The Telangana Real Estate Regulatory Authority (TGRERA) has levied a fine of 4.5 lakh against Roy All Diamond Infra Developers for engaging in misrepresentation and unauthorized marketing of a residential plot.
The authority determined that the company had collected 9 lakh from the complainant, Madikonda Mallesh, without possessing any legal ownership or authorization over the property in question. Mallesh, a 40-year-old government employee from Mallapur, lodged the complaint after realizing that the plot he intended to purchase in the project āKaasvi E-City’ was not owned by the respondent.
As per the complaint, Nayak presented himself as a partner in Roy All Diamond Infra Developers and asserted that he was the sole owner of Plot No. 43, which spans 150 square yards in Ferozguda village, Ibrahimpatnam mandal. He requested a total sale price of 36 lakh and received 9 lakh as an advance through several payments made in March 2024. Nayak signed a sale agreement on June 7, 2024, which included a stipulation for the remaining payment of 27 lakh to be made within 40 days.
However, the respondent became untraceable following the signing of the agreement. Upon checking the property’s Encumbrance Certificate, the complainant found that the land was actually owned by a different real estate developer. Additionally, the RERA registration number referenced in the respondent’s brochure was discovered to be fraudulent.
TGRERA, in its findings, determined that the respondent lacked any legal title or authority over the land, and that his actions constituted a breach of Sections 11(4)(a) and 12 of the Real Estate (Regulation and Development) Act, 2016. In addition to the penalty stipulated under Section 61, the authority mandated the respondent to reimburse the 9 lakh received from the complainant, along with 11% annual interest, calculated from the date of each payment until the total amount is recovered.
The refund must be completed within 30 days from the date of the order. Highlighting “unauthorised and deceptive conduct,” the authority also directed the Telangana RERA secretary to commence an inquiry and issue a show cause notice to the registered promoters of Kaasvi E-City. This notice requests a written explanation regarding whether Nayak was ever authorised to market or collect payments for the project, and necessitates the submission of all pertinent agreements and correspondence. The order was issued pursuant to Sections 37 and 38 of the RERA Act, which empower the authority to undertake such enforcement actions.
The authority has made it clear that any further failure to comply with the refund or penalty payment deadlines will result in additional repercussions under the Act.
