Cleared: dkHyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has imposed a penalty of 4.5 lakh on Roy All Diamond Infra Developers for misrepresentation and unauthorised marketing of a residential plot. The authority found that the firm collected 9 lakh from complainant Madikonda Mallesh without any legal ownership or authorisation over the property in question.Mallesh, a 40-year-old govt employee from Mallapur, filed the complaint after discovering that the plot he agreed to purchase in the venture ‘Kaasvi E-City’ did not belong to the respondent. According to the complaint, Nayak introduced himself as a partner in Roy All Diamond Infra Developers and claimed to be the absolute owner of Plot No. 43, measuring 150 square yards in Ferozguda village, Ibrahimpatnam mandal. He demanded a sale consideration of 36 lakh and received 9 lakh as advance through multiple payments in March 2024.Nayak executed a sale agreement on June 7, 2024, with a clause requiring the balance payment of 27 lakh within 40 days. However, the respondent became untraceable after signing the agreement. Upon verifying the property’s Encumbrance Certificate, the complainant discovered that the land actually belonged to another real estate developer. Furthermore, RERA registration number cited in the respondent’s brochure was found to be false.TGRERA Orders Refund with Interest and Seeks Probe into Project PromotersTGRERA, in its findings, observed that the respondent had no legal title or authority over the land and that his conduct constituted a violation of Sections 11(4)(a) and 12 of the Real Estate (Regulation and Development) Act, 2016. In addition to the penalty under Section 61, the authority directed the respondent to refund the 9 lakh received from the complainant with 11% annual interest, calculated from the date of each payment until the amount is realised. The refund has to be completed within 30 days from the date of the order.Noting “unauthorised and deceptive conduct,” the authority also instructed Telangana RERA secretary to initiate an inquiry and issue a show cause notice to the registered promoters of Kaasvi E-City. The notice seeks a written explanation on whether Nayak was ever authorised to market or collect payments for the project, and requires submission of all related agreements and correspondence.The order was issued under Sections 37 and 38 of the RERA Act, empowering the authority to take such enforcement actions. The authority has made it clear that any further non-compliance with the refund or penalty payment timelines would invite additional consequences under the Act.
