Telangana RERA Penalizes Unregistered Real Estate Agents for Misleading Buyers

Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has taken strict action against three individuals and their companies for illegally acting as real estate agents and misleading buyers in a project at Kokapet. The complaint was filed by Viana Homes, the developer of Poojitha Tech Park, a RERA-registered project.

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 registration as 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 buying office spaces in the tech park. While there were initial discussions, no agreement was signed. Despite this, Balaraju and his companies went ahead and dealt with buyers, collected funds, and misrepresented themselves as 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, 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.

This crackdown highlights the importance of compliance with the RERA Act, which aims to protect homebuyers and ensure transparency and accountability in the real estate sector. Developers and agents must adhere to the regulations to avoid penalties and legal consequences. TGRERA's actions serve as a deterrent to those who attempt to circumvent the law and mislead consumers.