TV
Highlighting the importance of registration of a real-estate project with the state RERA authority, a developer now faces significant penalties for selling flats without mandatory registration and failing to deliver homes on time.
According to reports from The Economic Times, the Telangana Real Estate Regulatory Authority (TGRERA) fined state-based Bhuvanteza Infrastructures LLP Rs 14.9 lakh and also ordered the builder to refund 62 homebuyers with interest for delays and non-compliance with TGRERA.
Project Launched Illegally
The case involves the 'Aura Velimala Phase 1' project in Velimala, Sangareddy district, where TGRERA found the builder violated the Real Estate (Regulation and Development) Act, 2016.
Specifically, the builder launched, marketed, and sold flats without obtaining the required RERA project registration. Further, the project area exceeded 7,300 square metres, far above the 500 sqm/8 apartment threshold mandating RERA registration.
Buyers Left Waiting, Construction Stalled
Homebuyers signed agreements between 2021 and 2023, with possession promised by December 2023. However, by June 2024, only 20% of the construction was complete.
Buyers raised concerns about the significant delays and the builder's vague responses, and subsequently approached TGRERA six months after the missed possession date.
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RERA Cites Blatant Violations
TGRERA's investigation confirmed serious breaches, noting that the builder executed sale agreements without RERA registration, violating Sections 3 and 4 of the Act.
The authority rejected the builder's excuse about pending statutory approvals, stating the law offers no exceptions for incomplete registrations. TGRERA noted the builder's pattern of non-compliance across projects, showing deliberate disregard for the law.
Refunds Ordered with Interest
Given the minimal progress and lack of a clear completion plan, TGRERA ruled that buyers cannot wait indefinitely.
It ordered Bhuvanteza Infrastructures LLP and its partners to jointly refund all money collected from the 62 buyers. The refund must include 11% annual interest accrued from the date each buyer signed their agreement until the actual refund date. Additionally, it also handed the builder just 30 days to comply.
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Failure to refund the money within the deadline will trigger additional penalties under Section 63 of the RERA Act. The Rs 14.9 lakh fine stands as punishment for the illegal project launch and sales. Overall, this case underscores the strict enforcement of RERA registration rules and protections for homebuyers against delayed projects.
