Hyderabad: TG RERA Imposes ₹4.74 Cr Fine on Bharati Builders for Illegal Pre-Launch Scheme

Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) has imposed a fine of ₹4,74,17,729 on Bharati Builders Private Limited for collecting money from homebuyers through an illegal pre-launch scheme and violating multiple provisions of the Real Estate (Regulation and Development) Act. The action relates to the “Bharati Lake View Apartments” project located in Kompally, Medchal–Malkajgiri district.

After examining complaints filed by buyers, the authority strongly criticized the builder’s conduct and declared the firm a “defaulting promoter.” According to TG RERA, the promoter launched pre-launch offers in 2021 and collected large sums from buyers while promising to complete the project within 24 months.

However, the builder allegedly collected funds without obtaining mandatory statutory approvals or RERA registration and failed to initiate any construction activity at the project site. The authority noted that such actions amount to serious violations of the Real Estate Act and undermine the protections provided to homebuyers.

Observing that there were no signs of the project being completed, TG RERA stated that buyers should not be forced to continue in the project. The authority directed the promoter to refund the entire amount paid by buyers, along with applicable interest, within 60 days in accordance with Rule 15 of the Telangana Real Estate Rules, 2017. Another entity associated with the project, Sri Bharati, has also been treated as a promoter, and both entities have been jointly directed to make the refund.

Apart from ordering refunds, TG RERA imposed an additional penalty of ₹3,55,63,297 on Bharati Builders Private Limited and officially declared the company a defaulting promoter. The authority clarified that this penalty is in addition to a previous fine of ₹1,18,54,432 imposed earlier for similar violations, taking the total penalty to ₹4.74 crore.

TG RERA warned that pre-launch offers in projects without RERA registration are strictly prohibited under law. Buyers who invest in such schemes risk losing several important legal and financial protections. In unregistered projects, the authority cannot monitor construction progress, mandatory safeguards like mortgaging 10% of the project land with the planning authorities may not exist, and the escrow account system, which ensures proper use of buyer funds, is not applicable.

The authority advised buyers to verify the RERA registration status of any project on the official portal (https://rera.telangana.gov.in) before making financial commitments.