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The Telangana Real Estate Regulatory Authority (TG RERA) has fined Buildox Private Limited INR 1.6 lakh and ordered the refund of INR 2 lakh to a buyer for promoting and accepting payments for an unregistered project, "The Continent," in Kondapur. The buyer, Sharath, filed a complaint after discovering the project lacked approvals and the land was under litigation. Buildox denied involvement but failed to provide evidence or comply with interim orders. TG RERA ruled the company violated Section 3 of the Real Estate Act, mandating the refund within 15 days. The case highlights the importance of transparency and regulatory compliance in real estate.
A builder in Telangana has been penalized INR 1.6 lakh and directed to refund INR 2 lakh to a flat buyer by the Telangana Real Estate Regulatory Authority (TG RERA). The penalty was imposed due to allegations of accepting booking amounts without obtaining the necessary approvals. Advertisement
The complainant, Sharath, accused Buildox Private Limited of promoting and collecting funds for a project named "The Continent," located in Kondapur/Hafeezpet, without registering it with TG RERA. Sharath reported discovering the project through a Facebook post, which led to further communication via WhatsApp with an individual named Kamal. Following this, discussions took place at the Buildox office with a representative named Damodara Prasad, who presented himself as a director of Hexasky Infra Projects managing Buildox's sales.
Convinced by assurances of project legitimacy and a promised possession date of 2028, Sharath paid INR 2 lakh as a token amount in February. However, he later discovered that the project lacked mandatory approvals and that the land was under litigation. This prompted him to file a complaint with TG RERA.
In its defense, Buildox dismissed the accusations, claiming the Facebook advertisement was unauthorized and unrelated to them. The company denied the existence of a project named "The Continent" and any association with Kamal or Damodara Prasad. Additionally, Buildox had not received any payment related to the project but admitted an attempt to refund INR 2 lakh, which was reportedly blocked by the complainant.
After examining the evidence, TG RERA held Buildox accountable, citing the company's inability to substantiate its claims or provide bank statements as directed in interim orders. The authority also noted that the company's actions violated Section 3 of the Real Estate (Regulation and Development) Act, 2016, by promoting and accepting payments for an unapproved project.
On November 11, TG RERA imposed a fine under Section 63 of the Act and instructed Buildox to refund the INR 2 lakh booking amount within 15 days. It also cautioned the company that failure to comply would result in further legal consequences under the same section.
In conclusion, TG RERA's ruling underscores the importance of adhering to real estate regulations to protect buyers from fraudulent practices. The authority's actions demonstrate a commitment to enforcing accountability and ensuring fair treatment for consumers. Buildox's failure to substantiate claims and comply with orders highlights the consequences of bypassing mandatory registration and approvals. With a stern warning of further legal action for non-compliance, this case serves as a strong message to developers about the need for transparency and adherence to the Real Estate Act. Buyers are encouraged to verify project registrations to safeguard their investments.
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