Medak: Builder penalised Rs 22 L for marketing unregistered project

Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has ordered an immediate halt to the sale and advertisement of flats in a proposed housing project in Medak district after finding that the developer had not obtained mandatory registration under the Real Estate (Regulation and Development) Act.

Complaint filed by Hyderabad resident

The action follows a complaint filed by Hyderabad resident CH Venkateswara Rao, who informed the authority that he had purchased a flat on November 17, 2023, in the proposed “GreenSpace Indranagar” project located at Aurangabad village in Haveli Chandapur mandal of Medak district.

He alleged that despite the purchase, construction work at the site had not commenced.

Sales conducted without prior registration from authority

Upon receiving the complaint, RERA conducted an inquiry into the matter. During the proceedings, it was found that GreenSpace Properties, represented by managing partners U Mahesh Kumar and Kundeti Ravi Chandrababu, had been marketing and selling flats in the project without securing prior registration from the regulatory authority, as required under the Act.

RERA imposes penalty

Taking serious note of the violation, RERA directed the developer to immediately stop all sales and promotional activities related to the project until proper registration is obtained. The authority also imposed a penalty of Rs 22,05,468 for carrying out sales without registration.

RERA has instructed the firm to deposit the penalty amount into the RERA Fund within 30 days from the date of issuance of the order.

It further made clear that compliance with registration norms is mandatory before any real estate project can be marketed or sold.