TGRERA Imposes Daily Penalty on Developer for Non-Compliance in Hyderabad Real Estate Case
The Telangana Real Estate Regulatory Authority (TGRERA) has taken stringent action against a real estate developer, ordering them to pay a penalty of Rs 3,000 per day for non-compliance with a previous directive. This decision stems from a complaint filed by Ch Venkateswara Rao, a resident of Khajaguda in Hyderabad, highlighting ongoing issues in the real estate sector.
Background of the Complaint and Project Details
The complaint centers on the Green Space Bagiratha project, located in Aurangabad village within Medak district. This residential layout spans a total extent of 4 acres and has been a source of contention for the complainant. Rao specifically sought the completion of the project as per the norms outlined in the initial brochure, the acquisition of a No Objection Certificate (NOC), and the public display of the DTCP draft layout plan along with the TLP number. These requests are standard under real estate regulations to ensure transparency and adherence to approved plans.
Chronology of Non-Compliance and Authority's Actions
TGRERA's records reveal a pattern of non-compliance by the developer. An earlier order dated July 30, 2025, required the respondent to remit a penalty amount within 30 days, but this was not fulfilled. Following this, a notice issued on September 10, 2025, directing payment, also went unheeded. The situation worsened as the complainant submitted another application on November 8, 2025, stating that development works remained incomplete and statutory directions had not been implemented.
The authority noted critically that no documentary proof was provided to demonstrate the completion of development works or rectification of shortfalls in the project registration process. Furthermore, the developer neither requested an extension of time nor offered any reasons for the delays, exacerbating the case against them.
Show-Cause Notice and Final Ruling
In response to the ongoing issues, TGRERA served a show-cause notice under Section 63 of the Real Estate (Regulation and Development) Act on November 22, 2025. Despite this legal step, the respondent neither appeared before the authority nor filed a reply, indicating a lack of engagement with the regulatory process. Holding the default to be both continuing and wilful, TGRERA concluded that decisive action was necessary.
The final order mandates the payment of Rs 3,000 per day of default until compliance is achieved. This penalty will accumulate until it reaches 5% of the estimated project cost, whichever occurs earlier. This measure aims to enforce accountability and protect homebuyers' interests in Telangana's real estate market.
Implications for Real Estate Regulation in Telangana
This case underscores TGRERA's commitment to upholding real estate laws and ensuring developers adhere to regulatory standards. By imposing a daily penalty, the authority sends a clear message about the consequences of non-compliance, which could deter similar violations in the future. It also highlights the importance of homebuyers utilizing regulatory bodies to address grievances, as seen in Rao's proactive complaint.
For stakeholders in the real estate sector, this ruling emphasizes the need for:
- Timely completion of projects as per approved plans.
- Transparency in documentation and compliance with statutory requirements.
- Active engagement with regulatory authorities to resolve disputes.
As Telangana continues to develop its urban landscape, such regulatory actions are crucial for maintaining trust and integrity in the real estate industry, ultimately benefiting both developers and consumers.
