Home    Realtors can’t lure investors by promising ‘assured returns’: H-RERA

Terming such schemes as “fraud”, the authority said SEBI has already declared “assured returns” as illegal Ponzi schemes.

GURUGRAM: Haryana Real Estate Regulatory Authority (H-Rera) is going to issue notices to developers who are trying to lure people to invest in their residential and commercial projects, promising “assured returns”.

Terming such schemes as “fraud”, the authority said SEBI has already declared “assured returns” as illegal Ponzi schemes.

To lure people to invest in their real estate projects, many developers are offering “assured returns” schemes, in which investors in residential projects are assured of a fixed rental income, while in commercial projects, those assured returns go up to as much as 12%.

“It has come to our notice that many real estate firms are trying to lure investors through “assured returns” schemes, which is basically a financial scam promising very high returns,” said Gurugram H-Rera chairman K K Khandelwal, adding the body is preparing a list of such companies for criminal action by the authority.

“We’ve decided to take action against developers who, under the garb of real estate projects, are fooling people by promising “assured returns”,” he said.

Khandelwal added that even agents who are selling such projects will be booked for unfair practice. “If a developer insists on their project be sold as promising assured returns, agents should approach H-Rera. The authority will probe the complaint, and if a developer is found guilty of such practice, their registration will be cancelled,” he said.

He further advised promoters to desist from such schemes, which SEBI categorises as purely an investment scheme and not a real-estate project. “Such schemes violate the H-Rera Act, and its rules, regulations and directions,” said Khandelwal.

The authority also advised buyers invest in such schemes at their own risk. In around 25-30 cases involving “assured returns” schemes, H-Rera has already refused relief to complainants. Gurugram police have reported that complaints about “assured returns” projects are pouring in at their doorsteps.

“We’ve registered FIRs in two cases. Two more complaints are being investigated,” said Vijay Kumar, in-charge of the economic offences wing (EOW) of Gurugram police.

Sanjeev Kumar, a homebuyer, said despite SEBI declaring “assured returns” schemes as illegal, many developers are offering such schemes.

“They (developers) continue to put up hoardings and online adverts about “assured returns” schemes,” said Kumar, who asked why police was not taking any action against these.




Enjoy Reading this? Share it on

Related Articles

Leave a Reply

Your email address will not be published.


Important Notice For Visitors

Thank you for visiting our website. This disclaimer (“Disclaimer”) is applicable to this website and all microsites and websites owned by Golden Touch Investments. By using or accessing this website you agree with the Disclaimer without any qualification or limitation.

This website is in the process of being updated. By accessing this website, the viewer confirms that the information including brochures and marketing collaterals on this website are solely for informational purposes only and the viewer has not relied on this information for making any booking/purchase in any project of the Company. Nothing on this website, constitutes advertising, marketing, booking, selling or an offer for sale, or invitation to purchase a unit in any project by the Company. The Company is not liable for any consequence of any action taken by the viewer relying on such material/ information on this website.

The Real Estate (Regulation and Development) Act, 2016, and Rules made thereunder (where notified) (“RERA”) have come into effect from 1st August, 2017. The contents of this website may not be fully in line with RERA as of date. We are in the process of modifying, revising and updating this website in terms of the stipulations / recommendations under RERA, which shall be completed soon. Please telephone our sales centres or visit our sales office during office hours to speak to our sales team for verifying all the details, including area, amenities, services, terms of sales and payments and other relevant terms independently with the sales team/ company prior to concluding any decision for buying any unit(s) in the projects. The information contained on this website shall not be construed to be an advertisement. We thank you for your patience and understanding.

Golden Touch Investments  shall neither be responsible nor liable for any inaccuracy in the information provided here and therefore the customers are requested to independently validate the information from the respective developers before making their decisions related to properties displayed here. Golden Touch Investments, its directors, employees, agents and other representatives shall not be liable for any action taken, cost / expenses / losses incurred, by you.

Enjoy Reading this? Share it on