PUNE: Consumer advocacy groups are urging MahaRERA to impose regulatory oversight on real estate influencers. These influencers, active across diverse platforms, often promote housing projects without verifying their registration numbers on the Maharashtra Real Estate Regulatory Authority (MahaRERA) portal, potentially misleading prospective homebuyers.
Neha Patil, a homebuyer from Navi Mumbai, shared her experience: “I watched a walkthrough of a project on social media by an influencer. It appeared flawless. However, when I checked the MahaRERA portal, there was no registration number. That raised a red flag.” She noted that many potential buyers are unaware of the necessity to check these credentials.
Consumer groups and activists argue that dismissing influencers is no longer viable. Ramesh Prabhu, chairman of the Maharashtra Societies Welfare Association, stated, “Real estate influencers have integrated into the buying decision process. MahaRERA must establish a structured framework to monitor them. A dedicated team should also review social media platforms,” he informed TOI.
Consumer activist Shrikant Joshi emphasized that MahaRERA has provisions for registering real estate agents aimed at curbing unfair practices. “Thus, they must also oversee real estate influencers,” he added.
MahaRERA officials acknowledged the issue. “Regulating social media influencers is challenging, yet necessary,” remarked a senior official. “The difficulty lies in defining who qualifies as an influencer and establishing accountability. Our current focus is on developers and registered agents.”
Existing regulations require developers to provide quarterly updates, and they mandate real estate agents to pass competency exams and report transaction details biannually. However, influencers, who can significantly influence buyer decisions, remain outside this regulatory structure. “While it may be challenging, we concur it’s crucial,” said a senior official.
This call for stricter regulations comes in the wake of the Securities and Exchange Board of India (SEBI) issuing guidelines in 2023 to oversee financial influencers or “finfluencers.” SEBI prohibited registered entities from associating with unregulated finfluencers and established a closed payment system to safeguard investors.
Now, consumer rights groups seek a similar approach for the real estate sector. Maithali Deshmukh, a member of a housing federation, questioned, “If SEBI can regulate financial advice online, why can’t MahaRERA apply the same logic to real estate?” She pointed out that for many, buying a house represents the largest investment of their lives, and misinformation can lead to serious repercussions.
Meanwhile, MahaRERA has intensified efforts against developers who violate disclosure norms. Numerous projects have been suspended for failing to display RERA numbers and QR codes in their advertisements, resulting in penalties for such infractions.
As developers face increased scrutiny, influencers promoting unregistered projects continue to operate largely unregulated. “Our aim is to reinforce the system so that homebuyers can always access reliable and complete information,” a MahaRERA official stated. “However, as influencers currently fall outside the RERA framework, regulating them would entail broader policy changes, potentially at the central level.”
