NEW DELHI: In response to reports of builders and agents using official-sounding language to manipulate the appearance of their projects, the Central government has urged states and real estate regulators (RERAs) to intervene and prohibit misleading advertisements that could trick buyers. They have also been directed to submit reports focused on safeguarding buyer interests.
Sources indicate that the issue was thoroughly discussed at a recent meeting of the Central Advisory Council (CAC) of RERA, led by Housing and Urban Affairs Minister Manohar Lal Khattar. Instances of misleading advertisements were presented to all members, including representatives from state governments and RERA authorities.
“This has been recognized as an ongoing issue, necessitating immediate action,” stated a CAC member. The ministry’s presentation highlighted instances where advertisements lacked the identification of the publisher or promoter. “This allows them to evade mandatory requirements, like providing essential project information. A significant number of these ads seem to originate from real estate agents,” noted a source.
Abhay Upadhyay, a CAC member and president of the homebuyers’ group FPCE, has reached out to Khattar stressing the importance of addressing misleading advertisements to protect consumers. A study by the Advertising Standards Council of India (ASCI) last year uncovered that among 2,087 advertisements in Maharashtra, 1,027 were in violation of the norms established by Maharashtra RERA.
FPCE has also raised alarms about discrepancies between RERA web pages, developers’ websites, and sanctioned plans, urging the government to implement a system to rectify these inconsistencies.
