TSRERA Fines Real Estate Developers Lakhs for RERA Rule Violations

HYDERABAD — The Telangana Real Estate Regulatory Authority (TSRERA) has imposed heavy financial penalties on multiple real estate projects in Hyderabad for violating provisions under the Real Estate (Regulation and Development) Act. The enforcement actions were taken after the regulatory body found developers selling properties without obtaining mandatory RERA registration, failing to secure required local planning approvals, and collecting advance funds beyond permitted limits without executing formal sale agreements.

The largest single fine was levied against SVM Aditya Homes for violations associated with its Tech Homes project. TSRERA imposed a penalty of ₹43,16,480 on the project after discovering that the promoter had carried out property sales without securing RERA registration. Furthermore, the authority noted that the project was being promoted and sold without obtaining necessary approvals from the Hyderabad Metropolitan Development Authority (HMDA).

Developer AV Infracon Pvt. Ltd. was penalised for carrying out unregistered sales across two distinct developments. The authority levied a fine of ₹14,84,184 on the developer’s AV's West Heights project for undertaking sales without RERA registration. In a separate order concerning the same developer, TSRERA penalised the AV's East Residency project ₹2,83,140 for conducting property sales without mandatory registration.

In a separate case involving advance buyer payments, TSRERA penalised real estate firm Adhuri Infra ₹6,77,966. The regulatory body penalised the firm for collecting 25 per cent of the overall sale consideration from a buyer without executing a formal sale agreement.

Addressing the violation, TSRERA noted that under the Act, a promoter cannot collect more than 10 per cent of the total cost of an apartment, plot, or building from a buyer without first executing a sale agreement.

Reiterating its compliance mandates, the authority stated that real estate projects must obtain mandatory RERA registration before engaging in any advertising, marketing, or sales activities. Promoters were cautioned not to collect more than 10 per cent of property costs without entering into an Agreement for Sale.