Amid misleading ads by builders, government asks states, RERAs to take action

NEW DELHI: Amid instances of builders and their agents using “govt-style terminology” to make their projects resemble official housing schemes, the Centre has asked states and real estate regulators (RERAs) to take action to stop such advertisements to prevent buyers from being deceived. They have also been asked to submit reports to ensure the protection of buyers’ interests.

Sources said there was a detailed discussion on the issue at a recent meeting of the Central Advisory Council (CAC) of RERA, chaired by housing and urban affairs minister Manohar Lal Khattar. Some samples of such misleading advertisements were also shared with all members, including representatives from state govts 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, in its presentation, pointed out that in some cases, advertisements did not disclose the names of publishers or promoters. “By doing so, such players bypass all mandatory norms, such as disclosing specific information related to projects. It appears that many of these advertisements are being disseminated by real estate agents,” a source said.

Abhay Upadhyay, a member of the CAC and president of the homebuyers’ group FPCE, has written to Khattar, emphasizing the need to crack down on misleading advertisements to protect consumers. In fact, 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.

FPCE has also raised concerns about data mismatches between RERA web pages, developers’ websites, and sanctioned plans, urging the govt to implement a system to eliminate such discrepancies.