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In a strong enforcement move, the Telangana RERA has fined Bhuvanteja Infrastructures and partner Chekka Bhagyalaxmi INR 14.9 lakh for failing to register their 'Aura Velimala Phase 1' project in Sangareddy district. Despite promising possession by December 2023, the project remains only 20% complete. Buyers reported lack of communication, fund diversion, and continued sales despite stalled construction. TG RERA found violations of Sections 3 and 4 of the RERA Act, including absence of HMDA approvals. The developers must refund payments to 62 buyers with 11% interest and register the project immediately. Sales are banned until compliance, with further penalties possible under Section 63.
In a decisive move to uphold real estate regulations, the Telangana Real Estate Regulatory Authority (TG RERA) has levied a penalty of INR 14.9 lakh on Bhuvanteja Infrastructures and its partner Chekka Bhagyalaxmi for non-registration of their 'Aura Velimala Phase 1' project located in Velimala village, Sangareddy district. This action follows multiple complaints from buyers who entered into unregistered agreements with the developers, with possession initially promised by December 2023. Advertisement
As of June 2024, the project's construction progress stood at a mere 20%, with significant work, including structural development in blocks A and B, yet to commence. Despite repeated communications, buyers reported receiving vague or no responses from the developers. Many alleged diversion of funds, noting that sales efforts continued unabated despite the stagnation on-site.
TG RERA's investigation revealed that the promoters collected funds without securing necessary approvals from the Hyderabad Metropolitan Development Authority (HMDA), violating Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016. The authority also noted that the respondents are involved in several criminal cases related to fund misappropriation and are currently unavailable to complete the construction and hand over the allotted apartments.
In its ruling, the Telangana Real Estate Regulatory Authority (TG RERA) held Bhuvanteja Infrastructures and its partner, Chekka Bhagyalaxmi, jointly and severally liable to refund the amounts collected from 62 buyers. This refund is to be made along with statutory interest at 11% per annum, calculated from the date of each agreement until the refund is completed.
Additionally, TG RERA mandated the immediate registration of the 'Aura Velimala Phase 1' project. The authority has also prohibited any marketing or sale of units within the project until such registration is duly approved. Failure to comply with these directives will attract further penalties under Section 63 of the Real Estate (Regulation and Development) Act, 2016. This section stipulates that promoters who fail to adhere to the orders of the authority may be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of the real estate project.
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