Telangana: RERA Penalises Sensation Infracon For Unregistered Project

Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) imposed a penalty of ₹1.44 crore on Sensation Infracon Private Limited for accepting money from a homebuyer and undertaking booking and allotment activities before obtaining mandatory registration for its Hyderabad One project at Nanakramguda, in violation of the Real Estate (Regulation and Development) Act.

The proceedings arose while RERA was hearing a complaint filed by a homebuyer, who alleged that she had paid substantial amounts towards a flat in the project. The authority found documents showing that the developer had issued a pre-launch investment offer on March 25, 2021, and accepted payments totalling ₹28.90 lakh between March and October, despite the Hyderabad One project being registered with RERA only on December 3, 2021.

The developer argued that the transaction was a financial investment carrying an annual return of 15 per cent and not a sale of a flat. They also claimed that the documents were intended only to provide security to the investor and that it had later agreed to refund the money with interest.

RERA rejected this explanation after examining the pre-launch offer, the MoUs and payment records. The authority noted that the documents clearly identified a 397-square foot unit on the 17th floor, specified the sale price, acknowledged receipt of payments and promised to execute a sale agreement and sale deed after obtaining statutory approvals.

The authority observed that the unit was eventually registered in the complainant's name, which contradicted the developer's claim that the arrangement was merely an investment. It held that the substance of the transaction, rather than the wording used by the parties, determined its legal nature.

Calling the violation a serious breach of the law, RERA said registration under the Act is a mandatory requirement before any developer can advertise, market, book or sell units in a project. It directed Sensation Infracon to pay the penalty of ₹1,43,92,932 within 30 days and warned that any future violations or non-compliance would invite further action under the Act.