The Uttar Pradesh Real Estate Regulatory Authority has issued a public advisory cautioning homebuyers against misleading promotional schemes such as “assured returns” and “fixed monthly rental income before possession,” by the promoters stating that such offers have no legal validity. The authority has urged buyers to remain vigilant and make informed investment decisions in the real estate sector.

UP RERA has observed that some real estate promoters continue to publish alluring advertisements offering schemes like subvention plans, pre-EMI payments till possession, fixed rental income before completion, buyback guarantees, lease assurance schemes, and investment plans promising fixed returns on investment. In addition, offers such as free cars, gold coins, and luxury foreign trips are also being used to attract buyers.

The authority has clarified that in the absence of proper legal backing, such offers are merely promotional tactics designed to influence buyer behaviour and may not be enforceable.

Legal Provisions and Penalties

Referring to the Real Estate (Regulation and Development) Act, 2016, UPRERA emphasized that misleading advertisements and false commitments are a violation of regulatory norms. As per Rules 38 and 61 of the UPRERA framework, strict action can be taken against promoters who issue deceptive advertisements or make promises that are not part of the legally approved agreement. Such violations may attract penalties, fines, or other punitive measures as deemed appropriate by the authority.

The authority reiterated that offers like “assured returns” or “fixed rental income till completion” do not have legal sanctity unless explicitly provided for within RERA-compliant agreements and approved formats.

Advisory for Homebuyers

UPRERA has advised prospective buyers to invest only in projects registered with the authority and to verify all project-related details on its official website. Buyers should check the project’s registration status, land records, approved layout plans, and declared timelines for completion before making any financial commitment.

The authority has also directed buyers to carefully read the Builder Buyer Agreement (BBA) or Agreement for Sale (AFS) to ensure that it is in the prescribed format and does not contain any ambiguous or misleading clauses. Payments should be made only through proper banking channels into the designated collection account of the project, as available on the UP RERA portal.

Caution Against Risky Practices

UP RERA has warned buyers against booking units solely on the basis of advertisements or promotional campaigns. The authority has also instructed against making cash payments, relying on verbal assurances from promoters or agents, and investing in projects that are not registered under RERA.

Further, buyers have been advised not to get influenced by schemes offering assured returns, fixed monthly income, or attractive gifts and incentives, as these may not be legally enforceable and could expose them to financial risks.

Ensuring Transparency and Buyer Protection

UP RERA repeated its commitment to ensuring transparency, accountability, and protection of homebuyers interests in the real estate sector. The authority stressed that informed decision-making and strict adherence to RERA guidelines are essential for safeguarding investments.

Chairman’s Statement

UP RERA chairman Sanjay Bhoosreddy said that the authority is continuously monitoring the sector to curb misleading practices and protect buyers’ interests.

“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,” he stated.

He further added that UPRERA will take strict action against promoters found violating provisions of the Act by issuing deceptive advertisements or making false promises, and urged buyers to stay alert to safeguard their investments.