Telangana RERA Imposes 15L Fine on Developer for Non-Compliance
The Telangana Real Estate Regulatory Authority (TG RERA) has slapped a penalty of 14.9 lakh on a real estate developer and its partners for failing to register their project 'Aura Velimala Phase 1' and for misusing funds.
ReraReal EstateTelanganaAura VelimalaHomebuyersReal Estate NewsMay 25, 2025
Additionally, the authority directed the builder to refund the amounts paid by 62 allottees, along with an interest rate of 11%. The complainants, including M Prem Kumar from Dilsukhnagar and others, had entered into unregistered agreements of sale with the respondents. As of June 2024, construction progress on the project remained at a mere 20%, with no significant work done on the A and B blocks.
The complainants alleged that the developer had diverted funds and continued to sell units despite the stagnation on-site. RERA found that the promoter had failed to secure the necessary approvals from the Hyderabad Metropolitan Development Authority (HMDA) before collecting funds, which is a clear violation of Sections 3 and 4 of the Real Estate Act.
RERA also noted that the respondents are currently involved in several criminal cases due to complaints filed against them for siphoning funds. The authority held the respondents jointly and severally liable to refund the amounts collected from buyers, along with statutory interest from the date of the agreement until the refund is made.
Furthermore, RERA ordered the respondents to apply for the registration of the project without delay and restrained them from marketing or selling any units until the registration is approved. Failure to comply with these directives will attract further penalties under Section 63 of the Act.
This decision by TG RERA is a significant step towards ensuring transparency and accountability in the real estate sector, protecting the interests of homebuyers, and maintaining the integrity of the market.
Frequently Asked Questions
What is the penalty imposed by TG RERA on the developer?
The Telangana Real Estate Regulatory Authority (TG RERA) imposed a penalty of 14.9 lakh on the developer for failing to register their project and for misusing funds.
What project is the developer accused of non-compliance with?
The developer is accused of non-compliance with the project 'Aura Velimala Phase 1' in Velimala, Sangareddy district.
What are the main violations committed by the developer?
The main violations include failing to register the project under the Real Estate Act, diverting funds, and continuing to sell units despite construction stagnation.
What is the status of the project as of June 2024?
As of June 2024, the construction progress on the project 'Aura Velimala Phase 1' remained at only 20%, with no significant work done on the A and B blocks.
What actions has RERA taken against the developer?
RERA has ordered the developer to refund the amounts paid by 62 allottees with 11% interest, apply for project registration without delay, and refrain from marketing or selling units until registration is approved.
Related News Articles
Unlocking $48 Billion in Indian Office Space: The Rise of Fractional Ownership
India's fractional ownership market is expected to exceed $5 billion by 2030
Budget 2024: Reviving Affordable Housing - A Sector in Crisis
The real estate sector is seeking 'high-impact' measures to revive affordable housing, including special schemes, tax breaks, and revised pricing definitions.
Can Urbanization and Nature Coexist? A New Vision for Cities
As cities expand, natural spaces are dwindling. But is it possible to create a symbiosis between urbanization and nature? We explore the possibilities.
Market Sentiment Remains Robust Amidst Fresh IPOs: Anand Tandon
Anand Tandon shares his insights on the current market sentiment, IPOs, and sectors to watch out for.
MahaRERA Orders Developers to Refund Buyers Amid Complaints Over Pending Home Sales
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has taken action against developers in Pune, a region heavily affected by pending home sales. MahaRERA has ordered developers to refund buyers to address the growing complaints.
Tayal Corp: Pioneering Architectural Excellence in Pune's Real Estate Market
Led by Ar. Sumit Tayal, Tayal Corp. is not just another real estate developer; it is a collective of thinkers, visionaries, and problem-solvers. Discover how this innovative company is transforming the landscape of Pune's real estate industry.