Uttar Pradesh RERA Issues Warning on Misleading Real Estate Schemes
UP RERA warns homebuyers against ‘assured returns’ and ‘fixed rental income till completion’ schemes
Hindustan Times
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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has cautioned homebuyers against schemes promising 'assured returns' and 'fixed rental income' prior to possession, emphasizing that such offers lack legal validity unless included in RERA-compliant agreements. Buyers are urged to verify project details and avoid promotional tactics that may expose them to financial risks.
- 01UP RERA warns against 'assured returns' and 'fixed rental income' schemes.
- 02Such offers lack legal validity unless included in RERA-compliant agreements.
- 03Promoters are using misleading tactics to attract buyers, including freebies.
- 04Buyers should invest only in RERA-registered projects and verify details.
- 05Strict action will be taken against promoters making false promises.
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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued a public advisory warning homebuyers about misleading schemes that promise 'assured returns' and 'fixed rental income' before possession. The authority clarified that these offers lack legal validity unless they are explicitly included in RERA-compliant agreements. UP RERA has observed that some promoters are enticing buyers with various schemes, including subvention plans and attractive freebies like cars and gold coins. These promotional tactics are deemed unenforceable without proper legal backing. The authority emphasized that misleading advertisements and false commitments violate regulatory norms, which can lead to penalties for promoters. Buyers are advised to invest only in projects registered with UP RERA, verify project details on the official website, and ensure that agreements comply with prescribed formats. The authority is committed to monitoring the sector to protect buyers' interests and will take strict action against violators. Sanjay Bhoosreddy, chairman of UP RERA, urged homebuyers to remain vigilant and make informed decisions to safeguard their investments.
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This advisory helps protect homebuyers from financial risks associated with misleading real estate schemes.
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