The Telangana Real Estate Regulatory Authority (TG RERA) held Janapriya Projects Pvt. Ltd liable for collecting an advance amount for its ‘Sitara at Janyapriya Lake Front’ project before obtaining mandatory RERA registration, and imposed a penalty of `32 lakh on the developer.
Following a complaint filed by a couple who had booked a flat in the project, RERA found that the developer had received `2,44,608 towards booking and allotment of the apartment through an allotment letter dated March 30, 2019, while the project was registered with TG RERA only on October 5, 2019. The authority noted that Section 3 (1) of the Real Estate (Regulation and Development) Act, 2016 prohibits a promoter from advertising, marketing, booking, selling or offering a property for sale without first obtaining registration.
RERA said the developer had failed to provide an explanation to the show-cause notice issued over the pre-registration collection. It held that the material on record established a contravention of Section 3 (1) and that the subsequent registration did not remove the earlier violation. RERA directed the developer to pay the `32,17,780 penalty to the TGRERA Fund within 30 days of receiving the order.
The authority directed Janapriya Projects to complete pending works in the flat, including operational water and electricity connections, and hand over lawful, ready-to-move-in possession. It also directed the developer to execute and register the sale deed. The complainants were awarded interest at 10.70 per annum on the amounts paid, calculated from August 21, 2024, until the actual handover of possession, which must be paid within 60 days of receiving the order.
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