Telangana RERA Orders Hyderabad Builders to Refund Customers with Interest for Project Delays
The Telangana Real Estate Regulatory Authority (RERA) has taken action against two Hyderabad-based real estate firms for failing to complete a housing project on time and violating regulatory norms.
Real EstateReraProject DelaysRefundsHomebuyersReal EstateJun 24, 2025
Mercy Thanakachan, a resident of Secunderabad, had entered into an agreement on January 5, 2021, to purchase a house in the Happy Homes-2 project. She paid Rs 21.20 lakh upfront, with the understanding that the project would be completed and the house handed over within 36 months. However, construction never began.
Without her consent, her agreement was shifted to another project, Happy Homes-1. Despite repeated attempts to seek clarity, Devas Infra Ventures directed her to approach Bhuvan Tej Infra Projects. The latter demanded an additional Rs 6 lakh to proceed, which she paid, resulting in a new agreement that set the completion deadline for November 11, 2024. Yet, even after this, the project made little progress.
Frustrated by the lack of transparency and delays, Mercy Thanakachan filed a complaint with RERA. She requested that the project be completed within the promised timeline or that an equivalent house be registered in her name. If neither was possible, she sought a refund of her payments with interest.
After reviewing the case, RERA ordered Bhuvan Tej Infra Projects Private Limited to refund the amount paid by the complainant, along with 11 percent interest, within 45 days. The authority also imposed a penalty of Rs 6,45,750 for failing to register the project with RERA and prohibited any sale, promotion, or booking of houses in Happy Homes-1 until further notice.
Additionally, Devas Infra Ventures was fined Rs 1,08,800 for engaging in real estate business in violation of regulations. The company was instructed to reapply for real estate agent registration and to halt all property transactions until the registration is granted.
This decision by RERA is a significant step towards ensuring accountability and transparency in the real estate sector, protecting the rights of homebuyers and maintaining the integrity of the market. The authority's actions send a clear message to other developers that non-compliance with regulatory norms will not be tolerated.
For homebuyers, this case highlights the importance of due diligence before entering into agreements with real estate developers. It is crucial to ensure that the project is registered with RERA and that all necessary documents and permits are in place. Homebuyers should also be aware of their rights and the procedures for lodging complaints if they encounter issues with their projects.
The Telangana Real Estate Regulatory Authority (RERA) plays a vital role in regulating the real estate market in the state. Established under the Real Estate (Regulation and Development) Act, 2016, RERA aims to promote transparency, accountability, and consumer protection in the real estate sector. The authority is responsible for ensuring that developers adhere to regulatory norms, maintain project timelines, and provide accurate information to homebuyers.
This case serves as a reminder to both developers and homebuyers about the importance of compliance and due diligence in the real estate market. By enforcing regulations and protecting consumer rights, RERA is helping to build a more trustworthy and reliable real estate sector in Telangana.
Frequently Asked Questions
What is the Telangana Real Estate Regulatory Authority (RERA)?
The Telangana Real Estate Regulatory Authority (RERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016. It aims to promote transparency, accountability, and consumer protection in the real estate sector.
Why did RERA take action against Devas Infra Ventures and Bhuvan Tej Infra Projects Private Limited?
RERA took action against these two firms for failing to complete a housing project on time and for violating several regulatory norms, including not registering the project with RERA and demanding additional payments from the homebuyer.
What penalties were imposed on Bhuvan Tej Infra Projects Private Limited?
Bhuvan Tej Infra Projects Private Limited was ordered to refund the amount paid by the complainant, along with 11 percent interest, within 45 days. The authority also imposed a penalty of Rs 6,45,750 and prohibited any sale, promotion, or booking of houses in the Happy Homes-1 project until further notice.
What penalties were imposed on Devas Infra Ventures?
Devas Infra Ventures was fined Rs 1,08,800 for engaging in real estate business in violation of regulations. The company was instructed to reapply for real estate agent registration and to halt all property transactions until the registration is granted.
What can homebuyers do to protect themselves from similar issues?
Homebuyers should ensure that the project is registered with RERA, that all necessary documents and permits are in place, and that they are aware of their rights and the procedures for lodging complaints if they encounter issues with their projects.
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