Telangana RERA Penalizes Unregistered Real Estate Agents for Misleading Buyers
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed fines and banned three individuals and their companies for illegally acting as real estate agents and misleading buyers in a project at Kokapet.
Real EstateReraPenaltiesKokapetTelanganaReal Estate NewsJun 01, 2025
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.
Frequently Asked Questions
What is the Real Estate (Regulation and Development) Act, 2016?
The Real Estate (Regulation and Development) Act, 2016, is a law enacted to regulate the real estate sector, protect homebuyers, and ensure transparency and accountability in real estate transactions.
Why did TGRERA penalize Sikha Balaraju and his companies?
TGRERA penalized Sikha Balaraju and his companies for acting as real estate agents without proper registration and misleading buyers in the Poojitha Tech Park project.
What penalties were imposed on Balaraju and his companies?
Balaraju and his companies were fined Rs. 3.69 lakh and barred from facilitating any real estate transactions in RERA-registered projects without proper registration.
What is the significance of RERA registration for real estate agents?
RERA registration is mandatory for real estate agents to ensure they comply with the regulations and standards set by the Real Estate (Regulation and Development) Act, 2016. It helps protect homebuyers and maintain transparency in the real estate market.
How does TGRERA's action benefit the real estate market in Telangana?
TGRERA's action helps to maintain transparency and accountability in the real estate market, protect homebuyers from fraudulent practices, and ensure that all real estate transactions are conducted in compliance with the law.
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