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The Telangana Real Estate Regulatory Authority (RERA) imposed significant penalties on two developers earlier this week for breaching project norms and misleading homebuyers. One developer was penalised for unauthorised construction and failure to deliver promised amenities, while another faced action for selling plots without RERA registration. The authority directed both developers to refund amounts with interest and to carry out necessary rectifications at their own cost. These actions highlight the regulator's growing emphasis on accountability and consumer protection within the real estate industry.
The Telangana Real Estate Regulatory Authority has taken strong action against two developers after identifying major violations in their respective projects. Earlier this week, Haris Pranava Constructions was penalised INR 6.33 crore following a complaint lodged by a flat owners' cooperative society in their 'Pranava Zenith' project located at Peerzadiguda. The society alleged that the builder had deviated from the approved plans and failed to provide several promised amenities. Among the deficiencies highlighted were water seepage issues and the absence of toilet facilities on the stilt floor. Advertisement
In response, the regulatory authority ordered the builder to rectify all deviations and address complaints within 30 days, explicitly stating that the costs of these rectifications must not be passed on to the allottees. Furthermore, the developer was directed to cease using any project name other than the officially registered one and to stop making unauthorised modifications to the layout and amenities.
In a separate case, Kapstone Properties India Pvt Ltd was fined INR 17.5 crore for marketing and selling plots under the project name 'Little Woods' without registering the project with RERA. The developer had reportedly collected significant payments from buyers through memoranda of understanding, even before obtaining formal approvals.
The authority instructed the company to refund all collected amounts with 11% interest within 30 days and declared the managing director a defaulter. Additionally, the company and its affiliated entities were to be listed on the public defaulters' list maintained by the authority. These decisions were aimed at ensuring that non-compliant developers are held accountable and that buyer interests remain protected.
By penalising developers for unapproved changes, marketing unregistered projects, and neglecting buyer commitments, the authority has sent a clear message that violations will not be tolerated. The decisions also set a precedent for future enforcement, as developers are now on notice that non-compliance could lead to substantial penalties and reputational damage. Importantly, RERA's intervention ensures that affected homebuyers are not left to bear the financial or structural consequences of a developer's shortcomings, thereby strengthening trust in the state's regulatory framework.
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