The Telangana State Real Estate Regulatory Authority (TSRERA) has imposed a penalty of Rs 19.80 lakh on real estate firm TMR Infra Tech for collecting advance payments from customers before obtaining RERA registration for its project, TMR Marvel Villas. The penalty was issued after the Authority found the builder in violation of Section 3 of the Real Estate (Regulation and Development) Act, 2016 (RERA).
Violation of RERA Regulations
The TSRERA order stated that TMR Infra Tech had collected payments from customers between February 5, 2018, and March 6, 2018, even though the project obtained its RERA registration only on October 5, 2019. The regulatory body found this to be a clear breach of Section 3, which prohibits developers from selling, advertising, or collecting advances for a real estate project before it is registered under RERA.
TSRERA’s Directives to the Developer
Apart from the monetary penalty, TSRERA’s three-member board, comprising Chairperson Dr. N Satyanarayana, and members K Srinivasa Rao and Laxmi Narayana Jannu, issued directives to TMR Infra Tech to complete the pending works in the TMR Marvel Villas project, located in Macha Bollaram near Alwal. The Authority has instructed the builder to:
- Expeditiously complete the installation of street lights
- Construct the compound wall
- Set up a Sewage Treatment Plant (STP)
- Ensure proper water supply and drainage facilities
Customer Complaints and Unfulfilled Promises
The penalty and directives come in response to complaints filed by customers, who alleged that the developer failed to fulfill promised amenities, including:
- Water supply with softening facilities
- Street lighting
- Compound walls and solar fencing
- Parks and clubhouse facilities
Buyers expressed dissatisfaction over delays in these essential provisions, prompting TSRERA to intervene.
Completion Deadline and Legal Consequences
In response to TSRERA’s inquiry, TMR Infra Tech assured the Authority that the pending works would be completed by March 2025, before the project’s RERA registration expires. The Authority reminded the developer that failure to meet this deadline could invoke Section 63 of the RERA Act, which allows for further penalties and legal action.
The imposition of the Rs 19.80 lakh penalty reinforces the strict enforcement of RERA regulations and highlights the importance of compliance by real estate developers. The decision serves as a warning to other builders against violating provisions of the Real Estate (Regulation and Development) Act, 2016, ensuring transparency and accountability in the real estate sector.