News: ’Assured Returns’ Offers Carry No Legal Weight: UP RERA-17-04-2026
Promises of ’assured returns’ or ’fixed monthly rental income before possession’ have no legal validity unless they are written into RERA-compliant agreements and approved formats, the Uttar Pradesh Real Estate Regulatory Authority has said in a public advisory to homebuyers.
UP RERA said it has noticed some promoters still luring buyers with subvention plans, pre-EMI payments till possession, fixed rental income before completion, buyback guarantees, lease assurance schemes and investment plans promising assured returns. Freebies such as cars, gold coins and foreign trips are also being offered. Without legal backing, it said, these are only promotional tactics that may not be enforceable and could expose buyers to financial risk.
Citing the Real Estate (Regulation and Development) Act, 2016, the authority said misleading advertisements and false commitments violate regulatory norms. Under Rules 38 and 61 of the UPRERA framework, it said, strict action can be taken against promoters who issue deceptive advertisements or make promises outside the legally approved agreement, including penalties, fines or other punitive measures.
Buyers have been advised to invest only in projects registered with the authority and to check registration status, land records, approved layouts and declared completion timelines on its official website before committing money. They should read the Builder Buyer Agreement (BBA) or Agreement for Sale (AFS) carefully to confirm it follows the prescribed format and has no ambiguous or misleading clauses. All payments should go through banking channels into the project’s designated collection account listed on the UP RERA portal. Homes should not be booked on the strength of advertisements alone.
Sanjay Bhoosreddy, chairman, UP RERA, said buyers should be cautious about such promotional offers, rely only on verified information on the UPRERA portal and ensure all transactions and agreements comply with prescribed norms. He said the authority is continuously monitoring the sector and will act strictly against promoters who violate the Act through deceptive advertisements or false promises.
