NEW DELHI: The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued a public advisory to homebuyers, cautioning them against deceptive promotional schemes such as “assured returns” and “fixed rental income before possession.” The authority stated that these offers lack legal validity.
UP-RERA noted that many developers continue to promote schemes like subvention plans, pre-EMI payments until possession, buyback guarantees, and lease assurance models to lure buyers. Some developers also use flashy offers like free cars, gold coins, and international trips.
Sanjay Bhoosreddy, chairman of UP-RERA, stated, “Homebuyers should be wary of promotional schemes like assured returns or fixed rental income, as these are often not legally enforceable under RERA. Buyers should rely solely on verified information from the UPRERA portal and ensure that all transactions adhere to the prescribed norms.”
UP-RERA clarified that such promises are only enforceable if explicitly included in RERA-compliant agreements. Misleading advertisements and false claims violate provisions of the Real Estate (Regulation and Development) Act, 2016.
The authority remarked that actions can be taken under its regulatory framework against developers who issue misleading advertisements or make non-legally binding promises. Possible penalties may include fines or other punitive actions.
In its advisory, UP-RERA urged buyers to invest only in projects registered with the authority and to verify project details such as land title, approvals, layout plans, and completion timelines through its official portal.
Homebuyers are also advised to carefully review the builder-buyer agreement or sale agreement and ensure it conforms to the necessary formats without ambiguous terms. The regulator stressed that payments should be made via banking channels into designated project accounts.
The authority warned against booking properties based solely on advertisements or verbal assurances and cautioned against investing in unregistered projects or making cash payments.
