RERA takes tough measures against three errant realtors
HYDERABAD: The Telangana Real Estate Regulatory Authority (TG RERA) has recently taken major steps, including slapping fines, in three separate cases involving misrepresentation in project applications and delayed refunds.
RERA fined Western Constructions Rs 11.54 lakh for having provided incorrect information in its application for the ‘Western springs’ project. A complaint filed by a legal heir of Vasudev Khemchand on November 15, 2023 alleged that the developer had falsely stated there were no pending litigations on the project, even though a civil dispute over property ownership remains pending. Although Western constructions admitted the omission was an error, they denied other allegations and argued that title disputes should be handled by civil courts. RERA, however, found the misrepresentation to be a clear violation and directed the developer to pay the penalty. It also noted that due to the ongoing civil litigation over the property, it does not have the power to decide on the title dispute at this stage.
The authority advised that any illegal actions related to the development should be addressed by the appropriate civil court. Moreover, parties aggrieved by this order have the right to appeal to the real estate appellate tribunal within 60 days from the receipt of the order.
In a second case, RERA ordered Vazhraa Nirmaan Pvt. Ltd to pay a penalty of Rs 10,60,318 for its ‘Vazhraa Prathik’ project. The complaint stated that the developer had promised exclusive access to a clubhouse and an amenities block for society members. Instead, the developer built a wall that blocked access to the ground, first and second floors of the clubhouse and even attempted to sell these areas to third parties. Additionally, the government mandated solar lighting and water heating systems were not installed. RERA ruled that the developer must follow the approved sanction plan without deviations, remove any barriers that restrict access to common areas and install the required solar facilities within a reasonable time.
In a separate matter, RERA resolved a long-standing refund dispute involving flat buyer Kolla Lakshmi Kumari, who had paid Rs 5 lakh in May 2023 to book a flat with Aliens Developers private ltd. After canceling her booking through a cancellation deed, she was promised a refund in five equal installments starting in December 2023. However, she did not receive the refund as scheduled by September 2024, causing financial difficulty. The developer claimed that the cancellation was voluntary and that the full refund had been paid on February 13, 2025. RERA explained that under the law, a buyer remains an allottee until the full refund is received on time. Since the refund was delayed, her complaint was valid when filed. With the complete refund eventually received, RERA ruled that the dispute is now resolved.
