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The Telangana Real Estate Regulatory Authority (TG RERA) fined a Hyderabad-based builder INR 8.3 lakh for accepting booking amounts before obtaining RERA registration. This ruling follows complaints by two buyers who paid INR 4 lakh in 2020 for flats in Jai Vasavi's Bliss Heights project. The flats were not delivered even after three and a half years due to a lack of construction permissions. TG RERA also directed the builder to refund the withheld INR 2 lakh to the buyers within 30 days. The case underscores TG RERA's commitment to protecting buyers and enforcing compliance under the Real Estate (Regulation and Development) Act.
TG RERA was established under the Real Estate (Regulation and Development) Act, 2016, with the aim of bringing transparency, accountability, and regulation to the real estate sector. Since its inception, the authority has taken action on numerous violations, including unregistered projects, delayed refunds, and other non-compliance issues. The Real Estate Act mandates that developers must register their projects with RERA before offering units for sale, which helps protect homebuyers from fraudulent practices and delays. Advertisement
The TG RERA has imposed a penalty of INR 8.3 lakh on a Hyderabad-based builder for collecting booking amounts before securing the required RERA registration. Additionally, the builder has been instructed to refund INR 2 lakh to two homebuyers within 30 days.
The case began when D Shruti and D Shravya, the complainants, alleged that they paid INR 4 lakh in November 2020 as an advance for flats in the Jai Vasavi's Bliss Heights project located in Yamnampet, Ghatkesar. The builder had promised to deliver the flats within two and a half years. However, more than three and a half years passed, and the project lacked necessary construction permits. The flats were not delivered as promised, and the builder refunded INR 2 lakh but withheld the remaining amount, which led to the complaint.
In its response, the builder claimed that a settlement was reached in May 2024, where the buyers agreed to accept INR 2 lakh as full and final payment and surrendered all original receipts. However, after reviewing the documents, TG RERA found that the builder had accepted the booking amount in 2020, long before obtaining RERA registration in September 2023. This violated Sections 3 and 4 of the Real Estate (Regulation and Development) Act, which mandates that developers must register their projects with RERA before offering units for sale. As a result, TG RERA imposed the penalty under Sections 59 and 60 of the Act and directed the builder to refund the pending INR 2 lakh to the buyers within 30 days.
The penalty imposed by TG RERA underscores its commitment to ensuring that homebuyers are treated fairly and that developers are held accountable for their actions. For the complainants, this ruling represents a step towards justice and financial recovery, while also ensuring that they are not left disadvantaged due to the builder's failure to honour commitments. For developers, it serves as a reminder of the importance of adhering to RERA regulations to avoid reputational damage and penalties. This case reflects a broader trend in Telangana's real estate sector, where RERA is helping to create a more transparent and trustworthy market for both buyers and builders.
This case serves as a crucial reminder of the importance of adhering to RERA regulations. The penalty imposed on the builder highlights TG RERA's resolve to enforce compliance and safeguard buyers' interests. For developers, it underscores the risks of ignoring legal obligations, while for buyers, it reinforces the necessity of verifying RERA registration before making investments. With RERA actively addressing violations, the real estate sector in Telangana continues to move towards greater transparency and accountability.
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