RERA Exposes Major Real Estate Frauds in Telangana
Three recent rulings by the Telangana Real Estate Regulatory Authority (TGRERA) highlight serious violations by builders, including unregistered projects, long delays, and lack of infrastructure, causing distress to homebuyers.
Real Estate FraudTgreraHomebuyersBuildersRera PenaltiesReal EstateJul 26, 2025
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.
Frequently Asked Questions
What is the role of TGRERA in regulating real estate projects?
The Telangana Real Estate Regulatory Authority (TGRERA) is responsible for regulating and promoting the real estate sector by ensuring transparency, accountability, and timeliness in real estate projects. It enforces rules and regulations to protect the interests of homebuyers and penalizes developers for violations.
What are some common violations by builders that TGRERA addresses?
Common violations by builders include selling unregistered projects, long delays in possession, lack of basic infrastructure, using fake RERA numbers, and transferring plots without completing promised development.
What actions can homebuyers take to protect themselves from real estate fraud?
Homebuyers should verify project registration on the RERA website, read the agreement of sale carefully, and ensure that the builder has all necessary approvals and permissions. They should also be cautious of brochures and verbal promises and seek legal advice if needed.
What penalties can TGRERA impose on developers for violations?
TGRERA can impose penalties such as fines, refund of payments with interest, and orders to complete development within a specified time frame. Developers can also be directed to register projects and rectify construction defects.
How can homebuyers report complaints to TGRERA?
Homebuyers can report complaints to TGRERA by filing a complaint on the TGRERA website or by visiting their office. They should provide all relevant documents and details of the violation to support their complaint.
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