The Telangana Real Estate Regulatory Authority (TG RERA) has levied a fine of 14.9 lakh on a real estate developer and its associates for failing to register their project ‘Aura Velimala Phase 1′ located in Velimala, Sangareddy district, in accordance with the Real Estate (Regulation and Development) Act, 2016.
Moreover, the authority mandated the builder to reimburse the amounts paid by 62 allottees, along with an interest rate of 11%. The complainants, including M Prem Kumar from Dilsukhnagar and others, reported that they had entered into unregistered sale agreements with the respondents, who had promised possession by December 2023. As of June 2024, the construction progress was only at 20%.
Despite numerous communications, the complainants received either ambiguous or no replies. They accused the builder of misappropriating funds, pointing out that sales efforts continued even though work on-site had stalled, with no structural work commenced in A and B blocks. RERA determined that the promoter had failed to obtain necessary approvals from the HMDA before collecting funds, which constitutes a breach of Sections 3 and 4 of the Act. RERA noted that the respondents are involved in multiple criminal cases due to complaints against them for misappropriating funds and are unavailable to complete the construction and deliver the promised apartments.
RERA found the respondents jointly and severally responsible for refunding the amounts collected from buyers, along with statutory interest from the date of the agreement until the refund is made. Additionally, RERA instructed the respondents to promptly apply for project registration and prohibited them from marketing or selling any units until the registration is granted. Non-compliance with these directives will result in further penalties under Section 63 of the Act.
