The Telangana Real Estate Appellate Tribunal (TREAT) has delivered a significant ruling reinforcing the principles of transparency and accountability under the Real Estate (Regulation and Development) Act, 2016. The tribunal held that developers cannot alter crucial clauses in sale agreements after obtaining registration from Telangana RERA (TRERA).
In the matter concerning the Greenwood Heights residential project in Kowkur village, Medchal-Malkajgiri district, the tribunal upheld a penalty of more than ₹11 lakh imposed on the developer for executing agreements that substantially differed from the draft agreement submitted before the authority during project registration.
The ruling is being viewed as a major victory for homebuyers and a stern warning to builders against modifying contractual terms without regulatory approval.
Tribunal Says Approved Agreement Format Cannot Be Changed
The tribunal observed that the promoter had uploaded one standard agreement format before Telangana RERA during project registration but later executed a “completely different” agreement with buyers.
According to the tribunal, such conduct violates Rule 38 of the Telangana RERA Rules and amounts to furnishing false information before the authority.
The tribunal stated that developers are legally bound to follow the agreement template submitted to RERA and cannot introduce clauses that dilute buyer rights or impose additional liabilities.
The order noted:
“The appellant/promoter has uploaded the same draft agreement of sale on the website as that of the Annexure to Rule 38 of the Rules, but has executed a completely different agreement of sale in favour of the complainants, which is impermissible.”
The tribunal further observed that the developer engaged in “deliberate suppression of material facts.”
Background of the Greenwood Heights Dispute
The dispute arose after homebuyers booked a flat in the Greenwood Heights project in October 2019 for approximately ₹62.33 lakh.
A sale agreement was executed in November 2019, while the final registered sale deed was executed in April 2024.
However, when the buyers sought possession of the apartment, the developer allegedly imposed several conditions, including:
- Mandatory membership in the Greenwood Welfare Association
- Retrospective maintenance charges from March 2023
- Signing possession-related declarations before actual handover
- Additional charges towards water facilities
The buyers contended that the project had not received an Occupancy Certificate (OC) and therefore such demands were unlawful.
Tribunal Rules Maintenance Charges Cannot Be Levied Before OC
One of the most important observations made by the tribunal was regarding maintenance charges.
The tribunal ruled that builders cannot compel homebuyers to pay maintenance charges before:
- Obtaining the Occupancy Certificate
- Completing pending works
- Handing over actual physical possession
This observation strengthens the rights of homebuyers facing premature maintenance demands in under-construction or incomplete projects.
The tribunal also restrained the developer from charging GST on delayed payment interest levied on buyers.
Penalty Under Section 60 of RERA Act Upheld
The Telangana RERA Authority had earlier imposed a penalty of ₹10,99,992 under Section 60 of the RERA Act for furnishing false information.
The developer challenged this order before the appellate tribunal, arguing that the changes in the agreement were only minor variations and did not prejudice buyers.
However, the tribunal rejected the contention and upheld the penalty in full.
The tribunal observed that statutory agreement formats exist to protect consumer rights and cannot be casually modified by promoters.
Developer Directed to Complete Pending Works
The tribunal also directed the promoter to complete all pending works before handing over possession to homebuyers.
Additionally, it ordered dissolution of the existing Greenwood Welfare Association and instructed the promoter to form a fresh association in accordance with:
- Telangana Cooperative Societies Act
- Applicable Telangana RERA Rules
The tribunal further held that collecting possession-related declarations and No Objection Certificates before actual handover of flats was impermissible.
Significance of the Judgment for Homebuyers
The ruling is likely to have a far-reaching impact on the real estate sector in Telangana and across India.
The judgment reinforces several important principles:
- Builders cannot alter approved sale agreements after RERA registration
- Homebuyers cannot be forced to pay maintenance before possession
- Occupancy Certificate is mandatory before complete possession obligations arise
- Welfare associations must be legally constituted
- Misleading disclosures before RERA can attract heavy penalties
The order strengthens consumer confidence and reiterates that RERA authorities will strictly enforce compliance with statutory norms.
Growing Regulatory Scrutiny Under RERA
Over the past few years, RERA authorities and appellate tribunals across India have increasingly acted against developers for:
- Delayed possession
- Misleading advertisements
- Illegal transfer charges
- Failure to provide promised amenities
- Alteration of contractual terms
- Non-compliance with regulatory orders
The Telangana tribunal’s latest ruling adds to a growing body of decisions aimed at protecting homebuyers and ensuring transparency in the real estate sector.
Conclusion
The Telangana Real Estate Appellate Tribunal’s decision in the Greenwood Heights case sends a clear message that developers cannot bypass statutory obligations under the RERA framework. By upholding the ₹11 lakh penalty and reaffirming the sanctity of approved sale agreements, the tribunal has strengthened buyer protections and reinforced accountability in the housing sector.
The ruling is expected to serve as an important precedent for future disputes involving altered agreements, unfair maintenance charges, and delayed possession claims under the RERA Act.