Using Fake Registration Number To Market Unregistered Project Is 'Serious Fraud': Bihar RERA

The Bihar Real Estate Regulatory Authority (Bihar RERA) on 5 August held that using a fabricated RERA registration number to advertise, develop and sell plots in an unregistered project constitutes a grave and wilful violation of the Real Estate (Regulation and Development) Act, 2016 (RERA Act), and imposed a Rs. 90 lakh penalty on Matrichhaya Infrastructure & Developers Pvt. Ltd.

Chairman Vivek Kumar Singh passed the order, holding that the promoter deliberately used a fake registration number to create the false impression that its project was duly registered and to deceive prospective buyers. He held:

“The Authority observes that the respondent has deliberately mentioned a fabricated RERA Registration Number without obtaining registration of the project under the provisions of the Real Estate (Regulation and Development) Act, 2016. Such an act is a grave and wilful violation of the Act and amounts to a deliberate attempt to mislead and deceive prospective allottees by creating a false impression that the project is duly registered with the Authority. The conduct of the respondent clearly reflects mala fide intent, demonstrates a conscious disregard for the statutory provisions, and constitutes a serious fraud upon innocent homebuyers as well as the Authority. Such misconduct cannot be condoned.”

The proceedings arose after Bihar RERA came across advertisements and promotional material circulated on different platforms inviting buyers to purchase plots in the project without the promoter first obtaining the mandatory registration required under Section 3(1) of the RERA Act. The Authority initiated suo motu proceedings and issued notice to Matrichhaya Infrastructure on 2 March 2023, seeking an explanation.

Bihar RERA's Legal Representative Rishikesh Rajan submitted that the brochure issued by the promoter constituted an “advertisement” under Section 2(b) of the RERA Act. He submitted that the promoter had marketed plots and invited bookings without obtaining prior registration as required under Section 3 of the Act. He also pointed out that the promotional material mentioned RERA Registration No. RERAP01112022125522, which the Authority found to be fabricated.

A technical report submitted on 29 August 2023 assessed the estimated cost of the project at approximately Rs. 404.217 crore. In its reply dated 29 July 2026, Matrichhaya Infrastructure contended that the project was situated in Mauza Anandpur, outside the notified planning area, and therefore the mandatory registration requirement under Section 3 of the RERA Act did not apply.

The Authority rejected the contention, recording that Mauza Anandpur fell within the planning area and was included in the list of planning areas available on Bihar RERA's official website. It also held that the promoter had failed to produce any credible or authentic material to support its claim. Further, it found that the promoter had gone beyond merely advertising the unregistered project. It had developed the project, executed sale deeds and sold plots to members of the public without obtaining registration.

The Bench also held that these acts clearly breached the statutory requirement that registration must precede any advertising, marketing, booking or sale of units in a real estate project. It observed that selling plots without registration showed an attempt to circumvent the regulatory framework, obtain unlawful economic benefit and defeat the transparency and accountability safeguards intended to protect homebuyers.

Accordingly, Bihar RERA imposed a Rs. 90 lakh penalty under Section 59 of the RERA Act and directed Matrichhaya Infrastructure to deposit the amount within 60 days, failing which further action under Section 59(2) may follow.

It also directed the promoter to immediately complete the formalities for registration and remove all advertisements relating to the project within 14 days. It further directed the Inspector General of Registration, Bihar, to instruct the concerned Sub-Registrars to impose a blanket ban on execution of sale deeds relating to the project and directed the concerned Circle Officer not to mutate land pertaining to the project.

Appearances for petitioner (RERA Bihar): Legal Representative Rishikesh Rajan.

Appearances for respondent (M/s Matrichhaya Infrastructure & Developers Pvt. Ltd.): Advocate Ishtiyaque Hussain.