TG RERA orders action against Pacifica Constructions

Penalty proceedings initiated over pre-registration flat allotments

Property Pulse

The Telangana Real Estate Regulatory Authority (TG RERA) has directed the initiation of penalty proceedings against Pacifica Constructions for allegedly booking and allotting flats before obtaining mandatory project registration, holding that the practice violates the provisions of the Real Estate (Regulation and Development) Act.

The action relates to the developer's Aavaas Hyderabad project at Miyapur. During its inquiry, TG RERA found that a flat had been booked and allotted in 2017, while the project received RERA registration only in 2019. Under the Act, developers are prohibited from advertising, booking, selling or allotting units before securing project registration.

The case arose from a complaint filed by homebuyers Nitika Sharaf and Vishal Sharaf of Bachupally. They stated that they entered into a sale agreement in April 2019 after being assured that possession would be handed over within 60 months.

They alleged that the apartment was not delivered within the promised timeline and also raised concerns over construction quality, including defects in walls, ceilings and doors. The buyers further alleged that the developer sought to recover penalties related to a previous allottee, attempted to levy charges for a club membership that was initially promised free of cost, increased maintenance charges and altered the basement parking layout from the approved plan.

Pacifica Constructions denied the allegations, stating that the project timeline had been extended due to the Covid-19 pandemic. The company submitted that it had obtained the Occupancy Certificate in September 2025 and executed the registered sale deed in December 2025.

It also argued that the buyers were not entitled to compensation after accepting possession of the flat. TG RERA observed that, since the registered sale deed had already been executed, the buyers' claim for possession no longer survived.

However, the Authority ruled that penalties relating to a previous allottee could not be recovered from the present purchasers. At the same time, it held that booking and allotting the flat before obtaining RERA registration was a violation of the Act and ordered the initiation of penalty proceedings against the developer.

RERA Action

• TG RERA ordered penalty proceedings against Pacifica Constructions.
  
• Flat was booked before the project received RERA registration.
  
• Authority barred recovery of previous allottee's penalties from current buyers.
  
• Buyers' possession claim did not survive after execution of the sale deed.
  
• Order reinforces mandatory project registration before bookings.