TGRERA Imposes Heavy Penalty on Velimala Builder for Delayed Flat Delivery
The Telangana State Real Estate Regulatory Authority (TGRERA) has levied a significant fine of Rs 14,91,958 on Bhuvanateja Infrastructure LLP for failing to deliver flats on time as promised to buyers.
Real EstateTgreraBhuvanateja Infrastructure LlpDelayed FlatsPenaltiesReal EstateMay 23, 2025
The project, named ‘Aara’, is located in Velimela village of Ramachandrapuram Mandal, Sangareddy district. It was supposed to be delivered by December 2023. However, as of June 19, 2024, only 20 percent of the construction was completed. Despite repeated complaints from 68 buyers, the company and its representatives did not take adequate action to complete the project.
The affected buyers reported financial strain due to the delay, as they were forced to pay rent for their current residences while simultaneously servicing home loans taken for the new flats. Although the builder promised to cover rent from January 2024 until possession, this assurance was not fulfilled. Buyers demanded either immediate possession or a full refund with interest.
After thoroughly examining the complaints, TGRERA ordered the builder to pay the penalty within 30 days. Additionally, they directed Bhuvanateja Infrastructure LLP to refund all amounts paid by buyers who requested refunds, along with 11 percent annual interest calculated from the date of the agreement until the refund date. TGRERA also mandated the company to immediately apply for project registration under the Real Estate (Regulation and Development) Act, 2016. Until the registration is granted, the company is prohibited from selling or marketing any flats in the project.
This decision by TGRERA is aimed at protecting the interests of homebuyers and ensuring transparency and accountability in the real estate sector. It sends a strong message to other developers that failure to meet deadlines and commitments will not be tolerated.
Frequently Asked Questions
What is TGRERA?
TGRERA stands for the Telangana State Real Estate Regulatory Authority. It is a regulatory body established to ensure transparency and accountability in the real estate sector in Telangana, India.
Why was Bhuvanateja Infrastructure LLP penalized?
Bhuvanateja Infrastructure LLP was penalized for failing to complete and hand over flats on time as per the agreement with buyers. The project was significantly delayed, causing financial strain to the buyers.
What was the penalty imposed?
The penalty imposed on Bhuvanateja Infrastructure LLP was Rs 14,91,958.
What other actions did TGRERA take against the builder?
TGRERA ordered the builder to refund all amounts paid by buyers who requested refunds, along with 11 percent annual interest. They also directed the company to apply for project registration under the Real Estate (Regulation and Development) Act, 2016.
How does this decision impact the real estate sector in Telangana?
This decision by TGRERA sends a strong message to other developers that failure to meet deadlines and commitments will not be tolerated. It aims to protect the interests of homebuyers and ensure transparency and accountability in the real estate sector.
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