Issue of advertisement or prospectus

(1) No promoter shall issue an advertisement or prospectus, offering for sale of any apartment or plot or inviting persons who intend to take such apartments or plots to make advances or deposits, unless,- (a) the promoter holds a certificate of registration under sub-section (2) of section 78a and it is in force and has not been suspended or revoked and its number is mentioned in the advertisement or prospectus; (b) a copy of the advertisement or prospectus is filed in the office of the Director before its issue or publication; and (c) the promoter holds a valid licence under sub-section (3) of section 78p of this Act for the colony or the building, as the case may be. (2) The advertisement or prospectus issued under sub-section (1) shall disclose the area of the apartments or plots offered for sale, title to the land, extent and situation of land, the price payable and in the case of colonies, also layout of the colony, the plan regarding the development works to be executed in a colony and the number and the validity of the licence issued by the Director under sub-section (3) of section 78p and such other matters as may be prescribed. (3) The advertisement or prospectus shall be available for inspection at the office of the promoter and at the site where the building is being constructed or on the land being developed into a colony, along with the documents specified in this section and in section 78n. (4) When any person makes an advance or deposits on the faith of the advertisement or prospectus, and sustains any loss or damage by reason of any untrue statement included therein, he shall be compensated by,- (a) the promoter, if an individual; (b) every partner of the firm, if the promoter is a firm; (c) every person who is a director at the time of issue of the advertisement or prospectus, if the promoter is a company: Provided however, that such person shall not be liable if he proves that- (a) he withdrew his consent to become a director before the issue of the advertisement or prospectus; or (b) the advertisement or prospectus was issued without his knowledge or consent, and on becoming aware of its issue, he forthwith gave reasonable public notice that it was issued without his knowledge or consent; (c) after the issue of the advertisement or prospectus and before any agreement was entered into with buyers of plots or apartments, he, on becoming aware of any untrue statement therein, withdrew his consent and gave reasonable public notice of the withdrawal and of the reasons therefor. (5) When any advertisement or prospectus includes any untrue statement, every person who authorized its issue, shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to two years or with fine which shall not be less than Rs. 5,00,000 but which may extend to Rs. 10,00,000, or, with both, unless he proves that the statement was immaterial or that he had reason to believing and did upto the time of issue of the advertisement or prospectus believing that the statement was true.