The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a ₹43.16 lakh penalty on SVM Aditya Homes for allegedly advertising, marketing and booking units in its ‘Tech Homes’ project without mandatory RERA registration and HMDA approval.
The order serves as another warning to developers that real estate projects must satisfy the statutory requirements before units can be advertised, booked or sold.
‘Tech Homes’ Project Came Under TG RERA Scrutiny
The penalty was imposed on SVM Aditya Homes, represented by its Managing Partner N. Srinivas Babu, in connection with the Tech Homes project.
According to TG RERA, the promoter had:
- Advertised the project
- Marketed the units
- Accepted bookings
- Collected sale consideration from buyers
without obtaining the mandatory registration required under the Real Estate (Regulation and Development) Act, 2016.
The Authority also noted that the project did not have HMDA approval.
RERA Registration Is Mandatory Before Sale
TG RERA reiterated that obtaining project registration is not merely a procedural requirement that can be completed after sales begin.
Under Section 3(1) of the RERA Act, a promoter cannot advertise, market, book, sell or offer units for sale in a real estate project without first obtaining the required RERA registration, subject to the exemptions specifically provided under the Act.
In an earlier order dated April 22, 2026, the Authority had held that registration is a mandatory precondition before a promoter can undertake such activities.
TG RERA found that the exemptions under Section 3(2) were not applicable to the Tech Homes project.
Booking Units and Collecting Money Also Amount to Violation
The Authority went beyond simply examining whether the project had been advertised.
It held that activities such as booking units, collecting sale consideration and executing Memoranda of Understanding (MoUs) with buyers in an unregistered project can amount to violations of the RERA Act.
This is particularly significant for homebuyers because developers sometimes describe transactions using terms such as “booking,” “investment,” “expression of interest” or “MoU” instead of a conventional sale agreement.
The regulatory requirement, however, depends on the substance of the transaction and the conduct of the promoter, rather than merely the terminology used in the documents.
₹43.16 Lakh Penalty Imposed
After considering the alleged violations, TG RERA imposed a penalty of:
₹43,16,480
The penalty was imposed by TG RERA Members Laxmi Narayana Jannu and K. Srinivasa Rao, exercising powers under Sections 38 and 59 of the RERA Act.
SVM Aditya Homes has been directed to deposit the penalty amount into the TG RERA Fund within 30 days from the date of receipt of the order.
What Happens If the Developer Does Not Pay?
TG RERA has warned that failure to comply with the penalty order could result in further penal consequences under Section 63 of the RERA Act.
The Authority has specifically stated that such action may be taken without any further notice.
The warning reinforces the principle that a penalty order issued by RERA is not merely advisory. Promoters are expected to comply within the prescribed period.
Why This Order Matters for Homebuyers
The Tech Homes order highlights an important precaution for prospective property buyers.
A buyer should never assume that a project is legally approved simply because a developer is accepting bookings or advertising the property.
Before making any payment, buyers should verify:
RERA registration → Planning authority approval → Project details → Promoter details → Approved plans → Completion timeline
For projects in the Hyderabad metropolitan region, checking the relevant HMDA approval status is also important.
Unregistered Projects Carry Significant Risks
Purchasing a unit in an unregistered project can expose buyers to considerable risks.
Where a promoter starts marketing or accepting bookings before obtaining mandatory registration, buyers may face uncertainty regarding:
- Project approvals
- Land and development rights
- Construction timelines
- Project disclosures
- Promoter obligations
- Use of buyer funds
- Possession
- Legal compliance
The RERA registration system is designed to provide buyers with access to important project information and regulatory oversight.
TG RERA Sends a Strong Message to Developers
The ₹43.16 lakh penalty demonstrates that TG RERA is continuing to take action against promoters who allegedly bypass the requirement of prior project registration.
The message is particularly relevant to developers promoting projects at the pre-launch stage.
A promoter cannot simply begin accepting money from prospective purchasers and obtain RERA registration later if the project was required to be registered before those activities began.
Key Takeaways
Project: Tech Homes
Promoter: SVM Aditya Homes
Managing Partner: N. Srinivas Babu
Alleged violations: Marketing, advertising, booking and collecting sale consideration without mandatory RERA registration
Additional issue: Project lacked HMDA approval
Penalty: ₹43,16,480
Relevant provisions: Sections 3(1), 38, 59 and 63 of the RERA Act
Payment deadline: 30 days from receipt of the order
Consequences of non-payment: Further penal action under Section 63
Conclusion
The TG RERA order against SVM Aditya Homes underscores a fundamental requirement under the RERA regime: a promoter must obtain mandatory project registration before advertising, marketing, booking or selling units in a project covered by the Act.
The fact that a project is being actively marketed or that a promoter is accepting booking amounts does not establish that the project has obtained all necessary regulatory approvals.
For homebuyers, the order reinforces the importance of conducting RERA and planning-authority verification before paying a booking amount. For developers, it serves as a reminder that bypassing the registration process can result in substantial financial penalties and further regulatory action.
