TG RERA Reaffirms Jurisdiction Over Older Projects, Issues Warning to Builders
The Telangana Real Estate Regulatory Authority (TG RERA) has issued a strong statement reaffirming its jurisdiction over all real estate projects that did not have an Occupancy Certificate (OC) or Completion Certificate (CC) when the Real Estate (Regulation and Development) Act, 2016 came into force. This clarification was made during a complaint filed by allottee Sangeeta Singh against M/s Provident Housing Limited (Complaint No. 287 of 2024).
TG RERA issued a stern warning to developers, emphasizing that the allotment of flats that are under mortgage is strictly impermissible and contrary to established real estate norms. The authority noted that under Section 13 of the Act, a promoter cannot collect more than 10 per cent of the cost of a flat without executing and registering an Agreement for Sale. In the case of M/s Provident Housing Limited, more than 10 per cent of the amount was collected without such an agreement, which was deemed a clear violation of the Act.
The Authority further clarified that interest for delay under Section 18 can only be claimed if a specific possession date is clearly mentioned in a registered agreement. If the possession timeline is not specified in a written contract, the developer is not liable for interest payments. This clarification is crucial for both developers and homebuyers to understand their rights and obligations under the Act.
Emphasizing its regulatory scope, TG RERA stated that irrespective of when building permissions were obtained, projects without an OC or CC as of the commencement of the Act are considered “ongoing projects” and are fully governed by RERA provisions. This means that developers must comply with all the regulations and guidelines set forth by the Act, regardless of the age of the project.
While the Authority refrained from imposing a monetary penalty under Section 59 in this case—citing earlier legal ambiguities in state rules and amendments notified on March 4, 2025—it issued a stern warning to the developer against future violations. The complaint was ultimately resolved when the developer executed the sale deed and handed over possession to the allottee during the course of the proceedings, as stated in an official statement.
This ruling by TG RERA serves as a significant reminder to real estate developers in Telangana to adhere to the provisions of the Real Estate (Regulation and Development) Act, 2016. It underscores the importance of transparency, accountability, and compliance in the real estate sector, ultimately protecting the interests of homebuyers and maintaining the integrity of the market.
