The Telangana Real Estate Regulatory Authority (TGRERA) imposed an INR 8.5 lakh penalty on Greenspace Housing for failing to register its Greenspace Grand project, in violation of the RERA Act, 2016. The complaint, though later withdrawn, led TGRERA to continue proceedings due to regulatory non-compliance. Despite delays attributed to COVID-19, TGRERA ruled that the project, which began in 2016 without a completion certificate, was legally obligated to register. The authority directed payment within 30 days and mandated registration to avoid further penalties, underscoring TGRERA's strict commitment to upholding the Real Estate Act and protecting buyer interests.
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed a penalty of INR 8.5 lakh on Greenspace Housing and Engineers Private Limited for not registering its apartment project, Greenspace Grand, as mandated by the Real Estate (Regulation and Development) Act, 2016. TGRERA initiated proceedings following a complaint filed against Greenspace Housing, alleging non-registration of the project in violation of Sections 3 and 4 of the Act. Although the complaint was later withdrawn, TGRERA continued with the case due to the seriousness of the regulatory breach.
In response to a show-cause notice issued by TGRERA in June, Greenspace Housing explained that the project originally started in 2016 under a different ownership structure and had secured necessary approvals from the Hyderabad Metropolitan Development Authority (HMDA). The company further stated that delays caused by the COVID-19 pandemic had impacted their ability to meet certain regulatory requirements on time. Specifically, it cited that the release of mortgaged flats and other compliance steps were only completed by 2020, a delay the company attributed to the unforeseen challenges posed by the pandemic.
However, TGRERA determined that, because the project was still ongoing when the RERA Act came into effect in 2016 and had not received a completion certificate by that time, it was legally required to be registered under the Act. According to TGRERA, the project should have registered within three months of the Act's commencement. The authority pointed out that the full completion of the Greenspace Grand project was only achieved in 2020, making it essential for the company to comply with RERA requirements.
Consequently, TGRERA imposed the INR 8.5 lakh penalty under Section 38, along with Sections 59 and 60 of the RERA Act, directing that the amount be deposited into TGRERA's funds within 30 days. Additionally, TGRERA ordered Green Space Housing to submit a registration application for the Greenspace Grand project in accordance with Section 4 of the Act. The authority warned that non-compliance with this directive could result in further penalties under Section 63 of the Act.
This penalty order was issued by TGRERA under the leadership of its chairperson, N. Satyanarayana, who emphasized that the authority would remain vigilant in enforcing the provisions of the Real Estate Act to ensure developers' accountability and protect the interests of homebuyers. This ruling highlights TGRERA's commitment to enforcing compliance in Telangana's real estate market, mandating that developers follow regulatory guidelines to maintain transparency and consumer trust.
TGRERA's ruling reinforces its dedication to ensuring compliance in Telangana's real estate sector, safeguarding buyers, and promoting transparency.
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