Co fined for collecting money sans RERA nod

Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of 8.3 lakh on a city-based builder for collecting booking amount prior to obtaining RERA registration. The authority also directed the builder to reimburse two complainants 2 lakh within 30 days. Complainants D Shruti and D Shravya had alleged they paid 4 lakh as advance in Nov 2020 for flats in Jai Vasavi's Bliss Heights project at Yamnampet in Ghatkesar and the builder had promised to deliver it within two and a half years. However, the project lacked construction permissions even after three and a half years and the builder failed to deliver the flats, they said, adding that the builder refunded only 2 lakh and withheld the remaining amount. In its counter, the builder claimed that the complainants agreed to a full and final settlement of 2 lakh in May 2024 and surrendered all original receipts as part of the compromise.TG RERA reviewed the documents and determined that the builder had collected the booking advance in 2020 well before obtaining RERA registration in Sept 2023. This violated Sections 3 and 4 of the Real Estate (Regulation and Development) Act, which mandates registration of real estate projects prior to offering flats for sale.In its order, TG RERA imposed the penalty under Sections 59 and 60 of the Act and directed the builder to refund the pending 2 lakh to the complainants.