TG RERA penalises sale of unregistered housing project

The Telangana Real Estate Regulatory Authority (TG RERA) penalised a developer and landowners for selling a flat in an unregistered housing project, violating the RERA Act.

tg-rera-unregistered-project-penalty

Developer and landowners fined; buyer's refund plea rejected

Property Pulse

The Telangana Real Estate Regulatory Authority (TG RERA) has imposed penalties on a developer and the landowners of a Hyderabad housing project for selling a flat without obtaining mandatory RERA registration. However, the Authority declined the homebuyer's request for a refund of nearly ₹51 lakh paid towards the apartment.

According to the order, the developer sold a flat in the project before securing registration under the Real Estate (Regulation and Development) Act. After learning that the project had not been registered with TG RERA, the purchaser approached the Authority seeking a refund of the amount paid.

After examining the case, TG RERA held that marketing and selling units before obtaining RERA registration is a clear violation of the Act. The Authority observed that both the developer and the landowners were responsible for the transaction and imposed penalties on them for the breach of statutory provisions.

While taking action against the respondents, TG RERA rejected the buyer's claim for a refund. The Authority clarified that the facts of the case did not entitle the purchaser to seek repayment under the relevant provisions of the RERA Act. Accordingly, while penalties were imposed for the regulatory violation, no direction was issued to refund the amount paid by the buyer.
The order reiterates that developers must obtain RERA registration before advertising, marketing, booking or selling flats in projects that fall within the ambit of the Act. The requirement is intended to improve transparency, protect homebuyers and ensure regulatory oversight of residential developments.

TG RERA has advised prospective homebuyers to verify a project's registration status before making any purchase. Buyers can check the official RERA portal for details such as the registration number, statutory approvals, construction progress and expected completion timeline.

RERA Compliance

Flat sold before obtaining mandatory TG RERA registration.
Developer and landowners penalised for violating the Act.
Buyer's refund claim of nearly ₹51 lakh rejected.
Buyers should verify project registration before booking a property.