The Telangana Real Estate Regulatory Authority (TG-RERA) has taken strict action against a builder for violating real estate regulations and failing to register a flat despite receiving payments from a homebuyer. In a separate case, the authority dismissed a complaint on illegal construction near Narsingi Lake-2 in Puppalguda, ruling that the complainant was not an “aggrieved party” under real estate laws.
These rulings highlight TG-RERA’s enforcement of the Real Estate (Regulation and Development) Act, 2016 (RERA) and its approach to handling homebuyer disputes and environmental concerns.
Case 1: Builder Fined ₹6.87 Lakh for RERA Violations
The first case involved homebuyer Veluri Adi Lakshmi, who had booked Flat No. 502 in Jaswitha Orchids and paid ₹63.45 lakh. She alleged the following violations:
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Failure to Register the Flat
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The builder refused to register the flat in her name.
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Instead, they demanded an additional ₹6.5 lakh, citing a rise in market rates.
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Non-Compliance with RERA Guidelines
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The Agreement of Sale was not in the standard format required under RERA.
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The builder failed to update project details on the RERA website, which is mandatory.
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Unlawful Cancellation of Allotment
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The builder canceled her allotment without following proper legal procedures.
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TG-RERA’s Findings and Decision
After reviewing the case, TG-RERA found multiple violations and imposed a fine of ₹6.87 lakh on the builder for:
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Failure to register the sale agreement
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Providing false or misleading information
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Not adhering to the correct procedures for canceling allotments
However, since the builder had already refunded most of the amount to the buyer and had sold the flat to someone else, RERA ruled that the homebuyer could not demand the flat’s registration in her name.
TG-RERA also directed the builder to comply with all legal procedures in future transactions to avoid penalties.
Case 2: Complaint on Illegal Construction Near Narsingi Lake-2 Dismissed
The second case involved a complaint filed by Dr. Lubna Sarwath, an environmental activist, against two developers:
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Phoenix Global Spaces
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Sumadhura Constructions
Allegations of Environmental Violations
Dr. Sarwath alleged that:
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The developers were illegally constructing on land classified as a water body.
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The land was wrongly reclassified for construction, violating government regulations protecting lakes and green spaces.
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There were pending legal disputes over the land in the National Green Tribunal (NGT) and Telangana High Court.
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She sought the cancellation of project registrations due to these violations.
Developers’ Defense & RERA’s Ruling
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The developers claimed they had obtained all necessary approvals.
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Official records classified the land as private property suitable for construction.
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TG-RERA ruled that Dr. Sarwath was not an “aggrieved party” under real estate laws, as she was not a direct stakeholder in the project.
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The authority found no strong evidence proving that the land was originally a protected water body.
As a result, RERA dismissed the complaint and allowed the projects to continue.
Key Takeaways from TG-RERA’s Rulings
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Builders Must Follow RERA Rules
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Agreements must comply with RERA formats.
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Flat registration is mandatory once payments are received.
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Homebuyers should verify that builders update project details on the RERA website.
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RERA Can Penalize Violations
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Builders violating real estate laws face monetary penalties.
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Failure to comply with RERA guidelines can lead to fines and legal consequences.
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Only Aggrieved Parties Can File RERA Complaints
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RERA does not entertain complaints from individuals who are not directly affected by a project.
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Environmental concerns must be proven with strong evidence and may require litigation in other forums like NGT or High Court.
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Conclusion
The TG-RERA’s actions reaffirm its commitment to protecting homebuyers from unfair builder practices while ensuring that complaints on real estate projects meet legal requirements. The ₹6.87 lakh fine imposed on the Jaswitha Orchids builder serves as a warning for developers to comply with RERA guidelines. Meanwhile, the dismissal of the illegal construction complaint highlights the need for substantial evidence when raising environmental concerns against real estate projects.
These rulings underscore the importance of transparency and legal compliance in Telangana’s real estate sector and reinforce RERA’s role in regulating the industry.
