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A group of homebuyers in Telangana has accused a construction firm of cheating after collecting substantial advance payments for a proposed villa project in Kollur, near Hyderabad, without initiating development or securing statutory approvals. Complaints filed with the Cyberabad Police's Economic Offences Wing (EOW) led to the registration of a criminal case under provisions related to cheating and criminal breach of trust. Buyers claimed they were persuaded to invest in the project under a pre-launch offer, with one purchaser reportedly paying INR 1.38 crore towards a villa valued at INR 1.60 crore. Investigations revealed that the project had neither received approvals from the Telangana Real Estate Regulatory Authority (RERA) nor the Hyderabad Metropolitan Development Authority (HMDA), raising concerns over compliance and project legitimacy.
The Economic Offences Wing (EOW) of the Cyberabad Police registered a criminal case in recent days against a Telangana-based construction firm after multiple homebuyers alleged that the developer collected advance payments for a villa project in Kollur, near Hyderabad, without commencing construction or obtaining mandatory approvals. Advertisement
The case emerged following complaints from purchasers who stated that the firm had marketed a residential villa project under a pre-launch scheme and persuaded buyers to invest substantial amounts. One of the complainants reported that he had been approached by a company representative in 2023 and was encouraged to book a villa spread over approximately 200 square yards at a total consideration of INR 1.60 crore. Acting on these representations, the buyer paid INR 1.38 crore as an advance towards the property.
According to the complaint, the project had not secured approvals from key regulatory authorities, including the Telangana Real Estate Regulatory Authority (RERA) and the Hyderabad Metropolitan Development Authority (HMDA), at the time when funds were collected from buyers. Despite this, the firm is alleged to have continued accepting payments without disclosing the absence of statutory clearances.
Police officials indicated that the developer had neither initiated construction activity on the site nor obtained the required permissions in the period following the payments. Buyers alleged that there had been no visible progress on the ground, raising concerns about the viability and intent of the project.
Based on the complaints, the EOW registered a case against the firm's management under relevant provisions of the Bharatiya Nyaya Sanhita, including sections dealing with cheating and criminal breach of trust. The investigation is expected to examine the financial transactions, project approvals, and representations made to buyers at the time of booking.
The incident adds to a series of cases in the Hyderabad metropolitan region where homebuyers have raised concerns over pre-launch offers and projects marketed without regulatory approvals. Under existing norms, developers are required to obtain RERA registration and local planning approvals prior to advertising or selling residential units, particularly in large-scale villa or plotted developments.
Industry observers note that such disputes often arise in peripheral growth corridors such as Kollur, where rapid residential expansion has led to increased project launches, including pre-launch offerings aimed at early-stage buyers. The absence of approvals at the time of sale can expose buyers to financial and legal risks, particularly in cases where construction timelines remain uncertain.
Authorities have indicated that further action will depend on the findings of the ongoing investigation, including verification of documents and financial records associated with the project.
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