The Telangana Real Estate Regulatory Authority (TG-RERA) imposed a significant penalty of Rs 4.7 crore on a local builder on Thursday, marking the highest fine ever levied for this type of violation in the state to date.
This decision was made in response to complaints from numerous dissatisfied homebuyers who reportedly lost their investments in the project. In its ruling, the authority indicated that Bharathi Builders Pvt Ltd had collected “substantial amounts” from buyers through pre-launch offers for its project, ‘Bharathi Lake View Apartments’ located in Kompally, in 2021, without securing the necessary registration under the Real Estate (Regulation and Development) Act.
At the time of the sale, no construction activities had been initiated. Furthermore, despite the builder’s assurances to customers regarding project completion within 24 months, it failed to meet this commitment, as noted by the authority. “Given the lack of any evidence suggesting that the project would be completed, the buyers cannot be forced to remain involved in the project.
Consequently, the promoter is required to refund the total amount paid by the complainants, along with interest as stipulated under Rule 15 of the Telangana Real Estate Rules, 2017, within a 60-day timeframe,” the authority stated while designating the builder as a “default promoter”.
A fine of Rs 3.56 crore was imposed on the company, which is to be paid alongside a previous penalty of Rs 1.19 crore that was levied for similar infractions. “Another entity, Sree Bharathi Builders, which is also involved in the project’s development, qualifies as a “promoter”. Therefore, all such entities will be jointly and severally responsible for refunding the amounts to the buyers,” the authority concluded.
Advising homebuyers to refrain from investing in pre-launch schemes for projects that lack registration under RERA, the authority emphasized that such offers are “strictly prohibited by law”. “Projects that are not registered with RERA do not fall under the regulatory supervision of the authority. Buyers may also forfeit the financial protections available in registered projects. Consequently, it is recommended that potential buyers confirm the registration status of any real estate project on the official TG RERA portal (https://rera.telangana.gov.in) prior to engaging in any transaction,” the authority remarked.
