The Telangana Real Estate Regulatory Authority (TGRERA) fined Jayabheri Properties Private Limited INR 15 lakh for inaccurately disclosing litigation status on its 'The Pinnacle' project. TGRERA, under retired IAS officer N Satyanarayana, declined to revoke the project's registration as requested by the complainants but mandated that Jayabheri update litigation details on the TGRERA website. The complainants, who claim ownership of the project land, alleged that the developer's actions misled potential buyers. TGRERA found that while litigation was noted in a legal opinion, the official website incorrectly marked it as non-existent.
The Telangana Real Estate Regulatory Authority (TGRERA) recently imposed a penalty of INR 15 lakh on Jayabheri Properties Private Limited for providing incorrect information regarding ongoing litigation related to the land for its 'The Pinnacle' project. In an order issued earlier this week, TGRERA, led by retired IAS officer N Satyanarayana, decided against revoking the project's registration, as requested by complainants Mala Brij Kumar Bhaktani and Satyam Brij Kumar Bhaktani. Instead, TGRERA instructed the developers to accurately upload all litigation details pertaining to the land on the TGRERA website.
The complainants asserted that they owned approximately 28 acres in Puppalaguda village, Gandipet mandal, Rangareddy District, and that they had filed lawsuits seeking a declaration of title, which are currently pending before the III additional district judge, Rangareddy, at LB Nagar.
They accused Jayabheri Properties of concealing these litigation details when securing approvals from TGRERA and other authorities. The complainants suggested that the developer's ongoing sales and development activities could infringe on their rights and potentially mislead buyers into assuming the property was free from legal disputes.
In response, Jayabheri Properties argued that the complainants had sought interim injunctions, which the court had not granted, and claimed that TGRERA lacked authority over the matter due to the civil nature of the ongoing court dispute. The company further asserted that it had disclosed the litigation status within its legal opinion uploaded on the TGRERA website, as required under section 4 of the Act, thereby fulfilling regulatory obligations.
TGRERA pointed out that the website specifically asks whether any litigation exists on the project land. Despite including litigation details in its legal opinion, Jayabheri Properties had incorrectly marked 'no' to this question. TGRERA deemed this misrepresentation potentially misleading for prospective buyers and noted that it undermined the Act's purpose, which is to ensure transparency and straightforward access to information for future allottees.
Consequently, under section 60 of the Act, TGRERA concluded that a penalty was necessary. It instructed Jayabheri Properties to pay INR 15 lakh within 30 days and mandated that the website be updated within seven days to accurately reflect the current litigation status.
The TGRERA's decision underscores the importance of transparency within the real estate sector. By penalising Jayabheri Properties and requiring accurate disclosures, TGRERA reinforced its commitment to ensuring prospective buyers receive clear information about property legalities. This ruling also sets a precedent, highlighting that omitting or misrepresenting legal information could have significant consequences, especially where property ownership and consumer trust are concerned. This action by TGRERA aligns with its regulatory mission to protect buyer interests and enforce honest practices within the industry.
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