HYDERABAD: The Telangana Real Estate Regulatory Authority (TG-RERA) has taken significant action against unlawful pre-launch sales of residential projects, imposing a landmark penalty of ₹4.7 crore on a local builder—marking the highest fine of its kind in the state.
This decision was prompted by numerous complaints from distressed homebuyers who claimed they lost investments in the project.
According to TG-RERA’s order, Bharathi Builders Pvt Ltd raised “substantial amounts” from buyers through pre-launch promotions for its project, ‘Bharathi Lake View Apartments’ in Kompally, in 2021, without securing the necessary registration under the Real Estate (Regulation and Development) Act. At the time of the sale, no construction activities had commenced. Despite promises of project completion within 24 months, the builder failed to deliver, as noted by the authority.
“Given the lack of any certainty regarding project completion, buyers are not obligated to remain invested. Therefore, the promoter is required to refund all amounts paid by the complainants along with interest, as stipulated under Rule 15 of the Telangana Real Estate Rules, 2017, within 60 days,” the authority stated, designating the builder as a “default promoter”.
The total penalty includes ₹3.56 crore for the recent violation, added to a prior fine of ₹1.19 crore levied for similar infractions. Additionally, another entity, Sree Bharathi Builders, involved in the project, has also been classified as a “promoter,” making both companies jointly liable for refunding buyers’ amounts.
In its advisory, the authority cautioned potential homebuyers against investing in pre-launch projects that lack RERA registration, emphasizing that such offers are “strictly prohibited under the law.” “Projects without RERA registration do not fall under our regulatory jurisdiction, which could lead buyers to forfeit safeguards found in registered projects. It is crucial for buyers to check the registration status on the official TG RERA portal (https://rera.telangana.gov.in) before engaging in any transactions,” the authority emphasized.
