Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has imposed penalties totalling ₹10 crore in 11 suo motu cases against developers, promoters and intermediaries for violations ranging from marketing unregistered projects and accepting pre-launch bookings to concealing civil litigation, misrepresenting project details and operating as real estate agents without registration.TG RERA found that several developers had advertised, marketed or sold plots, villas and commercial units without obtaining the mandatory registration required under the Real Estate (Regulation and Development) Act.
The authority viewed the marketing and sale of units without prior registration as a violation that struck at the regulatory framework intended to ensure transparency in real estate transactions. The other cases involved non-disclosure of pending litigation over project land, misleading advertisements, failure to display registration numbers and unauthorised real estate agency activity.Eight unregistered projects marketedProject non-registration under Section 3 of the Act was cited in cases involving Indo Qatar Projects, Samooha Projects, Birds of Paradise, Honey Dew Infrastructure and Iconic Infra Group, GNR Infra Developers, SLN Infra Projects and Myron Homes.TG RERA found that Indo Qatar Projects Pvt Ltd had advertised, marketed and sold plots in eight projects without registration. It also acted as an unregistered real estate agent for the Pranamam project by facilitating sales before securing an agent registration.Samooha Projects Pvt Ltd marketed completed, ongoing and proposed projects under a common brand without registering them. The company was also found to have acted as an agent for third-party ventures, including Pharma Avenue, without the statutory registration required under Section 9.In the Birds of Paradise case, the authority found that landowners and developers had promoted and sold plots in a residential layout without registering the project. An individual respondent was also penalised for acting as an unregistered agent, executing sale agreements and collecting money for plots that he did not own.Honey Dew Infrastructure sold 87 plots in the Metro County project without obtaining RERA registration. Iconic Infra Group acted as an unregistered agent and issued advertisements carrying its branding, creating the impression that it was the project developer.GNR Infra Developers had obtained registration for a project covering 57 villas but used it to market a larger development of more than 300 villas under the name Anvaya Villas. The authority held that the promoter had misrepresented the project’s scope and attempted to circumvent the registration requirement.SLN Infra Projects marketed and sold units in SLN Sundaram Palm Villas without registration. It had claimed during legal proceedings that the project was meant only for private family use and was not intended for sale to the public.Myron Homes Pvt Ltd used promotional brochures and media broadcasts to invite public interest and offer commercial units in the proposed Myron Mall before obtaining mandatory registration.Litigation concealed, project details misrepresentedGeethika Developers and Gangothri Builders faced action for failing to disclose pending civil litigation while applying for project registration under Section 4 of the Act.In the Geethika’s Ensconsia case, the promoter submitted a declaration stating that the project land was free from litigation, though three civil suits concerning title and possession were pending.Gangothri Builders obtained registration for Prithvi Towers without disclosing a subsisting civil suit which directly concerned the title and ownership of the project land.Misrepresentation and misleading advertisements under Section 12 were cited in the cases involving Iconic Infra Group and GNR Infra Developers. TG RERA found that the advertisements either created a misleading impression about the entity developing the project or understated the actual size and scope of the development.Fortune Infra Developer was penalised for allowing advertisements for Fortune Butterfly City to be issued without displaying the mandatory RERA registration number, in violation of Section 11(2). Alluru Naveen Reddy, a purchaser of plots in the project, was also penalised for acting as an unregistered real estate agent after independently placing a newspaper advertisement offering his plots for sale.Pre-launch bookings before registrationSensation Infracon Pvt Ltd was proceeded against for accepting substantial bookings and payments for units in Hyderabad One several months before registering the project with TG RERA. The authority treated the transactions as pre-launch sales made in violation of the requirement that a project must be registered before units are advertised, marketed, booked or sold.The 11 cases did not involve identical violations. However, TG RERA’s orders covered breaches of provisions governing prior project registration, disclosure of litigation, registration of real estate agents, display of RERA numbers in advertisements and protection of buyers against misleading representations.Penalties imposedIndo Qatar Projects Pvt Ltd: A consolidated penalty of ₹38,63,268. This includes ₹30,66,511 for failing to register eight projects and ₹7,96,757 for acting as an unregistered real estate agent.Samooha Projects Pvt Ltd: A consolidated penalty of ₹4,19,74,650. This comprises ₹4,15,78,400/ for the non-registration of multiple projects and ₹3,96,250/- for facilitating sales as an unregistered agent.Geethika Developers: A penalty of ₹19,57,601/- for failing to disclose pending civil litigation regarding the project land at the time of registration.Gangothri Builders: A penalty of ₹7,98,000/- for the non-disclosure of a subsisting civil suit affecting the title and ownership of the project land.Birds of Paradise: A total penalty of ₹21,17,360. This is split between the landowners , who were fined ₹12,70,400/-, and an individual , who was fined ₹8,46,960/- for acting as an unregistered agent.Iconic Infra Groups & Honey Dew Infrastructure: A total penalty of ₹16,97,325/-. Honey Dew was fined ₹10,18,395/- for non-registration, while Iconic Infra Group was fined ₹6,78,930/- for acting as an unregistered agent and issuing misleading advertisements.GNR Infra Developers: A penalty of ₹2,14,51,440/- for misrepresenting a project’s identity and marketing a substantially larger development than what was registered.Fortune Infra Developer & Alluru Naveen Reddy: A total penalty of ₹8,54,820/-. Fortune Infra (Respondent No. 1) was fined ₹7,59,840/- for failing to display the RERA number in an advertisement, and Alluru Naveen Reddy (Respondent No. 2) was fined ₹94,980/- for acting as an unregistered agent.Sensation Infracon Private Limited: A penalty of ₹1,43,92,932/- for accepting bookings and consideration for units prior to obtaining project registration.SLN Infra Projects: A penalty of ₹10,77,520/- for advertising and marketing a project without mandatory registration.Myron Homes Pvt. Ltd.: A penalty of ₹1,14,00,932/- for engaging in structured promotional activities and offering commercial units for sale without prior registration.
