RERA Officials Urge Real Estate Developers to Maintain Transparency in Advertisements
NEW DELHI: Real estate regulatory authorities have issued a stern warning to developers, urging them to adopt transparent practices and avoid misleading advertisements. Non-compliance with the provisions of the Real Estate (Regulation and Development) Act (RERA) could lead to regulatory action.
Speaking at a FICCI real estate conference in New Delhi, Anand Kumar, chairman of Delhi RERA, highlighted the importance of transparent and realistic advertisements. He stated that developers should ensure that project advertisements accurately reflect the offering and are not based on unverifiable claims.
"Advertisements should be realistic. Developers must clearly disclose details such as the covered area and avoid selling units solely on super area basis," Kumar emphasized. He added that lack of transparency often leads to disputes between buyers and builders.
Kumar also cautioned against offering assured returns, stating that such schemes are not permitted under RERA. "Any financial incentives must be transparent and compliant with the law. Buyers should not be misled by promises of fixed returns," he said.
He further stressed that developers should not accept more than 10% of the property cost before executing a registered agreement for sale. This, he noted, is a key safeguard for homebuyers. Both developers and buyers should familiarize themselves with RERA provisions to reduce disputes.
Kumar also flagged issues related to “virtual space” sales and fractional ownership structures, cautioning buyers to verify legal ownership frameworks before investing.
Sanjay R Bhoosreddy, chairman of Uttar Pradesh RERA, shared similar sentiments. He noted that regulatory oversight has helped improve compliance and consumer protection in the sector, particularly in ensuring timely completion of projects and adherence to occupancy and completion certification norms.
Bhoosreddy pointed out that real estate contributes about 12-13% to Uttar Pradesh’s gross state domestic product, higher than the national average. Improved regulatory mechanisms have helped build buyer confidence, he added.
He also mentioned that stricter enforcement has led to a decline in disputes, with the number of daily cases filed with the regulator reducing significantly over the past two years.
Citing project registration trends, Bhoosreddy said approvals have risen significantly in recent years, from around 197 projects in 2023 to 259 in 2024 and 308 in 2025. Registrations have already crossed 100 projects in the current year and are expected to exceed 400 by the end of the year.
He flagged financing constraints as a key challenge, urging financial institutions to step up support for developers through term lending. At the same time, he cautioned builders against delays and financial mismanagement that could push projects into insolvency proceedings, impacting both developers and homebuyers.
Both officials agreed that stronger compliance, improved transparency, and greater awareness among stakeholders will be critical to sustaining growth in the real estate sector.
