Eye-Catching advertisements of pre-launch offers and schemes by real estate developers have come under the scanner of the Supreme Court which today directed all states to respond to a petition which sought amendment in laws to protect innocent customers from being cheated by “misleading and false” information.

A Bench headed by Chief Justice K G Balakrishnan while perusing a Public Interest Litigation (PIL) filed by an NGO, Sarankshak (the protector), also asked all Union Territories (UTs) to furnish their response, besides asking the Centre to reply.

Counsels for the petitioner, K S Rana and Anil Karnwal, while seeking an amendment in the existing provision under Section 420 (cheating) of the Indian Penal Code, pointed out how even the Law Commission of India in one of its report had suggested a sub-section — 420 (b) — under IPC to make bogus advertisements as well as their publication punishable.

The petitioner sought directions to frame National Guidelines for real estate developers and builders issuing public advertisements. It wanted the court to direct developers and property dealers to deposit all property-related papers with the publication through which the advertisements were being published to allow buyers to cross check claims.

The bench, also comprising Justices P K Balasubramanyan and R V Raveendran, sought replies from several leading real estate developers as well.

The petition stated how several builders had defrauded the public of their hard earned money through misleading advertisements. Driving home the point, the petitioner referred to several advertisements issued by builders who did not even own any land.