The Telangana Real Estate Regulatory Authority (TGRERA) has recently penalized Greenspace Housing and Engineers Private Limited with a fine of ₹8.5 lakh for failing to register its apartment project, Greenspace Grand, under the Real Estate (Regulation and Development) Act, 2016 (RERA Act). This action underscores TGRERA’s commitment to enforcing regulatory standards and ensuring accountability in the real estate sector.
Complaint and Violation
The case was initiated by TGRERA after a complaint was filed against Greenspace Housing for not registering Greenspace Grand, a project located in Hyderabad, as mandated by Sections 3 and 4 of the RERA Act. Although the original complainant later withdrew the complaint, TGRERA continued its investigation, as the company’s failure to register represented a direct violation of RERA compliance requirements.
Greenspace Housing’s Response to the Show-Cause Notice
TGRERA issued a show-cause notice to Greenspace Housing in June, requiring the developer to explain its non-compliance with RERA regulations. In response, Greenspace Housing stated that the project initially began in 2016 under different ownership and had received initial approvals from the Hyderabad Metropolitan Development Authority (HMDA). However, due to delays attributed to the COVID-19 pandemic, they claimed that additional regulatory compliance steps, including the relinquishment of mortgaged flats, were only completed in 2020.
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TGRERA’s Verdict: Registration Obligation Stands
After reviewing Greenspace Housing’s response, TGRERA determined that Greenspace Grand was an ongoing project at the time the RERA Act was enacted in 2016 and had not yet received a completion certificate. According to RERA regulations, projects that were ongoing and without a completion certificate at the time of the Act’s commencement were required to register within three months. Given that Greenspace Grand was fully completed in 2020, TGRERA ruled that the project fell under the purview of RERA and was therefore required to comply with registration requirements under Section 4 of the Act.
Penalty Imposition and Further Directions
Based on these findings, TGRERA imposed an ₹8.5 lakh penalty on Greenspace Housing under Section 38, read in conjunction with Sections 59 and 60 of the RERA Act. This penalty must be paid within 30 days to the TGRERA Funds. Additionally, TGRERA directed Greenspace Housing to submit a registration application for the Greenspace Grand project in compliance with Section 4. Failure to comply with this directive could lead to further penalties under Section 63 of the RERA Act.
The penalty order was issued under the leadership of TGRERA chairperson N. Satyanarayana. This ruling reiterates TGRERA’s enforcement of regulatory compliance within Telangana’s real estate sector, aiming to protect homebuyers and maintain transparency.