Section 12

Section 12 is RERA's misrepresentation remedy — it creates a direct legal basis for allottees to claim refund and compensation when they have been induced to purchase on the basis of false or untrue statements in advertisements, brochures, or model apartments. **What qualifies as a triggering 'untrue statement':** - Advertised amenities that are not delivered (club house, swimming pool, school, metro connectivity) - Misrepresented carpet area (advertised as 1,200 sq ft; actually 900 sq ft) - False claims of approvals obtained (RERA registration, environmental clearance, fire NOC) - Incorrect project location or layout claims - Misrepresented construction timeline - Claims about quality of construction that are not met **Two remedies (allottee's choice):** 1. *Stay in the project + compensation* — if the allottee wants to continue with the purchase despite the misrepresentation, they can claim compensation for the loss caused by the false statement. 2. *Withdraw + full refund + interest + compensation* — if the misrepresentation is material enough that the allottee does not want to proceed, they can exit and get everything back. **Burden on promoter:** Once an allottee establishes that they relied on a false statement and suffered loss, the burden shifts to the promoter to prove the statement was true or that the allottee did not actually rely on it. **Relationship to Section 60:** In addition to the civil remedy to the allottee (refund + compensation), the RERA Authority can impose a penalty of up to 5% of the project cost under Section 60 for false information at registration or in advertisements.