Over 1000 Misleading Real Estate Ads Found in Maharashtra
In a concerning revelation, over 1000 real estate advertisements in Maharashtra have been flagged as misleading, according to a report by the Advertising Standards Council of India (ASCI). The Forum for People’s Collective Efforts (FPCE), a consumer rights body, has voiced serious concerns over the lack of action against developers who deceive flat buyers with false advertising. This issue has now escalated to the attention of the Union Government’s Secretary of Consumer Affairs.
The issue was brought to light through ASCI’s half-yearly report for April–September 2024, which reviewed 2,115 real estate ads in Maharashtra. Of these, 1,027 were found to be in violation of the Real Estate (Regulation and Development) Act (RERA), with numerous developers accused of making false claims that mislead potential buyers. The forum’s letter to the Consumer Affairs Ministry highlights the ongoing issue of inadequate enforcement, with developers continuing to exploit weak penalties for such deceptive practices. MahaRERA, the state regulator responsible for monitoring the real estate sector, signed a Memorandum of Understanding (MoU) with ASCI in February 2024 to curb misleading advertisements and protect buyers from fraudulent claims.
However, the forum has raised concerns about the lack of meaningful penalties for developers found guilty of misleading advertising, calling for stronger enforcement to protect consumers. ASCI’s report indicated that while 59 per cent of advertisers complied by modifying or withdrawing their ads, a significant portion—628 developers—was penalised with fines totalling ₹88.90 lakh. Despite these actions, the forum has argued that these penalties remain insufficient to deter further violations, particularly when developers continue to exploit the system’s weak enforcement mechanisms.
The growing issue of misleading real estate advertisements poses a serious risk to consumers, who may be swayed by false promises of better amenities, prime locations, and luxurious living conditions. The forum has called for greater accountability from both MahaRERA and the Union Government, urging swift and decisive actions to curb this malpractice. With more homebuyers facing the consequences of deceptive advertising, the need for stringent regulatory measures has never been more urgent. Consumer rights bodies continue to push for stronger safeguards to ensure the real estate market remains transparent and trustworthy for all.