RERA slaps 15L fine on developer | Hyderabad News
Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) imposed a penalty of 14.9 lakh on a real estate builder and its partners for failing to register their project ‘Aura Velimala Phase 1′ in Velimala, Sangareddy district, under the provisions of the Real Estate (Regulation and Development) Act, 2016. Additionally, the authority directed the builder to refund amounts paid by 62 allottees along with 11% interest. The complainants, M Prem Kumar of Dilsukhnagar and others, stated they entered into unregistered agreements of sale with the respondents, with possession promised by Dec 2023. As of June 2024, construction progress remained at 20%. Despite multiple communications, complainants received either vague or no responses. They alleged diversion of funds, citing continued sales efforts despite the stagnation on-site, with structural work in A and B blocks not even initiated. RERA found that the promoter failed to secure approvals from the HMDA prior to collecting funds, a violation of Sections 3 and 4 of the Act.RERA said respondents are embroiled in several criminal cases on account of complaints filed against them for siphoning funds and are not available to complete the construction and hand over the allotted apartments to them.RERA held the respondents jointly and severally liable to refund the amounts collected from buyers, along with statutory interest from the date of agreement until refund.Further, RERA ordered the respondents to apply for registration of the project without delay and restrained them from marketing or selling any units until registration is approved. Failure to comply with these directions will attract further penalties under Section 63 of the Act.
