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The Telangana Real Estate Regulatory Authority (TGRERA) recently mandated Sandstone Infra (India) to refund INR 38 lakh to a homebuyer and pay an additional penalty of INR 9 lakh. This action, following an order issued last week, stemmed from the developer's failure to register its Medchal layout project and marketing plots without mandatory regulatory approval. TGRERA declared the firm a defaulter for violating the Real Estate (Regulation and Development) Act, which strictly prohibits advertising or selling units in unregistered projects, underscoring the authority's commitment to ensuring transparency and protecting homebuyers' interests.
The Telangana Real Estate Regulatory Authority (TGRERA) has recently taken stringent action against Sandstone Infra (India), directing the developer to refund the full sum received from a homebuyer and imposing a substantial penalty. In an order issued last week, TGRERA mandated that the firm repay Pinnoji Radha Krishna all collected funds and additionally pay a fine of INR 9 lakh for failing to register its Medchal layout project as required by law. Advertisement
The regulatory body declared Sandstone Infra (India) a defaulter, citing the developer's violation of crucial provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA). This foundational legislation was enacted to foster transparency, accountability, and consumer protection within India's real estate sector. A core mandate of RERA, specifically Section 3(1), strictly prohibits any developer from advertising, marketing, booking, or selling units in a real estate project without its prior registration with the relevant Real Estate Regulatory Authority.
Pinnoji Radha Krishna had lodged a complaint with TGRERA, detailing a transaction from May 2019. At that time, Sandstone Infra's managing director had agreed to sell a 167 sq yd plot for INR 38 lakh. The buyer proceeded to pay three installments, with the understanding that subsequent payments would follow only upon the developer securing necessary development charge approval and permission from the Hyderabad Metropolitan Development Authority (HMDA).
However, the complainant stated that to date, the developer had neither obtained the development charge approval letter nor secured the HMDA permission. Such a failure to obtain mandatory approvals and register the project goes against the very spirit of RERA, which aims to safeguard homebuyers from financial mismanagement, project delays, and fraudulent practices.
TGRERA, in its decisive ruling, instructed the company to refund all sums paid by the buyer, reinforcing the authority's commitment to upholding consumer rights in the state's real estate market. This ruling serves as a stark reminder to developers about the imperative of strict adherence to RERA guidelines.
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