The Enforcement Directorate has issued a fresh alert to homebuyers, urging thorough verification of RERA registration and caution against cash payments, as regulatory action intensifies against fraudulent property practices in India.
The Enforcement Directorate has warned homebuyers to be wary of developers who refuse to share RERA registration details, press for cash payments, delay registered paperwork or fail to return money after cancellation, as it stepped up scrutiny of real estate practices tied to alleged fraud. The warning followed the agency’s provisional attachment of assets worth ₹129.80 crore belonging to an Ahmedabad-based property company and its promoters, a move that underscored how buyer complaints can spill into enforcement action.
The advisory reflects a broader push by regulators to make property sales more transparent. According to the Real Estate (Regulation and Development) Act, 2016, most qualifying projects must be registered with the relevant state authority before being advertised or sold. But the absence of a RERA number does not automatically mean a project is illegal, because some smaller developments are exempt. The key point for buyers, the agency said, is to verify the legal position before paying, rather than relying on a broker’s assurances or marketing material.
The Enforcement Directorate said several warning signs should prompt further checks, including oral promises that are not backed by documents, pressure to sign only booking forms, unclear land title, hidden mortgages, guaranteed buyback offers and unusually attractive return claims. It also cautioned against delayed execution of registered agreements and against transactions that involve cash, saying these can make it harder to prove what was actually paid if a dispute arises.
Buyers should also cross-check the project on the state RERA portal, confirm the promoter’s name, review promised possession dates and look at disclosures on approvals, title and encumbrances, the agency said. That advice echoes recent warnings from state regulators. Uttar Pradesh RERA has separately cautioned homebuyers against assured-return schemes, pre-EMI offers and fixed rental promises unless they are set out in legally approved agreements, while also urging buyers to study project disclosures, approvals and builder credentials before committing funds.
The broader message from regulators is simple: verify first, pay later. In a market where misleading advertisements, forged documentation and illegal construction have all drawn enforcement action, homebuyers are being told to treat RERA registration, land records, approvals and a clear payment trail as basic safeguards, not optional extras.
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