Homebuyer Rights
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Real Estate
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Telangana
TGRERA
Telangana RERA Slaps ₹14.9 Lakh Fine on Developer for Unregistered Housing Project
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed a penalty of ₹14.9 lakh on Bhuvanteza Infrastructures LLP for failing to register its ‘Aura Velimala Phase 1’ project located in Velimala, Sangareddy district. The order holds the developer and its partners jointly and severally liable for violating Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016 (RERA).
TGRERA further directed the developer to refund the amounts collected from 62 homebuyers, along with 11% annual interest. These buyers had entered into “unregistered” agreements to purchase flats that were promised to be delivered by December 2023. However, the project has seen considerable delays, with only 20% of the construction completed as of June 19, 2024.
The homebuyers reported severe financial stress due to the delay, citing the burden of paying both rent for their current accommodations and EMIs on home loans for undelivered flats. According to the agreement, the developer had committed to paying rent from January 2024 if possession was not given on time. Despite several follow-ups, no such payments were made.
Adding to buyer concerns was the fact that the developer had not registered the land in their names, raising fears that the land might be resold to new buyers without notice.
TGRERA concluded that the developer had blatantly violated Section 3(1) of the RERA Act, which prohibits any sale, booking, or marketing of properties in a project without registering it with the Real Estate Regulatory Authority. The authority rejected the developer’s defense that statutory approvals were pending or that registration was in progress, stating that the law does not recognize such provisional justifications.
The order also emphasized that many of the agreements were executed between 2021 and 2023, yet the developer has neither completed the project nor handed over possession. As a result, the developer and its partners must refund all 62 affected homebuyers with interest.
A set of queries has been sent to Bhuvanteza Infrastructures LLP regarding the matter. The article will be updated if a response is received.
