Warning for homebuyers against ‘assured returns’ and ‘fixed rental income till completion’ schemes

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. 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.
The authority said that offers like ‘assured returns’ or ‘fixed rental income till completion’ do not have legal sanctity unless explicitly provided for within RERA compliant agreements and approved formats, it said.
UP RERA said it has observed that some promoters continue to lure buyers with schemes such as subvention plans, pre-EMI payments till possession, fixed rental income before completion, buyback guarantees, lease assurance schemes, and investment plans promising assured returns. In addition, freebies like cars, gold coins, and foreign trips are being offered to attract buyers. The authority said that without proper legal backing, such offers are merely promotional tactics and may not be enforceable.