In a significant enforcement action underscoring the strict provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Bihar Real Estate Regulatory Authority (Bihar RERA) has imposed a penalty of ₹1 lakh on developer M/s PRU-RLDA Projects Pvt. Ltd. for advertising an unregistered real estate project through “Coming Soon” posters and online promotions.
The order, passed on December 24, 2025, by Inquiry Commissioner Mr. Sanjaya Kumar Singh in case RERA/SM/737/2025, reinforces that no form of advertising, marketing, or promotion — even preliminary teasers like site banners or “Coming Soon” signage — is permissible before obtaining mandatory RERA registration.
Background of the Case
The proceedings were initiated suo motu by Bihar RERA after noticing an online advertisement for the project named “One World, Bramhmapura Railway Colony” located in Muzaffarpur, Bihar. The project involves redevelopment of a railway colony on land leased for 99 years from the Rail Land Development Authority (RLDA).
A show cause notice dated June 25, 2025, was issued under Sections 35 and 59 of the RERA Act, alleging violation of Section 3, which prohibits promoters from advertising, marketing, booking, selling, or inviting purchases for any real estate project without prior registration with the Authority.
The notice was initially addressed to M/s Alphabet Infra Pvt. Ltd., but the responding entity clarified it was M/s PRU-RLDA Projects Pvt. Ltd., a company incorporated on November 21, 2024. They argued that “Alphabet Infra” was merely a brand name with no connection to the original entity, and that no actual sales or aggressive marketing had occurred.
Developer’s Defense
The promoter submitted that:
- Only a temporary site office was set up, the area was fenced, and two to three “Coming Soon” posters were displayed solely for site identification, not promotion.
- No bookings, sales, or invitations to purchase were made.
- All online advertisements were promptly removed after the November 27, 2025 hearing.
- A police complaint was filed against unknown persons for the alleged unauthorized ads.
- The RERA registration application was already under process.
- They expressed regret and undertook to conduct all activities only after obtaining building plan approval and RERA registration.
They prayed for dropping the proceedings, claiming compliance with the Act.
RERA’s Findings and Reasoning
The Authority rejected the defenses, holding that the materials on record — including pamphlets, online notices, and on-site “Coming Soon” posters visible to the public — squarely fell within the broad definition of “advertisement” under Section 2(b) of the RERA Act.
Section 2(b) defines advertisement as: “any document described or issued as an advertisement through any medium and includes any notice, circular, or other documents or publicity in any form informing persons about a real estate project, or offering for sale of a plot, building, or apartment or inviting persons to purchase in any manner such plot, building, or apartment, or to make advances or deposits for such purposes.”
The Bench emphasized that even minimal promotional displays like site notice boards or “Coming Soon” banners constitute prohibited advertising if done prior to registration. Such actions contravene the express prohibition under Section 3(1) and undermine the core objectives of RERA: promoting transparency, accountability, and protecting homebuyers’ interests.
The order noted: “The conduct of the Respondent not only establishes a violation… but also strikes at the very object and purpose of the enactment… Such conduct undermines the authority of the Regulatory Authority and prejudices the interests of the allottees.”
While acknowledging the promoter’s apology, removal of ads, and remedial undertakings, the Authority deemed a moderate penalty appropriate to deter future violations.
Penalty and Directions
- A penalty of ₹1,00,000 (Rupees One Lakh) imposed under Section 59(1) of the RERA Act.
- The amount must be deposited within 60 days from the order date, failing which further action under Section 59(2) (which can extend up to 5% of the estimated project cost) will follow.
- The promoter directed to immediately register the project and refrain from any future violations.
The matter was disposed of with these directions.
This ruling sets a strong precedent, particularly for developers in early-stage projects or those on public land (like RLDA leases). It aligns with similar strict interpretations in other states, such as Telangana RERA’s actions against “Coming Soon” boards. Industry experts view it as a reminder that RERA’s protective framework leaves no room for pre-registration teasers, no matter how innocuous they appear.
