The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of Rs 11.5 lakh on Paradise Peak Private Limited for failing to register its 12-acre layout project with the authority, as required under the Real Estate (Regulation and Development) Act.
The penalty follows a complaint filed by a buyer, M Santhosh, who alleged irregularities in the sale of plots without the mandatory registration.
In 2018, the developer entered into a development agreement-cum-irrevocable general power of attorney (GPA) with a landowner for a project in Zaheerabad municipality in Sangareddy district. Despite obtaining DTCP layout approval in Sept 2019, Paradise Peak proceeded to sell approximately 550 plots without registering the project, exposing buyers to potential financial and legal risks.The complaint also highlighted ongoing disputes between the landowner and developer, which led to arbitration proceedings, further jeopardising the interests of the buyers.
During the hearing on Nov 20, the complainant appeared, while the developer failed to attend. TG RERA, led by chairperson N Satyanarayana (retired IAS), along with members K Srinivasa Rao and Laxmi Narayana Jannu, concluded that while the complainant did not qualify as an aggrieved party due to lack of legal injury, violations by Paradise Peak were evident.
TG RERA determined that the project exceeded the statutory threshold for mandatory registration and that the developer had breached the provisions of the Act.
As a result, TG RERA directed the developer to pay the imposed penalty within 30 days and to apply for registration under Section 4 of the Act within 15 days. Until registration is completed, the developer is strictly prohibited from advertising, marketing, or selling any plots. It emphasised the importance of compliance to protect buyers’ interests and uphold regulatory standards in real estate development.
