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• Telangana RERA has restrained the developer of Jai Vasavis ORR Heights from advertising, marketing, booking or selling flats until further orders.
• The authority directed the developer to refund INR 14.9 lakh to a homebuyer with 10.7% annual interest within 60 days.
• The complaint alleged that the project was marketed, bookings were accepted and payments were collected before RERA registration was obtained.
• TGRERA has also initiated penalty proceedings and issued directions to begin the process for revoking the project's registration over alleged violations of the Real Estate (Regulation and Development) Act, 2016.
The Telangana Real Estate Regulatory Authority (TGRERA) has restrained the developer of the Jai Vasavis ORR Heights project from advertising, marketing, booking or selling flats or collecting any further payments until further orders. Along with the restriction, the authority directed the developer to refund INR 14.9 lakh to complainant Chilakalapudi Venkateshwara Rao with interest at 10.7% per annum from the respective dates of payment. The refund has been ordered to be made within 60 days of receiving the order.
The action follows a complaint filed by Rao, a resident of Ghatkesar, against the developer and other parties associated with the project. He informed the authority that he had invested in the residential project after being influenced by advertisements, pre-launch offers, brochures, celebrity promotions and representations made by the marketing team. According to the complaint, the developer represented that the project had obtained all necessary approvals and even circulated a PDF through a WhatsApp group claiming that the project had secured RERA approval.
However, Rao alleged that the document was later removed from the WhatsApp group and that the project received its actual RERA registration only in September 2023. By then, the developer had already advertised the project, accepted bookings, executed agreements with buyers and collected payments. Under the Real Estate (Regulation and Development) Act, 2016, developers are not permitted to advertise, market, book or sell units before obtaining RERA registration.
The complaint also stated that the developer conducted a bhumi puja for the project in April 2022, while the agreement of sale-cum-general power of attorney with the landowners was executed only later. Rao alleged that promotional material released during the ceremony created the impression that the developer had already secured lawful rights over the land and was authorised to undertake the development.
Rao further submitted that he had originally invested in another project, Jai Vasavis Bliss Heights, but was later shifted to Jai Vasavis ORR Heights due to the lack of construction progress in the earlier development. He placed on record an investment agreement signed in early 2022, under which the project was to be completed within 30 months, along with a six-month grace period. The agreement also provided for rental compensation of INR 6,000 per month if possession was delayed beyond the committed timeline.
After examining the complaint, TGRERA exercised its powers under Sections 37 and 38 of the Real Estate (Regulation and Development) Act, 2016, and restrained the developer from carrying out any further transactions related to the project. The authority also directed its secretary to initiate penalty proceedings under Sections 59 and 60 for alleged violations of Sections 3 and 13 of the Act, subject to approval by the authority.
In addition, TGRERA ordered that a show-cause notice be issued within seven days asking the developer to explain why the project's registration should not be revoked under Section 7 of the Act. The authority cited several alleged violations, including marketing the project before obtaining registration, collecting consideration from buyers before registration, lack of substantial construction progress, failure to submit mandatory quarterly progress reports and financial disclosures, and the absence of occupancy or completion certificates.
The authority also referred to its interim order issued last year, under which the registration of Jai Vasavis ORR Heights had already been kept in abeyance. The latest order strengthens the regulator's action against the project and reinforces the requirement for developers to comply with RERA provisions before launching or selling real estate projects. Such provisions were introduced under the RERA Act to improve transparency, ensure timely disclosures and safeguard the interests of homebuyers.
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