Telangana RERA Imposes Heavy Penalty on Builder for Unauthorized Unit Allotments
In a significant crackdown on real estate malpractices, the Telangana State Real Estate Regulatory Authority (TGRERA) has ordered Bhuvanteza Infra Project Private Limited, based in Banjara Hills, to pay a substantial penalty of Rs 43.7 lakh. This penalty stems from the company's illegal allotment of units in its 'Tulasi Lake Front' project located in Suraram, within the Medchal–Malkajgiri district. The orders, issued on December 1, 2025, come in response to two separate complaints filed by aggrieved customers, highlighting serious violations under the Real Estate (Regulation and Development) Act.
First Complaint: Statutory Violations and Unfair Practices
The first case was filed by Maheshwaram Padma, a resident of Chintal, Tirumalagiri. TGRERA's investigation revealed that Bhuvanteza Infra had committed multiple statutory violations. Specifically, the company allotted a flat without having legal entitlement, misrepresented itself as the owner of the property, collected funds without proper authority, and engaged in unfair trade practices. These actions were found to be in direct contravention of the RERA Act, designed to protect homebuyers from such exploitative behaviors.
Based on these findings, TGRERA directed the company to pay a penalty of Rs 21.8 lakh within 30 days. This amount must be deposited into the TGRERA Fund, either via a demand draft or an online transfer. The authority issued a stern warning that failure to comply with this directive would result in additional penalties, emphasizing the seriousness of the violations.
Second Complaint: Allotment in Unregistered Block
The second complaint was lodged by T Usha Rani of Chintal, Quthbullapur mandal. In this instance, TGRERA discovered that Block 25, from which Bhuvanteza Infra had purportedly allotted a flat, was not a registered block under the 'Tulasi Lake Front' project. The authority noted that allotting units in an unregistered project component constitutes a severe violation of regulatory norms, undermining the integrity of the real estate sector.
Furthermore, the order highlighted that TGRERA had previously declared Bhuvanteza Infra a "defaulter" in its roles as both promoter and agent. As a result, the company is prohibited from undertaking, advertising, marketing, booking, selling, or registering any new projects, or acting as an agent, until all outstanding dues and compliance requirements are fully discharged. This restriction aims to prevent further misconduct and protect potential buyers from similar issues.
Earlier Order and Refund Directive
In a related earlier order, TGRERA had addressed a complaint where the affected party sought a refund. The respondent, Bhuvanteza Infra, expressed willingness to settle the matter. Consequently, Telangana RERA directed the company to refund the entire sale consideration along with interest at a rate of 10.7% per annum. This interest accrues from the date of the sale agreement, January 9, 2021, until the full amount is realized, ensuring that the complainant is compensated for the financial loss and inconvenience caused.
In the latest order pertaining to the second complaint, TGRERA imposed an additional penalty of Rs 21.8 lakh, also payable within 30 days. This brings the total penalty to Rs 43.7 lakh, reflecting the authority's firm stance against regulatory breaches in the real estate industry.
Key Takeaways:
- TGRERA's actions underscore its commitment to enforcing the RERA Act and safeguarding homebuyer interests.
- The penalties serve as a deterrent to other developers who might engage in similar illegal practices.
- Homebuyers are encouraged to report violations to regulatory authorities to ensure accountability and transparency in real estate transactions.
This case highlights the ongoing efforts by Telangana's real estate regulatory body to curb malpractices and promote a fair and transparent market environment. As the real estate sector continues to evolve, such regulatory interventions are crucial for maintaining trust and integrity among stakeholders.
