In response to the rising instances of misleading advertisements by builders and real estate agents, the central government has directed states and Real Estate Regulatory Authorities (RERAs) to take immediate and decisive action. The aim is to protect homebuyers from deceptive practices and ensure transparency in the real estate sector.
The directive follows concerns raised about builders using government-style terminology to make their projects appear as official housing schemes. This tactic can mislead potential buyers into believing that the projects have government backing or are part of a subsidized program, which may not be the case.
During a recent meeting of the Central Advisory Council (CAC) of RERA, chaired by Housing and Urban Affairs Minister Manohar Lal Khattar, the issue of misleading advertisements was thoroughly discussed. Samples of such advertisements were shared with members, including representatives from state governments and RERA authorities, highlighting the urgent need for a crackdown. A CAC member emphasized that this issue has been identified as a persistent problem requiring immediate attention.
The Ministry of Housing and Urban Affairs noted that some advertisements fail to disclose the names of publishers or promoters, making it difficult to trace accountability. It appears that many of these advertisements are disseminated by real estate agents, who may be bypassing mandatory norms for disclosing project-related information.
Abhay Upadhyay, a member of the CAC and president of a homebuyers' group, has urged Minister Khattar to take strict action against misleading advertisements to safeguard consumer interests. He highlighted a study by the Advertising Standards Council of India (ASCI) in Maharashtra, which revealed that a significant number of real estate advertisements violated the norms set by the Maharashtra RERA. Out of 2,087 advertisements reviewed, 1,027 were found to be in violation.
Concerns have also been raised about data mismatches between RERA web pages, developers' websites, and sanctioned plans. FPCE has urged the government to implement a system to eliminate such discrepancies, ensuring that homebuyers have access to accurate and consistent information.
Several RERAs have already started taking action against misleading advertisements. The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has issued a directive mandating transparency and factual accuracy in all promotional content by builders and property developers. Effective July 1, 2025, all real estate advertisements, whether in print, digital, television, hoardings, or social media, must prominently display the project's TNRERA registration number, a scannable QR code, the authority's official website, accurate project location, and complete promoter contact details. TNRERA has warned that media platforms publishing non-compliant advertisements could face consequences, including being reported to the Ministry of Information and Broadcasting and other regulatory bodies. Violations will attract penalties under Sections 61 and 63 of the Real Estate (Regulation and Development) Act, 2016.
Similarly, the Goa Real Estate Regulatory Authority (RERA) has issued guidelines for builders to refrain from adding vague disclaimers while advertising housing or commercial projects in the state. RERA has clarified that a vague mention of the project's amenities would also be considered misleading. The rules apply to online portals that advertise real estate projects and plots for sale in the state.
These measures are aimed at curbing misleading practices and ensuring that buyers can easily verify the authenticity and legal status of real estate projects before making decisions. By mandating the display of RERA registration details and prohibiting vague disclaimers and exaggerated claims, authorities are empowering homebuyers with the information they need to make informed choices.
