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UP RERA warns homebuyers against ‘assured returns’ and ‘fixed rental income till completion’ schemes
UPRERA has cautioned homebuyers against misleading schemes such as ‘assured returns’ and ‘fixed monthly rental income before possession’
The Uttar Pradesh Real Estate Regulatory Authority has issued a public advisory warning homebuyers against misleading schemes such as ‘assured returns’ and ‘fixed monthly rental income before possession,’ stating that such offers have no legal validity. The authority urged buyers to remain vigilant and make informed decisions, reiterating that such promises lack legal sanctity unless explicitly included in RERA-compliant agreements or approved formats.
The authority said 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, it said.
UP RERA said it has observed that some promoters continue to lure buyers with schemes such as subvention plans, pre-EMI payments till possession, fixed rental income before completion, buyback guarantees, lease assurance schemes, and investment plans promising assured returns. In addition, freebies like cars, gold coins, and foreign trips are being offered to attract buyers. The authority said that without proper legal backing, such offers are merely promotional tactics and may not be enforceable.
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Citing the Real Estate (Regulation and Development) Act, 2016, UP RERA emphasised that misleading advertisements and false commitments constitute a violation of regulatory norms and can invite penalties.
“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,” it said.
UP RERA has advised prospective buyers to invest only in projects registered with the authority and to verify all project details on its official website, including registration status, land records, approved layouts, and declared completion timelines before making any financial commitment.
The authority also urged buyers to carefully review the Builder Buyer Agreement (BBA) or Agreement for Sale (AFS) to ensure it follows the prescribed format and is free of ambiguous or misleading clauses. It further advised that all payments be made through proper banking channels into the project’s designated collection account listed on the UP RERA portal.
UP RERA warns buyers against booking homes based solely on advertisements
UP RERA has warned buyers against booking units solely based on 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 be 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, it said.
UP RERA stressed that informed decision-making and strict adherence to RERA guidelines are essential for safeguarding investments.
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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,” said Sanjay Bhoosreddy, chairman, UP RERA.
He said that UPRERA will take strict action against promoters found to be violating the provisions of the Act by issuing deceptive advertisements or making false promises. He urged buyers to stay alert to safeguard their investments.
