TG-RERA Imposes ₹14.9 Lakh Fine on Developer for Unregistered Project in Velimala, Sangareddy
The Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a penalty of ₹14.9 lakh on a real estate developer and its partners for failing to register their project, "Aura Velimala Phase 1," in Velimala, Sangareddy district, as required under the Real Estate (Regulation and Development) Act, 2016. The project registration is mandatory under the Act to protect homebuyers and ensure transparency.
TG-RERA’s order also directs the builder to refund the amounts paid by 62 allottees along with 11% interest. The complainants, led by M Prem Kumar of Dilsukhnagar, stated that they entered into unregistered sale agreements with the builder. The builder had promised possession of the apartments by December 2023, but as of June 2024, construction progress was only at 20%.
According to the complainants, despite multiple attempts to communicate with the developer, they received either vague replies or no response at all. The buyers raised concerns about the diversion of funds, pointing out that sales continued even though construction had stalled. Notably, structural work on blocks A and B had not commenced.
TG-RERA conducted a detailed inquiry into the matter and found that the developer had failed to obtain necessary approvals from the Hyderabad Metropolitan Development Authority (HMDA) before collecting funds from buyers. This is a clear violation of Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016.
Further investigation revealed that the developer and partners are involved in several criminal cases related to complaints of siphoning off funds. TG-RERA noted that these parties are currently not available to complete the construction or hand over the apartments to the buyers.
In its ruling, TG-RERA held the respondents jointly and severally liable to refund the full amounts collected from the buyers. The refund must include statutory interest calculated from the date of the agreement until the refund is made. This move is aimed at safeguarding the financial interests of the homebuyers.
TG-RERA also ordered the developer to apply for project registration without further delay. Until the registration is approved, the developer is prohibited from marketing, advertising, or selling any units in the project. Failure to comply with these directives will attract further penalties under Section 63 of the Act, which allows for additional fines or imprisonment.
The complainants had entered into agreements based on assurances from the developer, but the lack of registration and approvals from relevant authorities meant that the project was not legally sanctioned. TG-RERA’s intervention highlights the importance of complying with regulatory norms designed to protect buyers.
Image source- telangana.gov.in
