RERA imposes 43 lakh fine on builder in Hyderabad

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1️⃣ Selling Flats Without Legal Authority

The company 'Bhuvanteza infra Project Pvt ltd', allotted (sold) flats in 'Tulasi Lake front' project at Medchal without having legal ownership or entitlement over those units.

Under the :

  • A promoter must have clear legal title to the land.
  • They cannot sell units unless they are legally authorized.

👉 The company falsely presented itself as the owner and collected money without proper rights.
This is a major statutory violation.

2️⃣ Selling Units in an Unregistered Block

One complaint showed that:

  • Block 25 was not registered under RERA
  • Yet the company allotted a flat in that block.

RERA law requires:

  • Every real estate project (and each phase/block) must be registered before advertising or selling.
  • Selling in an unregistered part of a project is illegal.

👉 This is considered a serious violation.

3️⃣ Unfair Trade Practices

The authority found that the company:

  • Misrepresented facts
  • Collected money without authority
  • Gave buyers incorrect information

Under RERA, misleading buyers or hiding material facts is classified as unfair trade practice, which attracts penalties.

4️⃣ Ignoring Earlier RERA Restrictions

The company had already been declared a:

  • Defaulter as promoter and agent
  • Barred from advertising, marketing, booking, or selling new projects

Yet violations continued.

👉 Disobeying RERA directions leads to further financial penalties.

5️⃣ Refund with Interest

In an earlier order, RERA directed the company to:

  • Refund the full amount
  • Pay 10.7% annual interest from Jan 9, 2021

This is standard under RERA when buyers seek exit due to violations.

🔎 In Simple Terms

The company:

  • Sold flats it had no authority to sell
  • Sold units in a block not registered with RERA
  • Misled buyers
  • Collected money illegally
  • Ignored earlier RERA restrictions

Because of these repeated violations, TGRERA imposed ₹21.8 lakh in each case (total ~₹43.7 lakh) as penalty.

Ref TOI 6-Feb-26. Pg 6.



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