The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of ₹6.45 lakh on Banjara Hills-based BhuvanTeza Infra Projects for violating provisions of the Real Estate (Regulation and Development) Act by selling units in an unregistered residential project, ‘Happy Homes-1’, located in Shamirpet. The regulator has also ordered the company to refund all principal amounts collected from homebuyers, along with 11% annual interest, within 90 days.
The enforcement action follows complaints filed by four homebuyers, including Appam Kiran Kumar of Sumitranagar, Kukatpally, who alleged that the developer marketed and sold flats between 2020 and 2023 without mandatory registration under Section 3 of the RERA Act. The complainants stated that the project was widely promoted during its pre-launch phase with brochures, site plans, and verbal assurances about early possession and regulatory approvals.
According to the complaint, the project’s managing director, Chekka Venkata Subramanyam, claimed that approvals from the Hyderabad Metropolitan Development Authority (HMDA), TG RERA, and the local revenue department were either in hand or would be secured shortly. Based on these assurances, buyers proceeded to pay for units using cheques, cash, and online transfers. Some buyers were even made to register plots under survey numbers 685 and 686 in their names as security, and entered into development agreements transferring undivided shares to the promoter.
However, despite the financial and legal commitments made by the allottees, no development was initiated at the site. Buyers reported a complete absence of construction activity and said their repeated requests for status updates or refunds were met with vague responses and, in some cases, threats. The absence of any statutory approvals, coupled with non-registration of the project, confirmed clear violations of the RERA framework.
In its order, TG RERA not only levied a fine of ₹6.45 lakh on the developer but also instructed BhuvanTeza Infra Projects to return all principal amounts collected from the complainants. The refunds are to be made within 90 days from the date of the order, with an interest rate of 11% per annum applicable from the respective dates of payment.
This case highlights ongoing concerns over illegal pre-launch sales in the Hyderabad property market. Despite the implementation of RERA regulations, certain developers continue to bypass mandatory registration and approval processes, often relying on misleading marketing practices to attract early investors.
TG RERA officials reiterated that all real estate projects involving sale, advertising, or marketing must be registered with the authority prior to launch. They advised potential buyers to cross-check project details through the TG RERA portal before committing funds and urged affected individuals to report any instances of regulatory violations.
The order against BhuvanTeza Infra Projects reinforces TG RERA’s commitment to enforcing compliance and protecting homebuyer interests. More such actions are likely as the authority increases scrutiny on non-compliant developers, particularly those engaging in pre-launch sales without necessary approvals.
