UP RERA Warns Homebuyers Against Misleading Schemes and Offers
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued a public advisory warning homebuyers against misleading schemes such as 'assured returns' and 'fixed monthly rental income before possession.'
What are Misleading Schemes and Offers?
- Assured returns
- Fixed monthly rental income before possession
- Subvention plans
- Pre-EMI payments till possession
- Fixed rental income till completion
- Buyback guarantees
- Lease assurance schemes
- Investment plans promising assured returns
UP RERA has observed that some promoters continue to lure buyers with these schemes and offers, which have no legal validity unless explicitly included in RERA-compliant agreements or approved formats.
The Authority's Warning
UP RERA has 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.
What is RERA?
The Real Estate (Regulation and Development) Act, 2016, aims to regulate the real estate sector and safeguard the interests of homebuyers.
What are the Consequences of Misleading Schemes and Offers?
- Misleading advertisements and false commitments constitute a violation of regulatory norms
- Strict action can be taken against promoters who issue deceptive advertisements or make promises that are not part of the legally approved agreement
- Promoters may face penalties, fines, or other punitive measures as deemed appropriate by the authority
What Should Homebuyers Do?
- Invest only in projects registered with UP RERA
- Verify all project details on the UP RERA official website, including registration status, land records, approved layouts, and declared completion timelines
- 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
- Make payments through proper banking channels into the project's designated collection account listed on the UP RERA portal
Words of Caution from UP RERA Chairman
Sanjay Bhoosreddy, chairman, UP RERA, has urged buyers to stay alert and rely only on verified information available on the UPRERA portal. He has also warned that promoters found to be violating the provisions of the Act will face strict action.
Conclusion
UP RERA is continuously monitoring the sector to curb misleading practices and protect buyers' interests. Homebuyers are advised to be cautious of promotional offers like assured returns or fixed rental income and to ensure that all transactions and agreements comply with prescribed norms.
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