To prevent this open loot, the Supreme Court recently issued a notice to the central and state governments seeking guidelines from them on the mass media advertisements carried out by real estate companies and builders. The Apex Court’s intervention was prompted by a public interest litigation (PIL) filed by NGO, Sanrakshak (the Protector).
The genesis of the problem lies in the fact that builders issue illicit advertisements stating that they have government approval for a particular real estate project. The seal of government approval often leads the gullible public to believe that project is genuine and that their money is going into safe hands (that too without proper paper-work!). Misusing media through larger-than-life pre-launch blitz, the real estate developers draw advance from the public for factitious ventures. After a certain time gap, these fl y-by night operators vanish into thin air siphoning off millions with impunity. “These pre-launches sometimes are corporate frauds masquerading as news items. Media must insist on a signed brochure stating what the touted features are, so that responsibility can be fixed. At present, if someone invests based on media reports, he is exposed, as later on the real estate operator can always suggest that the media got it wrong,” emphasised Harish Salve, a noted lawyer and former Solicitor General of India, while talking to B&E.
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Source : IIPM Editorial, 2006
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
