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Real Estate

UP RERA Warns Homebuyers Against 'Assured Returns' and 'Fixed Rental Income' Schemes

  • by- Zaid
  • Apr 18, 2026
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.
UP RERA Warns Homebuyers Against 'Assured Returns' and 'Fixed Rental Income' Schemes

Lucknow, April 18: 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.

Misleading Schemes Identified

  • Subvention plans

  • Pre-EMI payments till possession

  • Fixed rental income before completion

  • Buyback guarantees

  • Lease assurance schemes

  • Investment plans promising assured returns

  • Freebies like cars, gold coins, foreign trips

Legal Position

UP RERA emphasized that misleading advertisements and false commitments constitute a violation of regulatory norms under the Real Estate (Regulation and Development) Act, 2016.

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. Violations may attract penalties, fines, or other punitive measures.

Advisory for Homebuyers

  • Invest only in RERA-registered projects

  • Verify project details on UP RERA official website (registration status, land records, approved layouts, completion timelines)

  • Carefully review Builder Buyer Agreement (BBA) or Agreement for Sale (AFS) for ambiguous or misleading clauses

  • All payments through proper banking channels into project's designated collection account

  • Do not book based solely on advertisements or promotional campaigns

  • Avoid cash payments

  • Do not rely on verbal assurances from promoters or agents

Chairman's Statement

Sanjay Bhoosreddy, Chairman of UP RERA, said: "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."

He added 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.