Telangana RERA Slaps ₹14.9 Lakh Fine on Developer for Unregistered Real Estate Project
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed a fine of ₹14.9 lakh on Bhuvanteza Infrastructures LLP for failing to register the 'Aura Velimala Phase 1' project in Velimala, Sangareddy district. The authority has also directed the developer to refund the funds collected from 62 homebuyers.
Real EstateTgreraDeveloperHomebuyersFineReal Estate NewsMay 29, 2025
This comes after Bhuvanteza Infrastructures LLP, the developer, failed to register the project under the Real Estate (Regulation and Development) Act, 2016. The regulatory body has also directed the developer and its partners to return the funds collected from 62 homebuyers, along with an annual interest of 11%.
The homebuyers said they had signed ‘unregistered’ agreements with the developer to buy flats in the project, located in Telangana's Sangareddy district. According to the agreement, the flats were supposed to be handed over by December 2023. However, the project has faced major delays, and as of June 19, 2024, only 20% of the construction was completed, the court order stated.
The buyers further submitted that the delay in possession has caused severe financial hardship as they were burdened with paying both the rent for the current residence and the EMI for the home loan taken for the flat. The developer had promised to pay rent to the buyers starting from January 2024 if the project was not completed by December 2023. However, even after several reminders, the company did not respond or make any rent payments, the order noted.
TGRERA stated that after carefully reviewing all the documents and submissions, it found that the developer had violated Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, by starting the project without getting the required registration from the Authority. No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act, the authority pointed out.
The order said that the developer could not have executed the agreements of sale with the buyers without having obtained RERA registration, which constitutes a glaring violation of the RERA Act. The developer's plea that certain statutory approvals were pending or that registration was in process cannot serve as a legal justification for such noncompliance. The (RERA) Act makes no exception for provisional or pending applications, the authority noted in its order.
TGRERA also noted that despite the passage of significant time since the execution of these agreements, many of which were executed between the years 2021 and 2023, the developer and its partners have neither completed the project nor handed over possession of the apartments to the respective allottees. The developer and its partners are liable to refund the amount to (all 62) homebuyers along with interest at the rate of 11% per annum, the order concluded.
A set of queries has been emailed to the developer, Bhuvanteza Infrastructures LLP. If a response is received, the story will be updated.
Frequently Asked Questions
What is the penalty imposed by TGRERA on Bhuvanteza Infrastructures LLP?
TGRERA has imposed a penalty of ₹14.9 lakh on Bhuvanteza Infrastructures LLP for failing to register the 'Aura Velimala Phase 1' project under the Real Estate (Regulation and Development) Act, 2016.
What actions has TGRERA directed Bhuvanteza Infrastructures LLP to take?
TGRERA has directed Bhuvanteza Infrastructures LLP to refund the funds collected from 62 homebuyers, along with an annual interest of 11%.
Why did the homebuyers face financial hardship?
The homebuyers faced financial hardship because they were burdened with paying both the rent for their current residence and the EMI for the home loan taken for the flat due to the delay in possession.
What did the developer promise to the homebuyers if the project was not completed by December 2023?
The developer promised to pay rent to the homebuyers starting from January 2024 if the project was not completed by December 2023. However, the company did not fulfill this promise.
What is the main violation found by TGRERA?
The main violation found by TGRERA is that the developer started the project without getting the required registration from the Authority, which is a violation of Section 3(1) of the Real Estate (Regulation and Development) Act, 2016.
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