HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) has imposed a penalty of ₹18.5 lakh on the Jubilee Hills Co-operative House Building Society Ltd for initiating a real estate project without the required registration under the Act.
The authority determined that the society breached the Real Estate (Regulation and Development) Act by advertising and collecting funds for its ‘Jubilee Hills Phase IV’ project located in Manchirevula village, Gandipet mandal, Ranga Reddy district, without RERA approval.
The directive requires the society to pay the penalty within 30 days into the TGRERA fund. Moreover, it has been barred from advertising, marketing, booking, selling, or offering for sale any unit in the project until the necessary registration is completed and all RERA regulations are followed.
This action was initiated following a complaint submitted on January 28, 2025, by advocate K. Jyothi Prasad Kosaraju, a society member, who cited alleged irregularities in the project’s marketing. The complaint stated that the society distributed pre-launch brochures and collected ₹5 lakh from prospective buyers, totaling nearly ₹90 crore from around 1,800 members.
Additionally, it was claimed that membership to the society was contingent on purchasing flats valued at approximately ₹2 crore each, which were being developed by a third party. The proposed developer, Verdant Builders, reportedly did not possess approvals from either RERA or the Hyderabad Metropolitan Development Authority (HMDA).
In response, the society argued that the complaint was not valid since it was not submitted in the proper format as stipulated by the Act. It maintained that the complainant did not qualify as an “aggrieved person” and that informal representations should not be considered by RERA. The society also alleged that the complaint was politically motivated. However, the authority dismissed these objections and proceeded with the penalty under its suo motu authority.
