Only 25% of the total real estate projects sanctioned in Telangana between 2017 and 2019 are RERA-compliant, reveal records. While the state saw over 6,000 ventures being green signaled during this period 80% of them in Hyderabad the Telangana State Real Estate Regulatory Authority (TSRERA) data shows only 1,550 of them have the mandatory Rera registration number.
The Rera regulations in Telangana formulated in July 31, 2017, made it compulsory for all projects “whose building permissions were approved on or after January 1, 2017” to register with the state Rera authority. It also included ongoing projects that were not issued an Occupancy Certificate or Completion Certificate, at the time of rollout.
Yet, many projects continue to thrive without the Rera stamp. The most common violations: advertising and selling without registration number, denying compensation to customers as mentioned in the act and employing marketing agents who are not Rera-certified.
“I have at least three clients from Telangana who have invested in DLF’s Garden City project (Mahbubnagar) and are yet to receive possessions of their plots. While we have filed complaints in two of these with the RERA authority my last letter was as recent as January 4 no action has been initiated against the developer,” said Kailash K Ahuja, a Supreme Court advocate.
Confirming that the implementation of Rera across many states and Union Territories continues to be “patchy”, Satish Vadaga of Anarock said: “Even now, in most states including Telangana it does not provide watertight solutions to problems plaguing the real estate sector such as construction delay. No doubt, homebuyers in many states are still waiting incessantly for their complaints to be addressed and continue to suffer due to delayed adjudication. Despite repeated deadlines given to register projects, a large section of developers has not yet registered their projects with state Rera. Developers are being let off with a penalty of just Rs lakh for late registration.”
Rera officials, however, maintain that they are dealing with violations strictly. “We take action each time a matter is brought to our notice. So far, we have issued 60-70 showcause notices to various projects and imposed fine on 160 of them – of between Rs 50,000 and Rs 3 lakh. In one case, we imposed a fine of Rs 14 lakh while two others were penalised for Rs 25 lakh,” said an official.
