SEBI Declared Assured Scheme as illegal Ponzi Schemes
The Securities and Exchange Board of India #SEBI has declared ‘Assured Returns’ as illegal Ponzi schemes. It warns consumers against investing their money where assured returns are promised or unrealistic returns are offered. Many buyers complained in the past that developers either stopped paying them or the cheques got bounced after a few months of regular payments. Sometimes even the principal amount gets stuck and buyers find themselves cheated.
Assured returns schemes are illegal. Some builders take the money and assure fixed rentals etc. How can they pay rent when the property is not there? Buyers should be aware of such schemes and should not risk their investment. SEBI does not approve such schemes and without such approvals, buyers should not invest in such schemes
There have been so many cases in the past where buyers have invested in such schemes and got stuck. What can they do? “Buyers who are stuck in such schemes can either file a suit in the NCLT or go to the Civil courts and file a recovery suit.
Many FIRs have been filed against people who have cheated buyers with such schemes. You must understand that there is a high risk of losing both your principal and interest. RERA was introduced to protect buyers against such fraud. Verify such schemes before investing.
H-RERA Notification Against “Assured Return Scheme”
Haryana Real Estate Regulatory Authority (H-RERA) said that it is issuing notices to developers who are trying to lure people to invest in their residential and commercial projects, promising “Assured Returns”. “We’ve decided to take action against developers who, under the garb of real estate projects, are fooling people by promising “Assured Returns,” said Gurugram H-RERA chairman KK Khandelwal.
Even agents who are selling projects with the tag of ’Assured Returns’ will be booked. “If a developer insists on their project being sold with the promise of ‘Assured Returns’, agents should approach H-RERA. The authority will probe the complaint, and if the developer is found guilty of such practice, their registration will be cancelled,” Khandelwal added further