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RERA Fines Plot Buyer for Acting as Unregistered Real Estate Agent

TS RERA norms violation penalty

The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a ₹1 lakh penalty on a city-based individual for acting as an unregistered real estate agent after he booked 12 plots with the intention of reselling them to third parties.

The penalty was imposed on Chinthakindi Chakrapani in connection with the GK Renuka Highway City project.

In its order dated June 22, 2026, TG RERA held that Chakrapani’s conduct amounted to acting as a real estate agent without obtaining the mandatory registration required under Section 9(1) of the Real Estate (Regulation and Development) Act, 2016.

The case also resulted in penalties against the developers and another intermediary, taking the total penalty imposed to ₹5.69 lakh.

Why Was Chakrapani Fined?

According to the TG RERA order, Chakrapani had booked 12 plots in the GK Renuka Highway City project.

The important factor was not merely the number of plots booked but his admitted intention to resell them to third parties within a stipulated period.

TG RERA considered this conduct significant because it indicated that the transactions were not simply purchases for his own use.

The Authority concluded that Chakrapani had effectively acted in the capacity of a real estate agent, even though he had not obtained the registration required under Section 9(1) of the RERA Act.

₹1 Lakh Penalty Under Section 62

Section 9(1) requires a person acting as a real estate agent in relation to a registered real estate project to obtain registration from the relevant RERA authority.

For violating this requirement, TG RERA imposed a ₹1 lakh penalty under Section 62 on Chakrapani.

The order therefore highlights an important aspect of RERA: a person facilitating or undertaking real estate transactions for resale purposes may attract the regulatory requirements applicable to real estate agents.

Developers Also Penalised for Unregistered Plot Sales

The proceedings did not end with the action against Chakrapani.

TG RERA also found violations on the part of the developers of the GK Renuka Highway City project.

The developers, Gopi Krishna Infra & Developers, represented by partners Tati Upendranath and Malgireddy Yugandar Reddy, were found to have accepted advance amounts and entered into agreements for sale of plots without obtaining mandatory RERA registration.

According to the Authority, the developers had arranged for the marketing and resale of plots through an intermediary and had accepted advance consideration before securing the required project registration.

TG RERA treated this as a violation of Section 3(1) of the RERA Act.

₹3.69 Lakh Penalty on Developers

For the violation, the two developer partners were jointly fined ₹3.69 lakh under the penal provisions of the Act.

The finding reinforces the fundamental requirement that promoters must obtain the necessary RERA registration before advertising, marketing, booking or selling units in a project, where registration is mandatory.

Another Unregistered Agent Penalised

TG RERA also took action against Parasuram, who was impleaded as the third respondent in the proceedings.

The Authority found that Parasuram had acted as a real estate agent without obtaining the required registration.

He was found to have facilitated the sale and marketing of plots in GK Renuka Highway City.

TG RERA therefore held that his conduct violated Section 9(1) of the RERA Act.

Parasuram Fined ₹1 Lakh

Parasuram was consequently ordered to pay a ₹1 lakh penalty under Section 62.

The order thus imposed penalties not only on the developer but also on individuals involved in the marketing and resale process.

Total Penalty: ₹5.69 Lakh

The penalties imposed in the case were:

Party Violation Penalty
Gopi Krishna Infra & Developers – partners Tati Upendranath and Malgireddy Yugandar Reddy Marketing/sale of plots without mandatory project registration ₹3.69 lakh
Chinthakindi Chakrapani Acting as an unregistered real estate agent ₹1 lakh
Parasuram Acting as an unregistered real estate agent ₹1 lakh
Total ₹5.69 lakh

The developers were directed to pay ₹3.69 lakh, while Chakrapani and Parasuram were each directed to pay ₹1 lakh to the TG RERA Fund.

30 Days to Pay the Penalties

TG RERA has granted the parties 30 days from receipt of the order to deposit the respective penalties.

The Authority has also warned that failure to comply with the directions could result in further penal consequences under Section 63 of the RERA Act, without any further notice.

What Does This Order Mean for Plot Transactions?

The case is significant because RERA compliance is not limited to conventional apartment projects.

Where a real estate project falls within the scope of RERA and registration is mandatory, the regulatory requirements can apply to plots, villas and other real estate units as well.

The order also demonstrates that TG RERA is examining the conduct of people who participate in the marketing, booking and resale of real estate, rather than focusing exclusively on the promoter.

Buying Multiple Plots for Resale Can Raise Regulatory Questions

The case does not mean that every person who purchases more than one property automatically becomes a real estate agent.

The significant fact recorded in the order was that Chakrapani had admitted an intention to resell the 12 plots to third parties.

TG RERA treated this conduct as evidence that he was acting in the capacity of a real estate agent.

Therefore, the distinction between an individual purchasing property for personal or investment purposes and a person facilitating or dealing in property for resale can become important under RERA.

Why RERA Registration of Agents Matters

Real estate agents play an important role in connecting promoters and purchasers.

RERA requires eligible real estate agents dealing with registered projects to obtain registration.

The objective is to create greater accountability and transparency in real estate transactions.

Registration also provides a regulatory framework within which agents are expected to operate.

An individual or intermediary who participates in the marketing or sale of units without complying with the registration requirement can face financial penalties.

Developers Cannot Bypass RERA Through Intermediaries

Another important aspect of the TG RERA order concerns the conduct of the developer.

A promoter cannot avoid RERA requirements merely because sales or marketing activities are carried out through an intermediary.

If the underlying project requires registration, the promoter must comply with the statutory requirement before undertaking activities covered by Section 3(1).

The TG RERA findings in this case underline the importance of obtaining registration before accepting advance payments, entering into agreements for sale and marketing units.

Key Lessons for Homebuyers and Investors

1. Verify Project Registration Before Paying Money

Buyers should verify the project’s TG RERA registration status before booking a plot, villa or apartment.

2. Verify the Agent’s Registration

If a broker or intermediary is involved, buyers should also verify whether the person or entity is a registered real estate agent.

3. Be Careful With Pre-Registration Bookings

A promoter asking buyers to pay advances or sign agreements before mandatory project registration should be treated with caution.

4. Do Not Rely Only on Brochures or Assurances

Buyers should independently verify the project’s official RERA records, approvals and other relevant documents.

5. Intermediaries Can Also Face Penalties

The order demonstrates that RERA enforcement can extend beyond developers to unregistered agents and intermediaries involved in real estate transactions.

A Wider Message on RERA Compliance

The TG RERA order sends a clear message that RERA compliance applies across the transaction chain.

Developers must comply with project registration requirements, while persons acting as real estate agents must comply with the separate requirement of agent registration.

In the GK Renuka Highway City matter, TG RERA imposed penalties on both sides of the transaction: the developers were penalised for dealing with plots without mandatory project registration, while two individuals were penalised for acting as unregistered real estate agents.

The total penalty of ₹5.69 lakh therefore serves as a reminder that participation in real estate marketing and resale activities can carry regulatory consequences where the requirements of the RERA Act are not followed.

Conclusion

The Telangana Real Estate Regulatory Authority’s June 22, 2026 order highlights the importance of complying with RERA at every stage of a real estate transaction.

Chinthakindi Chakrapani was fined ₹1 lakh after TG RERA found that his booking of 12 plots with the admitted intention of resale amounted to acting as an unregistered real estate agent.

At the same time, the developers were fined ₹3.69 lakh for accepting advances and entering into agreements for sale without obtaining mandatory project registration, while another intermediary, Parasuram, was fined ₹1 lakh for acting as an unregistered agent.

With ₹5.69 lakh in total penalties, the order reinforces the principle that developers and intermediaries must operate within the regulatory framework established by the Real Estate (Regulation and Development) Act, 2016.

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