Telangana RERA Imposes Rs. 3.69 Lakh Penalty on Unregistered Real Estate Agents
The Telangana Real Estate Regulatory Authority (RERA) has imposed a penalty of Rs. 3.69 Lakhs on Mr. Sikha Balaraju and his companies for acting as real estate agents without the required registration under the RERA Act, 2016.
Real EstateReraTelanganaPenaltyUnregistered AgentsReal EstateJun 08, 2025
According to Section 9(1) of the RERA Act, no real estate agent is allowed to facilitate the sale or purchase of any plot, apartment, or building in a registered real estate project unless they have obtained registration from the RERA Authority.
The complainant is the owner and promoter of a RERA-registered commercial project named “Poojitha Tech Park,” located in Ranga Reddy District, Telangana. The complainant stated that only two other stakeholders have rights over the project and no one else is authorized to sell or transfer any part of it.
In 2022, Mr. Sikha Balaraju (Respondent No. 1) approached the complainant and claimed that he had several clients interested in purchasing commercial spaces in the project. He expressed a desire to mediate sales. Although both parties discussed the terms, no formal agreement was signed. Later, Mr. Sikha Balaraju introduced some prospective buyers, and the complainant entered into sale agreements with them.
The complainant contended that Mr. Sikha Balaraju, through his companies M/s Infy Projects (Respondents No. 2) and M/s Bell Square Pvt Ltd (Respondents No. 3), falsely claimed themselves to be RERA-registered agents of the complainant. The complainant stated that it had never authorized them to act on its behalf.
The complainant also contended that the respondents quoted higher prices to buyers and misused the extra amounts. One buyer even reported that the respondents falsely claimed to be representatives of the complainant. When the complainant tried to contact them, Mr. Sikha Balaraju did not respond.
Later, a buyer who had signed a sale agreement filed a RERA complaint against the complainant, which the complainant believes arose due to the respondents' fraudulent acts. The complainant further contended that the respondents forged signatures and receipts and, since they were not registered agents under Section 9, they are liable to be penalized.
Therefore, the complainant approached the Authority seeking a penalty against the respondents, cancellation of any RERA registration held by them, a ban on their future operations, and a refund of all misappropriated amounts.
The Authority issued notices to all respondents. Respondent Nos. 1 and 2 appeared through their lawyers. Respondent No. 3 did not appear even after receiving the notice. None of the respondents filed any reply or made any submissions. Therefore, the Authority proceeded ex-parte.
To decide whether the respondents could be treated as real estate agents under the RERA Act, the Authority referred to Section 2(zm), which defines a real estate agent as anyone who introduces buyers and sellers and earns money for such services. Under the RERA framework, any person or company that falls under this definition shall register under Section 9.
The Authority also considered the contents of the complaint, facts from related complaints, and the statement of Mrs. K Vijaya Lakshmi (Respondent No. 4) who said that Mr. Sikha Balaraju entered into a transaction with him on behalf of the complainant.
Based on these materials, the Authority concluded that Mr. Sikha Balaraju acted on behalf of the complainant, engaged in the transaction, and received monetary consideration from Mrs. K Vijaya Lakshmi towards the purchase of the flat. Therefore, Respondents No. 1, 2, and 3 fall within the definition of a “real estate agent.”
The Authority held them jointly and severally liable for violating Section 9 of the RERA Act and directed them to pay a penalty of Rs. 3,69,600.
Additionally, the Authority directed Mr. Sikha Balaraju and his two companies to not act as agents or assist in selling or buying any property in a registered real estate project without registration under Section 9. If they continue to act without registration, strict action will be taken. They may face a daily penalty that can go up to 5% of the project cost under Section 65 of the Act.
Case – M/s Viana Homes Pvt. Ltd. Versus Sri Sikha Balaraju & others
Citation - Complaint No.117 of 2024
Frequently Asked Questions
What is the RERA Act, 2016?
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a comprehensive legislation in India that aims to regulate the real estate sector and protect the interests of homebuyers. It ensures transparency, accountability, and timely completion of projects.
What is the penalty for acting as a real estate agent without registration under RERA?
Under the RERA Act, any person or company acting as a real estate agent without registration can be penalized. The penalty can range from a fine to a daily penalty of up to 5% of the project cost, and in severe cases, the person or company can face legal action.
Who can file a complaint under RERA?
Any homebuyer, promoter, or real estate agent who feels their rights have been violated or who has evidence of a violation of the RERA Act can file a complaint with the RERA Authority.
What is the role of the RERA Authority?
The RERA Authority is responsible for enforcing the RERA Act, registering real estate projects and agents, and resolving disputes between promoters and homebuyers. It also ensures compliance with the provisions of the Act and takes action against violators.
How can a real estate agent get registered under RERA?
To get registered under RERA, a real estate agent must apply to the RERA Authority and provide the required documents, including proof of identity, address, and details of the business. The application must be accompanied by the prescribed fee, and the agent must comply with the guidelines and conditions set by the RERA Authority.
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