The Telangana Real Estate Regulatory Authority (TG RERA) has directed R Homes to refund ₹14.95 lakh along with applicable interest to a homebuyer after finding serious violations in the development of the Jai Vasavis ORR Heights project at Patancheru, Hyderabad.
The Authority observed that the developer had advertised, marketed, and accepted bookings before obtaining mandatory RERA registration, violating the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA). TG RERA has also restrained the developer from further marketing or selling the project and initiated proceedings that may lead to cancellation of the project’s registration.
Homebuyer Alleged Misleading Pre-Launch Offers
The complaint was filed by Chilakalapudi Venkateshwara Rao, who alleged that he invested in the project after being persuaded by attractive pre-launch offers and assurances given by the developer and its representatives.
According to the complaint, the developer collected substantial amounts from buyers well before obtaining mandatory RERA registration for the project.
The complainant paid ₹14.95 lakh towards the purchase of a flat. However, despite repeated assurances regarding construction progress and timely completion, the project witnessed almost no development.
TG RERA Finds Violation of RERA Registration Rules
During the proceedings, TG RERA found that the promoter had advertised, marketed, accepted bookings, and collected money from homebuyers before obtaining project registration, which is prohibited under the RERA Act, 2016.
The Authority observed that developers cannot advertise or sell any real estate project requiring registration unless the project has first been registered with the respective Real Estate Regulatory Authority.
TG RERA held that the promoter had violated these mandatory legal provisions.
‘Investment Agreements’ Treated as Sale Agreements
One of the significant findings of the Authority was regarding the documents executed between the builder and buyers.
The developer had collected money through documents described as “Investment Agreements.”
However, TG RERA held that these agreements were, in substance, agreements for the sale of residential units, irrespective of the terminology used by the promoter.
The Authority observed that the builder had induced prospective purchasers through pre-launch investment schemes, effectively bypassing the safeguards provided under RERA.
Construction Progress Found to Be Only 1%
TG RERA also reviewed the actual status of the project.
The Authority found that only around 1% of the construction work had been completed, indicating that the project was nowhere near completion despite substantial collections from buyers.
The order noted that the developer failed to fulfil the commitments made to purchasers and that the project remained far behind schedule.
Refund of ₹14.95 Lakh with Interest Ordered
Considering the violations and lack of progress, TG RERA directed R Homes to refund ₹14.95 lakh paid by the complainant along with applicable interest as provided under the provisions of the RERA Act.
The order provides relief to the homebuyer who had remained stuck in the delayed project after investing based on the developer’s representations.
Builder Restrained from Selling or Advertising the Project
Apart from granting refund relief, TG RERA passed several important directions against the developer.
The Authority ordered that the company shall not advertise, market, sell, book, or collect any further money from prospective purchasers in respect of the Jai Vasavis ORR Heights project until further orders.
This restriction aims to prevent additional homebuyers from being affected while regulatory proceedings continue.
Penalty Proceedings and Possible Registration Revocation
TG RERA further directed its officials to initiate proceedings for imposing statutory penalties against the promoter.
The Authority also ordered issuance of a show-cause notice asking the developer to explain why the project registration should not be revoked under the provisions of the RERA Act.
Depending on the promoter’s response, further regulatory action may follow.
Earlier EOW Case Against Promoters
The order also comes against the backdrop of criminal proceedings initiated in 2024.
The Cyberabad Economic Offences Wing (EOW) had arrested Chakka Bhaskar, Chairman of R Homes Infra Developments, and Sudharani, the Managing Director, in connection with an alleged fraud involving more than 200 homebuyers.
According to the allegations, the promoters collected nearly ₹48 crore from purchasers through pre-launch schemes before the project progressed as promised.
The criminal investigation is separate from the regulatory proceedings before TG RERA.
Importance of RERA Registration for Homebuyers
The order serves as a strong reminder that developers cannot legally advertise, accept bookings, or collect money for projects requiring registration before obtaining RERA approval.
Homebuyers should always verify:
- Project RERA registration number.
- Project approval status.
- Construction progress.
- Legal documents uploaded on the RERA portal.
- Promoter’s compliance history.
Proper verification before investing can significantly reduce the risk of delays, financial losses, and fraudulent transactions.
