Paradise Peak Penalized by Telangana RERA for Failing to Register 12-Acre Project
In a significant move, the Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of Rs 11.5 lakh on Paradise Peak Private Limited for failing to register its 12-acre layout project with the authority, as required under the Real Estate (Regulation and Development) Act, 2016. This decision comes after a complaint was filed by a buyer, M Santhosh, who raised concerns about the developer’s irregularities in selling plots without the necessary registration.
The project in question began in 2018 when Paradise Peak entered into a development agreement with a landowner for a project in the Zaheerabad municipality, located in Sangareddy district. The developer received approval for the layout from the Department of Town and Country Planning (DTCP) in September 2019. Despite this approval, the developer proceeded to sell around 550 plots without registering the project with TG RERA, violating the mandatory registration requirement of the Real Estate Act.
The failure to register the project exposed buyers to financial and legal risks. By not following the required registration process, Paradise Peak essentially bypassed a safeguard that protects buyers from potential issues related to ownership, project completion, and developer obligations. The complaint also pointed out that there were ongoing disputes between the developer and the landowner, which led to arbitration proceedings, further complicating the situation. These unresolved disputes raised concerns about the potential risks faced by buyers, who could find themselves entangled in legal disputes without the protection of a registered project.
During the hearing on November 20, the complainant appeared before the authority, while the developer failed to attend. TG RERA, led by Chairperson N Satyanarayana (retired IAS), along with members K Srinivasa Rao and Laxmi Narayana Jannu, determined that the developer had clearly violated the provisions of the Real Estate Act. Although the complainant did not qualify as an aggrieved party due to a lack of legal injury, the authority concluded that the violations committed by Paradise Peak warranted action.
The Real Estate (Regulation and Development) Act requires that projects exceeding certain thresholds must be registered with the relevant authority before any advertising, marketing, or sale of plots can take place. In this case, Paradise Peak exceeded the statutory threshold, and the developer failed to meet the registration requirements. This breach of the law led to the imposition of the penalty.
As a result, TG RERA directed Paradise Peak to pay the penalty of Rs 11.5 lakh within 30 days. Additionally, the developer was instructed to apply for registration under Section 4 of the Real Estate Act within 15 days. Until the registration process is completed, the developer is strictly prohibited from advertising, marketing, or selling any plots related to the project.
This action highlights the importance of compliance with the Real Estate (Regulation and Development) Act and serves as a reminder to developers about the legal obligations they must meet. Registration under TG RERA ensures that developers comply with construction, safety, and financial regulations, providing a level of protection to buyers. Without this registration, buyers are at risk of being involved in projects that could face legal disputes, delays, or even abandonment.
Image source- telangana.gov.
