RERA Orders Refund and Penalty for Developer’s Violation of Real Estate Laws

The Telangana State Real Estate Regulatory Authority (RERA) has directed Bhuvanteza Infra Projects Pvt. Ltd to refund Rs 32 lakh to a homebuyer along with 11.05% annual interest. Additionally, a penalty of Rs 11.46 lakh was imposed on the developer for vi

ReraReal EstatePenaltiesRefundsRegulatory AuthorityReal EstateJan 12, 2025

RERA Orders Refund and Penalty for Developer’s Violation of Real Estate Laws
Real Estate:HYDERABAD The Telangana State Real Estate Regulatory Authority (RERA) has ordered Bhuvanteza Infra Projects Pvt.
Ltd to refund Rs 32 lakh to a homebuyer along with 11.05% annual interest.
This decision was made after the developer failed to complete and deliver a housing project as promised.
The authority also imposed a penalty of Rs 11.46 lakh on the developer for violating real estate laws.

The case was filed by Cheruvu Gnana Prasad, who had purchased a flat in the ‘EVK-AURA’ project at Velimela in 2020 for Rs 32 lakh.
Despite paying the full amount, the developer neither completed the construction work nor handed over the flat within the promised time.
The developer also forced Prasad to sign a development agreement, changing his status from a homebuyer to a landowner, which violated RERA rules, Prasad alleged.

Upon reviewing the case, RERA found that the developer had not obtained the necessary building permissions and the project was not registered with the regulatory authority.
The developer failed to appear for hearings despite being notified.
RERA then directed the builder to refund the full amount paid by the complainant with interest and pay a penalty of Rs 11.46 lakh to RERA.

The authority also instructed the builder to register the project immediately and stop all sales or promotions until the registration process is completed.
The complainant’s request for possession of a partially constructed flat was denied due to a lack of clarity about third-party claims on the property.
However, RERA allowed Prasad to seek further compensation through a separate legal process.

The Telangana State Real Estate Regulatory Authority (RERA) is a government body established to regulate and promote the real estate sector in Telangana.
It ensures transparency, accountability, and timely delivery of projects to homebuyers, protecting their interests and ensuring compliance with real estate laws.

This case highlights the importance of adherence to regulatory norms and the consequences for non-compliance.
It serves as a warning to developers to ensure all necessary permissions and registrations are in place before commencing any real estate projects.

Frequently Asked Questions

What is the Telangana State Real Estate Regulatory Authority (RERA)?

The Telangana State Real Estate Regulatory Authority (RERA) is a government body established to regulate and promote the real estate sector in Telangana. It ensures transparency, accountability, and timely delivery of projects to homebuyers, protecting their interests and ensuring compliance with real estate laws.

What was the amount of the refund and penalty imposed by RERA in this case?

RERA ordered Bhuvanteza Infra Projects Pvt. Ltd to refund Rs 32 lakh to the homebuyer along with 11.05% annual interest. Additionally, a penalty of Rs 11.46 lakh was imposed on the developer for violating real estate laws.

Why did the complainant file the case against Bhuvanteza Infra Projects Pvt. Ltd?

The complainant, Cheruvu Gnana Prasad, filed the case because the developer failed to complete and deliver the promised flat within the agreed time frame. The developer also forced him to sign a development agreement, changing his status from a homebuyer to a landowner, which violated RERA rules.

What actions did RERA take against the developer?

RERA directed the builder to refund the full amount paid by the complainant with interest, pay a penalty of Rs 11.46 lakh, register the project immediately, and stop all sales or promotions until the registration process is completed.

Can the complainant seek further compensation?

Yes, RERA allowed the complainant to seek further compensation through a separate legal process, as the request for possession of a partially constructed flat was denied due to a lack of clarity about third-party claims on the property.

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