Hyderabad Real Estate Scam: Buyers Sold Undeveloped Plots with No Amenities

Hyderabad: A real estate scam is unfolding where buyers are being sold undeveloped plots without the promised amenities like roads, electricity, and parks. Suvarnabhoomi Developers, who have been the target of multiple complaints, are among the key player

Real Estate ScamUndeveloped PlotsReraHyderabadSuvarnabhoomi DevelopersReal EstateJan 09, 2025

Hyderabad Real Estate Scam: Buyers Sold Undeveloped Plots with No Amenities
Real Estate:Hyderabad A concerning real estate scam has come to light in Hyderabad, where buyers are being sold undeveloped plots of land that lack essential amenities such as roads, electricity, and parks.
One of the main culprits in this fraudulent activity is Suvarnabhoomi Developers, who have faced six complaints registered with the Real Estate Regulatory Authority (RERA).

Incidentally, RERA-registered developers like Maha Infra and Axis Constructions often purchase land, secure layout approvals from the Hyderabad Metropolitan Development Authority (HMDA), and then sell these undeveloped plots to other developers such as Suvarnabhoomi.
These subsequent developers, like Suvarnabhoomi, often sell the plots without taking responsibility for developing the necessary infrastructure.

The agreements between Suvarnabhoomi Developers and their buyers often do not include any details about infrastructure development.
Unaware of these crucial details, many buyers end up signing agreements without thoroughly reviewing them, leaving them waiting for years for the promised amenities.
One such buyer, who purchased a plot in 2019, is still waiting for any development to take place, making it impossible for them to proceed with construction.

Srinivas Rao, a member of the Telangana State Real Estate Regulatory Authority (TG RERA), has received numerous complaints about delays in infrastructure development.
Despite the complaints, developers like Suvarnabhoomi continue to sell plots while slowly working on the layout development.

A significant issue is the lack of legal commitments in the agreements, which makes it extremely challenging for buyers to hold developers accountable for their defaults.
Rao emphasized that developers are legally obligated to develop layouts and deliver plots with all amenities in place before selling them.
The failure to do so is a clear violation of RERA norms.

To avoid falling victim to such scams, Rao advised buyers to carefully review the agreements and ensure that the developers commit to completing the layout within a specific timeframe.
‘The agreements must include a clause detailing the timeline for completing infrastructure.
Unfortunately, Suvarnabhoomi’s agreements only mention the sale of the plot, leaving buyers at a significant legal disadvantage,’ he added.

Buyers are urged to remain vigilant and seek legal advice when purchasing plots to protect their investments from fraudulent developers.

Frequently Asked Questions

What is the main issue with the plots sold by Suvarnabhoomi Developers?

The main issue is that the plots sold by Suvarnabhoomi Developers are undeveloped and lack essential amenities such as roads, electricity, and parks.

How many complaints have been registered against Suvarnabhoomi Developers with RERA?

Six complaints have been registered against Suvarnabhoomi Developers with the Real Estate Regulatory Authority (RERA).

What are RERA-registered developers like Maha Infra and Axis Constructions involved in?

RERA-registered developers like Maha Infra and Axis Constructions are involved in purchasing land, obtaining layout approvals, and then selling undeveloped plots to other developers such as Suvarnabhoomi Developers.

Why are buyers at a legal disadvantage when they purchase plots from Suvarnabhoomi Developers?

Buyers are at a legal disadvantage because the agreements with Suvarnabhoomi Developers do not include any legal commitments for infrastructure development, making it difficult to hold the developers accountable.

What advice does Srinivas Rao give to buyers to avoid falling victim to such scams?

Srinivas Rao advises buyers to carefully review the agreements, ensure that the developers commit to completing the layout within a specific timeframe, and include a clause detailing the timeline for completing infrastructure.

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