Telangana RERA Fines Builder ₹14.9 Lakh For Non-Registration, Orders Refund To 62 Flat Buyers

The Telangana Real Estate Regulatory Authority (TGRERA) has imposed a fine of ₹14.9 lakh on Bhuvanteza Infrastructures LLP for failing to register their 'Aura Velimala Phase 1' project in Velimala, Sangareddy district, under the Real Estate (Regulation and Development) Act, 2016.

According to the TGRERA order, the developers were found guilty of violating Sections 3 and 4 of the RERA Act by not registering the project. The authority has directed the developer and its partners to jointly and severally refund the amounts collected from 62 homebuyers, along with 11% annual interest.

The complaint arose after the buyers, who had signed unregistered agreements with the developer, alleged major delays in construction. As per the agreements, the flats were to be delivered by December 2023. However, by June 19, 2024, only 20% of the construction was completed, raising serious concerns among the buyers. TGRERA noted the developer had not transferred the land ownership to the buyers, leading to fears that the property could be sold to other parties.

Upon reviewing documents and submissions, TGRERA found the developer had clearly breached Section 3(1) of the Act by launching and advertising the project without registration. The authority emphasized that no promoter is permitted to market, sell, or offer real estate units without obtaining prior RERA approval.

TGRERA rejected the developer's argument that pending statutory approvals justified the delay in registration. "The Act provides no exception for provisional or pending registration," the authority ruled.

Highlighting that most agreements were signed between 2021 and 2023, TGRERA concluded the developer failed to complete the project or deliver possession and must now refund all 62 buyers with applicable interest.