Government Cracks Down on Misleading Real Estate Advertisements
The central government has directed state authorities and RERAs to take action against real estate builders and agents who use misleading advertisements resembling official housing schemes to deceive buyers.
Real EstateReraGovernmentAdvertisementsHomebuyersReal EstateSep 21, 2025
The issue was discussed in detail at a recent meeting of the Central Advisory Council (CAC) of RERA, chaired by Housing and Urban Affairs Minister Manohar Lal Khattar. Samples of misleading advertisements were shared with all members, including representatives from state governments and RERA authorities. “This has been identified as a persistent issue, and hence, there is a need to address it immediately,” said one of the CAC members.
The Ministry of Housing and Urban Affairs highlighted that in some cases, advertisements did not disclose the names of publishers or promoters. By omitting this information, such players bypass mandatory norms, such as disclosing specific details related to projects. “It appears that many of these advertisements are being disseminated by real estate agents,” a source added.
Abhay Upadhyay, a member of the CAC and president of the homebuyers’ group Forum for People's Construction and Environment (FPCE), has written to Minister Khattar, emphasizing the need to crack down on misleading advertisements to protect consumers. FPCE has also raised concerns about data mismatches between RERA web pages, developers’ websites, and sanctioned plans. They have urged the government to implement a system to eliminate such discrepancies.
A study conducted by the Advertising Standards Council of India (ASCI) in Maharashtra last year found that out of 2,087 advertisements, 1,027 were in violation of the norms laid down by the Maharashtra RERA. This highlights the scale of the problem and the urgent need for regulatory intervention.
To address these issues, the government has asked states and RERAs to submit reports detailing the actions taken to curb misleading advertisements. These reports will help ensure that the interests of homebuyers are protected and that the real estate market operates transparently and fairly.
The move by the government is expected to bring greater accountability to the real estate sector and restore trust among potential buyers. By enforcing stricter regulations and penalizing those who violate them, the government aims to create a more reliable and secure environment for homebuyers.
Frequently Asked Questions
What is the main issue addressed by the government?
The main issue addressed by the government is the use of misleading advertisements by real estate builders and agents, which resemble official housing schemes and deceive potential buyers.
What actions has the government taken to address this issue?
The government has directed state authorities and RERAs to take immediate action against misleading advertisements and to submit reports to ensure the protection of buyers' interests.
What is the role of the Central Advisory Council (CAC) of RERA in this context?
The CAC of RERA discussed the issue in a recent meeting, shared samples of misleading advertisements, and emphasized the need for immediate action to address the problem.
What are the concerns raised by the homebuyers’ group FPCE?
FPCE has raised concerns about data mismatches between RERA web pages, developers’ websites, and sanctioned plans, and has urged the government to implement a system to eliminate such discrepancies.
What was the finding of the study conducted by the Advertising Standards Council of India (ASCI) in Maharashtra?
The study found that out of 2,087 advertisements, 1,027 were in violation of the norms laid down by the Maharashtra RERA, highlighting the scale of the problem.
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