In a firm message to developers operating without proper clearances, the Telangana Real Estate Regulatory Authority (TG RERA) has imposed a hefty penalty of ₹27 lakh on Googee Properties Pvt. Ltd.
The action comes after the developer was found marketing and selling plots in an unregistered venture, an illegal practice that puts homebuyers at significant risk. This decisive move by RERA emphasizes the authority’s commitment to protecting homebuyers and ensuring transparency in the state’s real estate market.
Protecting Homebuyers: A Crucial Step for the Real Estate Sector
This is a critical development for real estate professionals, including lawyers, brokers, and property consultants. It reinforces the importance of due diligence and project registration under the Real Estate (Regulation and Development) Act, 2016.
The case serves as a powerful warning to developers who attempt to bypass legal requirements, and it gives confidence to buyers that there are strong regulatory mechanisms in place to address fraudulent activities.
The Details of the TG RERA Ruling
The ruling was based on complaints from several homebuyers who had booked plots in a project advertised as a “satellite township.” The developer had collected significant advance payments under a “pre-launch offer” without obtaining the necessary layout approvals or RERA registration.
- Illegal Activities: The authority found that the developer lacked the statutory clearances for the project, which was promoted as a large-scale township, but records showed a much smaller landholding.
- Violation of RERA Act: TG RERA highlighted that the developer failed to register the project as mandated by Section 3 of the RERA Act, despite repeated assurances to the buyers.
- Refunds and Penalties: The authority has ordered Googee Properties to not only pay the ₹27 lakh penalty but also refund the amounts collected from the 12 complainants with an annual interest of 10.8% from the booking date. The developer has 30 days to comply.
Impact on Developers and Homebuyers
This penalty sends a clear and strong signal to the real estate community in Telangana. It highlights several key takeaways:
- Mandatory RERA Registration: All real estate projects, including plotted developments, must be registered with RERA before any marketing, advertising, or sales activities begin.
- Transparency is Non-Negotiable: Pre-launch offers on unapproved projects are a major red flag. Buyers should always verify a project’s RERA registration number and status online before making any payments.
- Buyer Protection: The RERA Act provides a robust legal framework for homebuyers to seek recourse against erring developers. The refund with interest demonstrates that the law has teeth.
The Telangana RERA’s action is a positive step towards creating a more regulated, transparent, and trustworthy real estate market. It underscores the importance of a vigilant and proactive regulatory body in safeguarding the interests of all stakeholders, from homebuyers to ethical developers.
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