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

Telangana RERA Imposes 15L Fine on Developer for Non-Compliance
Real Estate News:The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a significant penalty of 14.9 lakh on a real estate developer and its partners for failing to register their project ‘Aura Velimala Phase 1’ in Velimala, Sangareddy district, under the provisions of the Real Estate (Regulation and Development) Act, 2016. This decision comes after a series of complaints from aggrieved buyers who were promised possession by December 2023.

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.

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