The Telangana Real Estate Regulatory Authority (TGRERA) has issued a strong order against two Hyderabad-based firms — Suvarnabhoomi Infra Developers Pvt. Ltd. and Maha Infra and Developers — for failing to complete essential infrastructure and for misrepresenting key project details of Silpa’s Suvarna Sampada 2, located in Patancheru, Sangareddy district.
Strict Directions to Complete Project in 60 Days
In a sternly worded order, the Authority directed both companies to jointly complete the project within 60 days, in full compliance with the sanctioned plan approved by the competent authority. The order observed that “dual presentation without clear disclosure of the respective roles and extent of transfer amounts to misrepresentation and undermines the intent of Sections 4 and 11(2) of the RERA Act.”
TGRERA clarified that internal agreements or MOUs between developers cannot override or dilute their statutory obligations toward homebuyers. Both entities were held jointly and severally liable for the project’s completion and compliance.
Complaint Highlights Delays and Violations
The action followed a complaint filed by a plot owner who alleged that despite being registered with RERA in 2019, the project remained incomplete long after its approval period expired in 2021. Basic infrastructure such as roads, drainage systems, street lighting, and water pipelines had not been developed, and several plots mortgaged to the Hyderabad Metropolitan Development Authority (HMDA) were allegedly sold to unsuspecting buyers.
The complainant further stated that Suvarnabhoomi Infra Developers Pvt. Ltd. engaged popular film actors to promote the project through advertisements, misleading homebuyers into believing that the layout was fully developed.
Undisclosed MOUs and Misrepresentation
The order uncovered that the two firms had entered into undisclosed Memorandums of Understanding (MOUs) transferring marketing and sale rights to third parties without notifying RERA or the allottees. TGRERA termed this a “serious breach of transparency”, warning that any future violations would lead to both firms being declared defaulters.
The order emphasized that the promoter cannot, by private arrangement, shift the burden of statutory obligations onto other entities or purchasers without transparent disclosure. It reiterated that both the developer and the marketing company qualify as “promoters” under the Real Estate (Regulation and Development) Act, 2016, and are therefore equally responsible for compliance.
Buyers Advised to Verify RERA Details
Issuing a public advisory, TGRERA urged homebuyers to verify project registration details and ensure that the marketing entity and registered promoter are the same before investing. It cautioned buyers against relying solely on advertisements or celebrity endorsements and advised checking official project details on the RERA website, reviewing all approvals, and seeking professional legal advice prior to purchase.
Previous Penalties and Future Action
The Authority also instructed its secretary to confirm whether the developers had complied with a previous penalty of ₹5.97 lakh imposed on them. If violations are found to persist, fresh proceedings under Section 63 of the RERA Act will be initiated.
TGRERA’s order serves as a landmark warning to developers using deceptive marketing tactics and failing to uphold their obligations to homebuyers. It reinforces the regulatory principle that transparency and accountability are at the core of the Real Estate (Regulation and Development) Act, 2016, ensuring protection for genuine investors and restoring public trust in the real estate sector.
