In a significant move to uphold regulatory standards in the real estate sector, the Telangana State Real Estate Regulatory Authority (TSRERA) has imposed a penalty of ₹19.80 lakh on TMR Infra Tech. This action stems from the company’s collection of advance payments from customers for its TMR Marvel Villas project prior to obtaining the necessary TSRERA registration.
Background of the Violation
TMR Infra Tech embarked on the development of TMR Marvel Villas, a residential project located in Macha Bollaram near Alwal, Hyderabad. However, the company commenced collecting advance payments from prospective buyers before securing the mandatory registration with TSRERA. This practice contravenes the Real Estate (Regulation and Development) Act, 2016, which mandates that all real estate projects be registered with the respective state RERA authorities prior to any marketing or financial transactions.
Homebuyers’ Concerns and Regulatory Action
TSRERA’s decision was driven by numerous complaints from homebuyers regarding project delays and unmet promises. Buyers reported that the developer failed to provide key amenities, including:
- Water supply with softening treatment
- Street lighting
- Compound walls and solar fencing
- Community parks and a clubhouse
- Proper drainage and sewage disposal system
There were significant delays in the project’s completion, leaving homeowners in prolonged uncertainty.
Recognizing the severity of these issues, TSRERA took decisive action, issuing strict directives to the builder to fulfill these commitments and ensure timely delivery of the promised facilities.
TSRERA’s Verdict on TMR Infra Tech
The Telangana RERA board, led by Chairperson Dr. N Satyanarayana and members K Srinivasa Rao and Laxmi Narayana Jannu, found TMR Infra Tech guilty of major compliance violations. The penalty was imposed due to the following infractions:
- The developer collected payments from buyers between February 5, 2018, and March 6, 2018, despite obtaining RERA registration only on October 5, 2019.
- This action directly violated Section 3 of the RERA Act, which mandates project registration before any financial transactions.
As a result, TSRERA has ordered the developer to complete all pending infrastructure and promised amenities before the project’s registration expires in March 2025.
TSRERA’s Directives to TMR Infra Tech
In response to the findings, TSRERA issued several directives to TMR Infra Tech:
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Completion of Pending Works: The company is mandated to expedite the installation of street lights, construction of the compound wall, and establishment of the STP.
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Provision of Utilities: Adequate arrangements for water supply and proper drainage facilities must be ensured to meet the residents’ needs.
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Adherence to Deadlines: All pending works and amenities are to be completed before the project’s RERA registration expires in March 2025.
TSRERA has emphasized that failure to comply with these directives within the stipulated timeframe will invoke further penalties under Section 63 of the Real Estate (Regulation and Development) Act.
Legal Consequences and Compliance Measures
TSRERA has warned that any further violations by TMR Infra Tech will lead to harsher penalties and legal repercussions. The authority has also emphasized the importance of strict adherence to RERA regulations, urging all real estate developers in Telangana to avoid collecting payments before securing proper registration.
Implications for the Real Estate Sector
This enforcement action by TSRERA underscores the authority’s commitment to ensuring transparency and accountability in Telangana’s real estate sector. It serves as a cautionary tale for other developers about the repercussions of non-compliance with regulatory mandates. Such measures are pivotal in safeguarding consumer interests and fostering trust in the real estate market.
Conclusion
The ₹19.80 lakh fine imposed on TMR Infra Tech highlights the critical importance of adhering to regulatory requirements in real estate development. Developers must prioritize compliance to avoid legal consequences and maintain their reputation in the industry. For homebuyers, this incident reinforces the necessity of due diligence and awareness of their rights under the Real Estate Regulatory Authority Act.
