RERA Exposes Major Real Estate Frauds in Telangana
Hyderabad: Three recent rulings by the Telangana Real Estate Regulatory Authority (TGRERA) have exposed serious violations by builders, including unregistered projects, long delays in possession, and lack of basic infrastructure, leaving homebuyers in distress. In two of the three cases, developers refused to appear before the authority, leading to ex parte decisions.
In the first case, Bhuvanteza Infra Projects used a fake RERA number in brochures to sell flats without any approvals. The builder relied solely on a General Power of Attorney (GPA) from landowners, without any legal permissions to construct. A buyer, who paid Rs 47 lakh for a flat in the project, was left stranded. RERA imposed a penalty of Rs 76.4 lakh and ordered a refund with 10.8 per cent interest.
In the second case, Maha Infra Developers sold plots in the “Suvarna Sampada 2” venture but carried out no development work. The plots were later transferred to Suvarnabhoomi Infra without completing the promised layout, keeping buyers waiting for over six years. While the two firms blamed each other, RERA held both responsible, imposed penalties, and ordered completion of the development within 60 days.
In the third case, Edifice Projects Pvt. Ltd. failed to register its villa project or hand over possession to landowners, even years after a development agreement was signed in 2015. The landowners, based in Bengaluru, complained of substandard construction and prolonged delay. RERA imposed a penalty of Rs 15.2 lakh, directed the developer to register the project immediately, and rectify the construction defects.
“We are seeing cases where builders are selling plots or flats using a GPA without securing approvals or even starting work. In some instances, they are transferring plots to other firms without buyer consent or completing promised development,” said Srinivasa Rao, a senior RERA official. “Do not trust just brochures or what builders say. Always verify project registration on the RERA website and read the agreement of sale carefully before making any payment,” he cautioned.
