Telangana RERA Cracks Down with Record Rs 4.7 Crore Fine for Illegal Pre-Launch Sales
In a decisive move to curb unlawful practices in the real estate sector, the Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a hefty penalty of Rs 4.7 crore on a local builder. This marks the highest fine ever levied in the state for violations related to illegal pre-launch sales of residential projects.
Action Triggered by Homebuyer Complaints
The authority's action was initiated following numerous complaints from aggrieved homebuyers who reported significant financial losses. These buyers had invested in a project that failed to materialize as promised, prompting TG-RERA to intervene and investigate the matter thoroughly.
Details of the Violation by Bharathi Builders
According to the order issued by TG-RERA, Bharathi Builders Pvt Ltd engaged in the pre-launch sale of its project, 'Bharathi Lake View Apartments' located in Kompally, Hyderabad, back in 2021. The builder collected substantial amounts from prospective buyers without obtaining the mandatory registration under the Real Estate (Regulation and Development) Act. Furthermore, no construction activity had commenced at the time of these sales, and the builder failed to deliver the project within the assured 24-month timeframe.
Authority's Directives and Penalties
In its ruling, TG-RERA declared Bharathi Builders as a "default promoter" and issued several critical directives:
- Refund Order: The builder must refund the entire amount paid by the complainants, along with interest as per Rule 15 of the Telangana Real Estate Rules, 2017, within 60 days.
- Penalty Imposition: A fine of Rs 3.56 crore has been slapped on the firm, which must be paid in addition to an earlier penalty of Rs 1.19 crore imposed for similar violations in previous proceedings.
- Joint Liability: The authority clarified that Sree Bharathi Builders, another entity involved in the project, also falls under the definition of "promoter" and will be jointly and severally liable for refunding the amounts to buyers.
Caution to Homebuyers on Pre-Launch Schemes
TG-RERA strongly cautioned homebuyers against investing in pre-launch schemes for projects that are not registered under RERA. The authority emphasized that such offers are strictly prohibited by law and do not provide regulatory oversight or financial safeguards. Prospective buyers are advised to verify the registration status of any real estate project on the official TG RERA portal before making any transactions to avoid potential risks and losses.
