Telangana RERA Steps Up Enforcement on Delays, Misleading Ads, and Unregistered Projects in the recent times

The Telangana Real Estate Regulatory Authority (TG RERA) has intensified its oversight of the real estate sector, cracking down on violations of the Real Estate (Regulation and Development) Act, 2016. Recent enforcement actions signal a firm approach against developers engaging in irregular practices such as project delays, false advertising, and failure to register ongoing developments.

Key Violations and Regulatory Action:

1. Advertising Without Registration

Developers have been penalized for promoting real estate projects without obtaining mandatory registration under Section 3(1) of the RERA Act. TG RERA has invoked Section 59 to impose financial penalties on promoters who advertised and marketed their projects through websites, digital platforms, and on-site boards before receiving approval. Even limited mentions such as “Coming Soon” or project teasers were deemed to violate the law, as Section 2(b) defines any public communication as advertisement — regardless of whether pricing or location is disclosed.

2. Delays in Project Delivery

In one recent case, developers were fined huge amounts for prolonged delays in delivering housing units. The authority not only imposed a monetary penalty but also directed the builder to complete the pending construction within 30 days and compensate the buyer for the inordinate delay, reinforcing RERA’s mandate to safeguard buyer interests.

3. Non-Delivery of Promised Plots

Another developer was ordered to either register an unencumbered plot or refund the buyer’s investment with interest, after failing to deliver as promised. The refund amount along with 11% annual interest, was directed as per the Act’s compensation and refund provisions, highlighting the authority’s commitment to ensuring that buyers are not left at a loss due to developer negligence.

Legal Framework relied on:

1. Section 3(1): Prohibits marketing or sale of any real estate project without registration.
2. Section 59: Empowers RERA to penalize promoters for advertising unregistered projects.
3. Section 2(b): Broadly defines “advertisement” to include any public representation of a project.

Applicable Telangana RERA Rules, 2017: such as

1. Rule 3(1): Requires that every promoter must submit an application for registration in the prescribed format before marketing or advertising a project.
2. Rule 4(1): Lists the documents and disclosures that must accompany a registration application, including title deed, sanctioned plan, and development agreement, ensuring transparency and legitimacy of the project.
3. Rule 9: Outlines the procedure for withdrawal of registration or modification, further emphasizing that unregistered projects cannot proceed or be promoted under any circumstances.

Conclusion: Strengthening Accountability in Real Estate

These recent directives from TG RERA mark a strong and proactive stance against non-compliance in the real estate sector. Whether it’s premature promotions, delivery delays, or failure to honor contractual commitments, the authority is acting decisively to enforce the law. Developers are urged to:

1. Register projects before any form of public promotion or booking.
2. Adhere to promised timelines and update buyers on progress transparently.
3. Ensure clear title and approvals are in place before entering agreements with buyers.