NEW DELHI: The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a public advisory warning homebuyers against misleading promotional schemes such as “assured returns” and “fixed rental income before possession,” stating that such offers do not have legal validity.
The regulator said it has observed several developers continuing to advertise schemes including subvention plans, pre-EMI payments till possession, buyback guarantees and lease assurance models to attract buyers. In some cases, promotional offers such as free cars, gold coins and foreign trips are also being used.
Sanjay Bhoosreddy, chairman of the authority said, “Homebuyers should remain cautious of promotional offers like assured returns or fixed rental income, as these are often not legally enforceable under RERA. Buyers must rely only on verified information available on the UPRERA portal and ensure that all transactions and agreements comply with prescribed norms.”
UP-RERA clarified that such promises are not enforceable unless explicitly incorporated in RERA-compliant agreements. It added that misleading advertisements and false commitments violate provisions of the Real Estate (Regulation and Development) Act, 2016.
The authority said action can be initiated under its regulatory framework against developers issuing deceptive advertisements or making commitments not forming part of legally approved agreements. Penalties may include fines or other punitive measures.
As part of the advisory, UP-RERA urged buyers to invest only in projects registered with the authority and verify project details such as land title, approvals, layout plans and completion timelines on its official portal.
Homebuyers have also been advised to carefully review the builder-buyer agreement or agreement for sale and ensure it adheres to prescribed formats without ambiguous clauses. The regulator emphasised that payments should be made only through banking channels into designated project accounts.
The authority cautioned against booking properties based solely on advertisements or verbal assurances and warned against investing in unregistered projects or making cash payments.
