TGRERA Fines Developer ₹14.9 Lakh for Unregistered Aura Velimala Project | Homebuyer Rights

The Telangana Real Estate Regulatory Authority (TGRERA) imposed a hefty penalty of ₹14.9 lakh on Bhuvanteza Infrastructures LLP and its partners in June 2025 for illegally marketing their Aura Velimala Phase 1 project without proper RERA registration. The project, located in Velimala, Sangareddy district, violated critical provisions of the RERA Act by commencing sales and marketing activities before obtaining mandatory regulatory approval.

Major Penalty Details Revealed

The regulatory authority announced that Bhuvanteza Infrastructures LLP and its partners would jointly bear a ₹14.9 lakh penalty for their non-compliance. The enforcement action affected 62 homebuyers who had signed unregistered sale agreements between 2021 and 2023, believing they were investing in a legitimate project.

TGRERA ordered the developer to refund all payments collected from buyers with an 11% annual interest rate. The authority also mandated that the company must completely halt all marketing and sales activities until they obtain proper RERA registration for the project.

Construction Delays and Broken Promises

Investigation revealed that only approximately 20% of the construction had been completed as of June 19, 2024, despite the developer's original promise to deliver homes by December 2023. This significant delay left numerous families in financial distress, as they continued paying both home loan EMIs and rental expenses simultaneously.

The project area exceeded 7,300 square meters, far surpassing the 500 square meter threshold that mandates RERA registration. This finding exposed the developer's deliberate attempt to avoid regulatory oversight while conducting substantial real estate operations.

Homebuyers Face Financial Hardship

Affected buyers experienced severe financial strain while managing dual payment obligations without receiving possession of their promised homes. Many families struggled with the burden of paying rental accommodation costs alongside home loan EMIs for properties they could not occupy.

Adding to their concerns, the land had not been properly registered in the buyers' names, creating fears about potential rerouting or unauthorized resale by the developer. This situation highlighted the vulnerability of homebuyers when dealing with properties without RERA registration.

Regulatory Authority Takes Strong Action

TGRERA dismissed the builder's excuses about pending statutory clearances, emphasizing that the RERA Act provides no exceptions for unregistered projects regardless of approval status. The authority established joint and several liability, requiring complete refunds within 30 days along with statutory interest payments.

The regulator warned that any continued marketing or sales activities before obtaining proper RERA registration could result in additional penalties under Section 63 of the Act. This enforcement demonstrates the authority's commitment to protecting homebuyer rights and ensuring developer compliance.

Broader Implications for Real Estate Sector

This penalty case establishes a significant precedent for the real estate industry across Telangana and serves as a warning to developers nationwide. The ruling reinforces that all real estate projects must complete RERA registration before initiating any sales or marketing activities, regardless of project size or location.

The decisive action by TGRERA demonstrates the regulator's resolve to maintain strict compliance standards and protect buyer interests in the state's housing market. This enforcement sends a clear message about the consequences of operating without proper regulatory approval.

Industry experts suggest that such stringent enforcement will likely encourage greater compliance among developers and provide increased confidence to potential homebuyers considering investments in Hyderabad's real estate market.

Summary

TGRERA's ₹14.9 lakh penalty against Bhuvanteza Infrastructures LLP reinforces the critical importance of RERA compliance in real estate operations. The comprehensive refund order with interest, combined with strict sales restrictions, demonstrates the authority's commitment to buyer protection and regulatory enforcement. This landmark ruling serves as a firm reminder to developers that regulatory compliance cannot be compromised and establishes a strong precedent for similar cases across India's real estate sector.