The Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a penalty of ₹4.74 crore on Bharathi Builders Pvt Ltd for collecting funds from buyers through pre-launch offers without registering the project under the Real Estate (Regulation and Development) Act.
The penalty relates to the “Bharathi Lake View Apartments” project in Kompally, Hyderabad, where the developer reportedly collected payments from homebuyers despite not obtaining the mandatory RERA registration required for real estate projects.
The authority also declared the company a “Defaulter Promoter” for multiple regulatory violations and directed the developer to refund the amounts collected from buyers within 60 days.
Background of the Case
According to TG-RERA, the developer had launched a pre-sale scheme in 2021, promising buyers that the project would be completed within 24 months. However, authorities found that the developer had neither secured project registration nor initiated construction work while collecting funds from purchasers.
The regulator stated that pre-launch sales in projects not registered under RERA violate the provisions of the law, which is designed to ensure transparency and accountability in the real estate sector.
Key Regulatory Actions
The authority issued several directions while delivering its order.
Major actions include:
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Imposition of ₹3.556 crore penalty in the current case, following strict RERA compliance guidelines.
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An earlier penalty of ₹1.18 crore imposed in related proceedings
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Total penalty amount reaching ₹4.74 crore
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Direction to refund amounts collected from buyers within 60 days
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Declaration of the developer as a “Defaulter Promoter”
The regulator also stated that associated entities involved in the development would be jointly liable for refunding buyers.
Case Overview
| Parameter | Details |
|---|---|
| Regulatory Authority | Telangana RERA |
| Developer | Bharathi Builders Pvt Ltd |
| Project | Bharathi Lake View Apartments |
| Location | Kompally, Hyderabad |
| Total Penalty | ₹4.74 crore |
| Violation | Pre-launch sales without RERA registration |
Impact on Homebuyers and the Real Estate Sector
Regulatory actions against unregistered projects highlight the importance of compliance with real estate laws. RERA regulations require developers to register projects before marketing or selling units, ensuring transparency and protection for buyers.
Potential implications include:
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Increased awareness among homebuyers about RERA registration
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Greater regulatory oversight of project marketing practices
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Improved compliance by developers with statutory requirements
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Strengthening of buyer protection mechanisms
Authorities also advised homebuyers to verify the RERA registration status of projects on the official portal before making any investment or booking decision.
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