Telangana RERA Clamps Down on Unregistered Real Estate Agents
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed penalties on unregistered real estate agents for misrepresenting a project in Kokapet, Hyderabad.
ReraReal EstateTelanganaPenaltiesTransparencyReal EstateJun 01, 2025
The company alleged that Sikha Balaraju, along with his firms Infy Projects and Bell Square, falsely represented themselves as authorised agents of the builder without a formal agreement or the necessary registration required under the Real Estate (Regulation and Development) Act, 2016.
According to the complaint, Balaraju approached the builder in 2022, claiming he had potential clients interested in purchasing office spaces in the tech park. While there were initial discussions, no agreement was signed. Despite this, Balaraju and his companies proceeded to deal with buyers, collected funds, and misrepresented themselves as the marketing heads of the project.
After several hearings, RERA concluded that Balaraju and his companies acted as agents but failed to register with the Authority, thereby violating the RERA Act. The Authority imposed a penalty of Rs. 3.69 lakh on them and barred them from facilitating any real estate transactions in RERA registered projects without proper registration.
The Real Estate (Regulation and Development) Act, 2016, was introduced to protect the interests of homebuyers and promote transparency in the real estate sector. It mandates that all real estate agents and projects must be registered with the respective RERA authorities. This ensures that buyers are not misled and that transactions are conducted in a fair and transparent manner.
The TGRERA's decision sends a strong message to unregistered agents and developers, reinforcing the importance of compliance with the RERA Act. The Authority has been proactive in monitoring and regulating the real estate market in Telangana, ensuring that all stakeholders adhere to the regulations.
Developers and buyers are advised to verify the registration status of agents and projects before engaging in any transactions. This can be done by checking the RERA website or contacting the RERA office directly. By doing so, they can avoid potential legal issues and ensure a smooth and secure transaction process.
The TGRERA's actions are a step towards creating a more regulated and trustworthy real estate market in Telangana. Homebuyers and investors can have greater confidence in the projects they choose, knowing that they are protected by stringent regulatory measures. The Authority's efforts to crack down on unregistered activities are crucial for maintaining the integrity of the real estate sector and protecting the interests of all stakeholders.
Frequently Asked Questions
What is the Real Estate (Regulation and Development) Act, 2016?
The Real Estate (Regulation and Development) Act, 2016, is a law introduced to protect the interests of homebuyers and promote transparency in the real estate sector. It mandates that all real estate agents and projects must be registered with the respective RERA authorities.
What is the Telangana Real Estate Regulatory Authority (TGRERA)?
The Telangana Real Estate Regulatory Authority (TGRERA) is the regulatory body responsible for overseeing and enforcing the provisions of the RERA Act in the state of Telangana. It ensures that all real estate projects and agents comply with the law.
What penalties can be imposed for non-compliance with RERA?
Non-compliance with RERA can result in various penalties, including fines, suspension of projects, and bans on facilitating real estate transactions. The specific penalties depend on the severity of the violation.
How can homebuyers verify the registration status of a real estate agent or project?
Homebuyers can verify the registration status of a real estate agent or project by checking the RERA website or contacting the RERA office directly. This ensures that they are dealing with legitimate and registered entities.
What is the importance of RERA in the real estate sector?
RERA plays a crucial role in the real estate sector by promoting transparency, protecting the interests of homebuyers, and ensuring that all transactions are conducted fairly and legally. It helps in maintaining the integrity of the market and building trust among stakeholders.
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