UPRERA Warns Homebuyers Against Misleading ‘Assured Returns’ Offers
Lucknow / Gautambuddh Nagar, April 17, 2026: The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has issued a public advisory cautioning homebuyers against promotional schemes such as “assured returns” and “fixed monthly rental income before possession,” stating that these offers lack legal validity.
According to a press release from UPRERA, the authority noted that some promoters continue to use alluring advertisements involving subvention plans, buyback guarantees, and luxury incentives like free cars or foreign trips to attract investors. UPRERA clarified that such offers are often mere promotional tactics designed to influence buyer behavior and are not enforceable without proper legal backing within RERA-compliant agreements.
Under the Real Estate (Regulation and Development) Act, 2016, specifically Rules 38 and 61 of the UPRERA framework, misleading advertisements and false commitments constitute a violation of regulatory norms. Promoters found issuing deceptive promises that are not part of the legally approved agreement face strict penalties and fines. The authority has advised prospective buyers to invest exclusively in registered projects, verifying land records, layout plans, and completion timelines on the official UPRERA portal before making financial commitments. Buyers are also urged to ensure that payments are made only through proper banking channels into the designated project collection accounts.
Emphasizing the need for vigilance, the authority instructed buyers to carefully review the Builder Buyer Agreement (BBA) to ensure it follows the prescribed format without ambiguous clauses.
Chairman of UP RERA, Sanjay Bhoosreddy, stated that the authority is continuously monitoring the sector to curb misleading practices and protect buyer 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,” he stated.
Bhoosreddy further added that UPRERA will take strict action against promoters found violating provisions of the Act by issuing deceptive advertisements or making false promises, urging buyers to stay alert to safeguard their investments. The advisory serves as a reminder that informed decision-making and adherence to RERA guidelines are essential for protecting capital in the real estate sector.
