In a significant interim order, the Telangana Real Estate Regulatory Authority (TG RERA) has restrained a landowner and developer from alienating a villa plot in the ‘Dhriti Nirvana’ project at Zaheerabad, following allegations of fraud and unlawful cancellation of earlier development agreements.
The order was passed in Complaint No. 800/2025 by a bench comprising Chairperson Dr. N. Satyanarayana and Members K. Srinivasa Rao and Laxmi Narayana Jannu. The interim direction aims to protect the homebuyer’s substantial financial interest pending final adjudication.
₹45 Lakh Paid for Villa, Project Left Incomplete
According to the complaint, the buyer entered into an Agreement to Sell dated July 9, 2021, with Dhriti LiveSpaces Pvt. Ltd. for purchase of a fully constructed villa on Plot No. 63 in the ‘Dhriti Nirvana’ project for ₹50 lakh.
The developer allegedly promised completion and possession by December 23, 2021, with compensation at 3% per month in case of delay.
The complainant paid ₹40 lakh between July and November 2021, followed by an additional ₹5 lakh in May 2022 after the developer cited financial constraints and the Covid-19 pandemic. Despite payment of ₹45 lakh — amounting to 90% of the agreed consideration — the villa reportedly remained incomplete and possession was not offered.
Fresh Development Agreements Executed Without Buyer’s Knowledge
The dispute escalated when the complainant discovered that original development agreements dated March 8, 2021 were unilaterally cancelled in late 2022 without prior notice.
Subsequently:
Fresh development agreements dated May 18, 2024 were executed
An irrevocable General Power of Attorney dated August 31, 2024 was granted in favour of Skandaya Infrastructures Pvt. Ltd.
The new documents covered the same land, including Plot No. 63
It was alleged that the property was mischaracterised as a bare plot despite the existence of a partially constructed villa, suggesting fraudulent intent and collusion to resell the property.
Apprehension of Imminent Sale to Third Parties
The complainant informed TG RERA that similar villas in the project were being marketed under a different name and that Plot No. 63 was at risk of being alienated to third parties.
After examining the record, the Authority observed that the complainant had established a prima facie substantial interest, having paid 90% of the total sale consideration.
TG RERA further noted a reasonable apprehension of imminent alienation, which could render the complaint proceedings infructuous if third-party rights were created.
Interim Restraint Order Issued
Pending final disposal of the complaint, TG RERA passed an interim restraint order prohibiting:
Creation of any third-party rights
Transfer of title or interest
Mortgage, lease, or encumbrance over Plot No. 63
The restraint applies to the landowner, the new developer, and their agents or representatives.
The property measures 763.53 square yards and forms part of a larger layout spread over approximately 26 acres in Hothi-B village, Zaheerabad mandal.
The interim order will remain in force until further orders, and the matter has been posted for hearing on March 17, 2026.
Legal Significance Under RERA Framework
Under the Real Estate (Regulation and Development) Act, 2016, regulatory authorities have the power to pass interim orders to safeguard the interests of homebuyers and prevent frustration of proceedings.
This order highlights several key legal principles:
Substantial payment creates a protectable interest in the property
Unilateral cancellation of development agreements without notice raises serious legal concerns
Creation of third-party rights during pendency of disputes may attract regulatory intervention
Interim protection can be granted to preserve status quo
Impact on Real Estate Transactions
The ruling underscores the importance of transparency in development agreements and the need for developers and landowners to avoid unilateral actions that may prejudice existing buyers.
For homebuyers, the case demonstrates that:
RERA authorities can intervene swiftly to prevent alienation
Substantial financial contribution strengthens claims for interim relief
Fraudulent misrepresentation of property status may invite regulatory scrutiny
The final outcome of the case will further clarify accountability and contractual obligations among landowners, developers, and buyers in villa and plotted development projects.
