Penalty for Violating Real Estate Regulations
The Telangana Real Estate Regulatory Authority (TGRERA) has imposed a penalty of Rs 4.2 lakh on a real estate builder for breaching Sections 3 and 4 of the Real Estate (Regulation and Development) Act (RERA). The penalty was levied after it was discovered that the developer promoted and advertised the “Sanali Pinnacle” project without registering it with TGRERA or securing mandatory approvals from the Greater Hyderabad Municipal Corporation (GHMC).
Unapproved Project Promoted Without Registration
The “Sanali Pinnacle” project, consisting of two cellars and 17 upper floors, is located in Shaikpet, Hyderabad. The complainants, including landowner Mohammed Mushtaq, had entered into a development agreement with the respondent company on April 30, 2021. The agreement clearly stipulated that construction would commence only after obtaining the necessary approvals. However, even after three years, the required permissions were not secured, and excavation reportedly began at the site without GHMC’s approval.
Digital Advertisements Flagged as Violations
Despite lacking approvals and registration, the builder actively marketed the project. The authority found that the project was advertised on the company’s website, described as featuring 40 “uber-luxurious” units. Additionally, the project was listed on real estate platforms, Google, and various hoardings with promotional messages such as “Sanali Coming Soon…” and “Exquisitely crafted residences for exceptional 40.”
In its defense, the company argued that the online material did not qualify as an advertisement under the law. However, TGRERA ruled that the content met the definition of “advertisement” as per Section 2(b) of the Act, thereby confirming the violation.
Penalty Imposed and Warning of Further Action
TGRERA has directed the builder to pay the penalty into the TGRERA fund within 60 days via the specified HDFC bank account. Furthermore, the authority instructed the company to immediately register the project and refrain from any marketing or sales activities until registration is completed. Failure to comply with these directives will lead to further penalties under Section 63 of the Act. Until registration is obtained, the promoter is prohibited from booking, selling, or offering any unit for sale in the “Sanali Pinnacle” project.
The ruling reinforces TGRERA’s commitment to regulating the real estate sector and ensuring compliance with the law to protect homebuyers from misleading promotions and unauthorized developments.
