Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Telangana Real Estate Regulatory Authority (TG-RERA) imposed a total penalty of about INR 4.74 crore on Bharathi Builders Pvt Ltd for collecting funds from homebuyers through pre-launch offers without registering the Bharathi Lake View Apartments project in Kompally under RERA. The developer accepted payments despite not starting construction or obtaining mandatory approvals. TG-RERA declared the company a defaulter promoter and directed a full refund with applicable interest within 60 days. The authority also emphasized the risks of investing in unregistered projects and called for strict compliance with RERA regulations.
The Telangana Real Estate Regulatory Authority (TG-RERA) has penalized Bharathi Builders Pvt Ltd with approximately INR 4.74 crore for illegally collecting funds from buyers through pre-launch schemes without registering their project under the Real Estate (Regulation and Development) Act. The case pertains to the Bharathi Lake View Apartments in Kompally, Medchal-Malkajgiri district near Hyderabad. The authority found that the developer had marketed the project, collected funds, and issued pre-launch offers despite lacking the required regulatory approvals and not having initiated construction. Advertisement
Complaints from multiple homebuyers highlighted that the developer had collected substantial payments while the project remained unregistered. TG-RERA noted that promoting, marketing, or accepting money for projects before registration contravenes the law, which is designed to protect buyers. The act applies to projects exceeding 500 square metres or comprising more than eight housing units.
The regulator's investigations revealed that the pre-launch campaign began around 2021, and buyers were assured of project completion within about 24 months. However, the developer neither commenced construction nor obtained the necessary RERA registration. In light of these violations, TG-RERA imposed a penalty of INR 3.56 crore in the present proceedings and added an earlier penalty of INR 1.18 crore, bringing the total to INR 4.74 crore.
TG-RERA declared Bharathi Builders a defaulter promoter and directed the company to refund all collected funds along with interest as per Telangana Real Estate Rules. The refund process is to be completed within 60 days. The authority also clarified that Sree Bharathi Builders, another entity associated with the project, is considered a promoter under the law, making all related entities jointly responsible for the refund.
In its order, the authority warned prospective buyers about the risks of pre-launch investments in unregistered projects. Such schemes are prohibited and carry legal and financial risks as they fall outside regulatory oversight. TG-RERA emphasized that buyers should always check a project's registration on the official portal to ensure transparency and access to legal protections such as verified timelines, approvals, and financial safeguards under RERA.
This action reflects TG-RERA's ongoing efforts to enforce compliance with the Real Estate (Regulation and Development) Act and curb illegal pre-launch activities. Since the Act's implementation in 2016, state authorities have actively monitored developers, ensured registration of projects, addressed buyer complaints, and taken strict action against defaulters to safeguard homebuyer interests. The case also serves as a cautionary example for developers, reinforcing the importance of transparency and adherence to the law.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
