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The Telangana Real Estate Regulatory Authority (TG RERA) has directed a promoter to refund INR 42 lakh, along with applicable interest, to two buyers who had invested in an unregistered plotted development. The regulator’s order followed complaints filed by the buyers over the project and the amounts they had paid. TG RERA found that the development had not been registered under the Real Estate (Regulation and Development) Act, prompting it to order repayment of the buyers’ investment with interest. The case adds to regulatory action in Telangana against developers marketing or accepting payments for projects without the required RERA registration. The order provides relief to the two complainants while reinforcing the requirement for eligible real estate projects to obtain registration before being offered to buyers.
The Telangana Real Estate Regulatory Authority (TG RERA) has ordered a promoter to return INR 42 lakh, with applicable interest, to two buyers who had purchased plots in a project that had not been registered with the state regulator. The authority issued the direction after examining complaints raised by the purchasers regarding their investments in the development.
The proceedings centred on the promoter’s failure to bring the plotted project under the RERA framework. TG RERA found that the development was being offered without the registration required under the applicable provisions of the Real Estate (Regulation and Development) Act, 2016.
Following its consideration of the buyers’ complaints, the authority directed the promoter to repay the amounts received from them. The refund ordered for the two purchasers totals INR 42 lakh, with interest to be paid in addition to the principal amount. The promoter has been given 60 days from receipt of the order to make the payment, according to a report on the ruling.
The ruling is significant for plotted developments, which are covered by the RERA framework where the project meets the applicable requirements for registration. The regulatory framework requires promoters of qualifying projects to obtain registration before undertaking activities such as marketing and selling the development.
The action also follows a series of cases in which TG RERA has intervened over projects promoted without the necessary registration. In such matters, the regulator can examine complaints from affected purchasers and issue directions under the legislation.
For the two buyers involved in the latest case, the authority’s refund order provides a route to recover the money paid towards the plots, together with interest. The direction also places the financial obligation for repayment on the promoter rather than leaving the complainants to pursue recovery solely through a private dispute.
The case highlights the importance of checking the regulatory status of a plotted development before making payments. RERA registration provides prospective buyers with access to project information submitted to the regulator and places statutory obligations on promoters in relation to the development and sale process.
TG RERA’s order does not merely concern the recovery of the buyers’ investment; it also addresses the underlying issue of marketing an eligible project without registration. The authority’s finding therefore places the compliance status of plotted developments under scrutiny alongside the more commonly reported RERA disputes involving residential apartment projects.
The refund and interest are to be paid in accordance with the terms of the TG RERA order. The case reinforces the regulator’s role in providing redress to buyers where real estate projects have been offered without the registration required under the state’s RERA regime.
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