Telangana RERA Fines Builder Rs 13.74 Lakh for Agreement of Sale Violations
The Telangana State Real Estate Regulatory Authority (TGRERA) recently imposed a fine of Rs 13,74,436 on a builder for failing to adhere to the stipulated format of the Agreement of Sale while selling an apartment. The builder was also penalized for not registering the Agreement of Sale, both of which are violations under the Real Estate (Regulation and Development) Act, 2016 (RERA).
Violations Identified by TGRERA
The builder’s actions violated the following provisions under RERA:
- Violation of Section 13 Under Section 61: This mandates the registration of an Agreement of Sale upon its execution. The builder’s failure to do so resulted in a fine.
- Violation of Section 4 Read with Section 60: This requires that the Agreement of Sale must be identical to the draft agreement submitted to RERA during the project’s registration. The builder had deviated from this requirement by using a different Agreement of Sale.
The Complaint and Investigation
The complaint was filed by Veluri Adi Lakshmi against the builder Vineela Arani, who was constructing a stilt plus five-storied building at Park Avenue in Kondapur, Serilingampally Mandal.
- The complainant had planned to purchase a flat on the fifth floor for Rs 1,14,32,000 and had paid Rs 63,45,000 on various dates.
- The complainant approached TGRERA after the builder refused to register the Agreement of Sale and demanded additional money citing price escalation.
- The complainant ultimately decided to withdraw from the project. The builder returned all the paid amounts except for Rs 95,000, which was claimed as a ‘booking amount.’
RERA’s Decision
The three-member panel led by Chairman Dr. N Satyanarayana and members K Srinivasa Rao and Laxmi Narayana Jannu ruled in favor of the complainant in Complaint No. 158 of 2024.
The panel observed the following:
- Non-compliance with Rule 38: The Agreement of Sale must be identical to the draft submitted to RERA during the project’s registration. The builder had used a different Agreement of Sale, violating this rule.
- Failure to Register the Agreement of Sale: The Agreement of Sale signed on January 25, 2024, was not registered by the builder, breaching Section 13 of the RERA Act.
Penalty and Compliance Instructions
- The builder was ordered to pay Rs 13,74,436 to the RERA fund within 30 days.
- The builder was directed to ensure that all future Agreements of Sale strictly follow the format filed with RERA.
- TGRERA warned that any further violations would attract penalties under Section 63 of the Act.
This ruling reinforces the importance of compliance with RERA regulations to ensure transparency and accountability in the real estate sector, protecting homebuyers from unfair practices.
