TG RERA Slaps ₹32.17 Lakh Penalty on Janapriya Projects Over Pre-Registration Booking
The Telangana Real Estate Regulatory Authority has imposed a penalty of ₹32,17,780 on Janapriya Projects Pvt. Ltd for collecting a booking advance for its Sitara at Janyapriya Lake Front project before securing mandatory registration. The regulatory authority also ordered the developer to finish all pending works and hand over possession of the flat.
The regulatory action followed a complaint submitted by a couple who had booked an apartment in the housing project. TG RERA discovered that the real estate developer had accepted an advance amount of ₹2,44,608 towards the booking and allotment of the flat through an allotment letter dated March 30, 2019. However, the Sitara at Janyapriya Lake Front project was registered with the authority only months later, on October 5, 2019.
In its order, the regulatory body pointed out that Section 3 (1) of the Real Estate (Regulation and Development) Act, 2016 strictly prohibits promoters from advertising, marketing, booking, selling, or offering any property for sale prior to obtaining registration. The authority observed that the developer had also failed to submit any explanation in response to a show-cause notice issued regarding the pre-registration collection.
TG RERA held that the evidence on record clearly established a contravention of Section 3 (1) of the Act. The authority further ruled that obtaining registration at a later date did not remove or wipe out the initial statutory violation committed by the developer.
Under the directives, Janapriya Projects must remit the ₹32,17,780 penalty into the TGRERA Fund within 30 days of receiving the order. In addition to the financial penalty, the promoter was instructed to complete all pending works inside the flat, including providing fully operational electricity and water connections, and to execute and register the sale deed.
The developer must deliver lawful, ready-to-move-in possession of the apartment to the complainants. TG RERA also awarded the buyers interest at the rate of 10.70 percent per annum on the total amounts paid, calculated from August 21, 2024, until the date of actual handover, which the promoter must disburse within 60 days of the order.
