RERA Fines Bharathi Builders for Pre-Launch Sales
The authority declared the builder a ‘Defaulter Promoter’ for multiple regulatory violations and directed it to refund the amounts collected from buyers within 60 days.
Hyderabad:Telangana Real Estate Regulatory Authority (TG Rera) has imposed a penalty of `4.74 crore on Bharathi Builders Pvt Ltd for illegally collecting funds for ‘Bharathi Lake View Apartments’ project at Kompally under a pre-launch scheme. The authority declared the builder a ‘Defaulter Promoter’ for multiple regulatory violations and directed it to refund the amounts collected from buyers within 60 days.
Acting on complaints from several aggrieved homebuyers, TG Rera said the promoter had collected substantial sums from purchasers through pre-launch offers in 2021, promising completion of the project within 24 months. However, the promoter failed to honour the commitment.
The authority said funds were collected without obtaining registration under the Real Estate (Regulation and Development) Act and without undertaking any construction activity. It imposed a penalty of `3.556 crore in the present case, in addition to an earlier penalty of `1.18 crore levied in previous proceedings for similar violations, taking the total penalty to `4.74 crore.
TG Rera also said another company, Sree Bharathi Builders, involved in the development of the project, falls within the definition of “Promoter” and that all such entities would be jointly and severally liable to refund the amounts to buyers.
Cautioning homebuyers against unregistered projects, the authority said “pre-launch” offers or schemes in projects not registered under Rera are strictly prohibited under law. It advised prospective buyers to verify the registration status of any real estate project on the official TG Rera portal before entering into any transaction.
