. The Authority also found pamphlets inviting bookings and notice boards displayed at the site and visible to the public. The promoter argued that there was no active marketing. It said the “Coming Soon” posters were only for identification, pointed to its long-term lease from the Rail Land Development Authority, and said its registration application was under process. It also said the online material had been removed and therefore sought waiver of penalty. Rejecting the explanation, the Authority held, “Thus, it is clear that by advertising and offering the project for sale prior to obtaining registration from the Authority, the promoter has contravened the express prohibition contained in Section 3(1) of the Act.” It further observed, “The sale of units to the public without obtaining mandatory registration reflects a deliberate attempt to circumvent the statutory regulatory framework and defeat the transparency and accountability sought to be ensured under the Act.” The Authority imposed what it called a “moderate penalty” of Rs 1 lakh and directed immediate registration of the projectCase Title: Authorised Representative of RERA v. M/s Alphabet Infra Pvt. Ltd. @ M/s PRU-RLDA Projects Pvt. Ltd.Citation : 2026 LLBiz RERA (BR) 7Complaint Number.: RERA/SM/737/2025For RERA: Advocate Abhinay PriyadarshiFor Respondent: Advocates Jai Ram Singh and Jolly AhlawatClick Here To Read/Download Order

'Coming Soon' Posters Are Ads, Bihar RERA Slaps ₹1 Lakh Cost On Developer For Advertising Unregistered Project

Shivani PS

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