Telangana RERA Fines Sanali Housing ₹4.2 Lakh for Promoting Unregistered Project in Hyderabad's Shaikpet

In a significant enforcement action, the Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a penalty of ₹4.27 lakh on Sanali Housing Projects Pvt Ltd for promoting and advertising a real estate project in Hyderabad without mandatory registration under the Real Estate (Regulation and Development) Act, 2016. The project in question, Sanali Pinnacle, is a mixed-use development located in the Shaikpet area of Hyderabad.

The penalty order, issued in April 2025, comes after TG-RERA found that the developer had advertised the project without securing the requisite approvals from the Greater Hyderabad Municipal Corporation (GHMC) or registration under TG-RERA. This constitutes a clear violation of Sections 3 and 4 of the RERA Act, which mandate that no real estate project can be marketed, advertised, or offered for sale without registration.

Key Violations Identified

The developer was found to have promoted the project across multiple platforms, including its official website, online real estate portals, and through physical advertisement boards installed at the project site. The website referred to Sanali Pinnacle as an "ongoing project" and described it as comprising “exquisitely crafted residences for exceptional 40,” despite the lack of any approvals or registration.

The authority also took note of promotional boards at the project site displaying the message “Sanali Coming Soon…,” further solidifying the case for illegal advertising and marketing activity.

While defending its actions, Sanali Housing Projects argued that mere mention of the project name on its website did not constitute an advertisement, as it lacked details such as location, pricing, and unit specifications. However, TG-RERA rejected this defence, citing Section 2(b) of the RERA Act, which defines any publicly shared information about a real estate project—irrespective of the inclusion of material specifics—as an advertisement.

RERA’s Directive to Developer

The TG-RERA order not only imposes a financial penalty but also includes a clear directive to Sanali Housing Projects to immediately register the Sanali Pinnacle project under Section 3 of the RERA Act. Until the project is formally registered, the developer is barred from any form of promotion, advertisement, booking, or sale activity.

The authority emphasized that in the absence of registration, the developer is legally restrained from inviting any expressions of interest or entering into agreements with prospective buyers.

Case Background

The case was initiated based on complaints filed by the landowners involved in the development agreement with Sanali Housing Projects, dating back to March 2021. According to the agreement, development was to commence only after obtaining all necessary clearances from GHMC. However, over three years later, the developer had failed to secure the required permissions or provide any formal update to the landowners.

The complainants further alleged that despite this inaction, the developer proceeded to market the project through various channels, misleading potential homebuyers and investors.

This order sends a strong message to real estate developers across Telangana about the strict enforcement of RERA regulations. In recent months, TG-RERA has stepped up its monitoring and regulatory actions, particularly against developers who have bypassed the mandatory registration process or misled consumers through unauthorised promotions.

The authority reiterated that registration with RERA is not a formality but a legal requirement designed to protect the interests of homebuyers by ensuring transparency, accountability, and timely delivery of projects.

The industry experts believe that this case could serve as a precedent for similar violations. It also underscores the importance of due diligence by homebuyers when evaluating real estate investments.

TG-RERA continues to encourage buyers and landowners to report instances of non-compliance and stressed the need for all stakeholders—especially developers and promoters—to align their operations with the regulatory framework laid down under the RERA Act.