Hyderabad: Pranith Koncepts Barred from Selling Unregistered Flats
Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has taken stern action against Pranith Koncepts Pvt. Ltd., a real estate developer, by restraining it from marketing, selling, or collecting money for flats in several unregistered blocks of its 'Pranith Koncepts Ambience' project. The Authority has also initiated penalty proceedings over alleged violations of the Real Estate (Regulation and Development) Act, 2016 (RERA).
The interim order was passed in response to four complaints (Nos. 425 to 428 of 2025) filed by allottees of flats in the 'Pranith Koncepts Ambience' project. The complainants alleged that despite executing agreements of sale and paying substantial amounts, with many servicing housing loans through EMIs and pre-EMIs, construction in the registered blocks had not progressed beyond the structural stage. They also mentioned that repeated assurances of delivery by December 2024 were not honored.
The project is registered with TG RERA under Registration No. P02400006122, but only for Blocks A, C, and D. However, serious allegations were made that the promoter had advertised, marketed, and sold flats in Blocks B, E, F, and G, and additional floors, which are not covered under the said registration. Citing Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, the Authority observed that no promoter can advertise, market, book, or sell any apartment in a real estate project without registering that project or part of it with the Regulatory Authority. Such violations, if established, attract penalties under Section 59 of the Act, including monetary penalties up to 10 percent of the estimated project cost and further consequences in case of continued default.
At the interim stage, TG RERA recorded the following prima facie observations: the project stands registered only for Blocks A, C, and D; there are serious allegations of marketing and selling flats in unregistered Blocks B, E, F, and G; construction in the registered blocks is also delayed; and the promoter has not facilitated the formation of the Association of Allottees as mandated under Section 11(4)(e) of the Act. The Authority noted that continued marketing of unregistered portions would defeat the objective of the Act, which aims to ensure transparency, financial discipline, and protection of homebuyers.
Exercising its powers under Section 36 of the Act, TG RERA issued the following directions pending final adjudication: the promoter, its directors, agents, and marketing agencies are restrained from advertising, selling, booking, or collecting any amount in respect of Blocks B, E, F, and G, or additional floors not covered under the registration, until separate registration is obtained. The TG RERA Secretary has been directed to initiate penalty proceedings under Section 59 and other applicable provisions for alleged violations relating to unregistered blocks.
The promoter has been ordered to file an updated stage-wise construction report of Blocks A, C, and D, a financial utilization statement as required under the Act, and a revised completion timeline supported by an affidavit within two weeks. The Authority also observed that the promoter had failed to take effective steps to enable the formation of the Association of Allottees within the prescribed time. To safeguard the collective interests of buyers, TG RERA permitted and directed the allottees to initiate steps for forming the Association in accordance with applicable laws. The promoter has been instructed to extend full cooperation and furnish necessary documents, including the list of allottees and project details, without delay. The interim order will remain in force until further orders or until proper registration is obtained for the unregistered portions of the project.
