Hyderabad Pasumamula Villa Project Hit By RERA Action
HYDERABAD: A Telangana real estate regulator has stopped a villa project in Pasumamula from taking fresh bookings and sales after finding that units were marketed without the required registration. The action also includes a refund order and a penalty exceeding ₹1 crore, highlighting the financial and legal risks developers face when projects enter the market without completing mandatory regulatory requirements.
The Telangana Real Estate Regulatory Authority (TG RERA) passed the order on August 20 following a homebuyer’s complaint against DR Estate Construction Pvt. Ltd. The dispute concerned a villa in the Abhi’s Aloha development in Pasumamula, within Ranga Reddy district. According to the case record, the buyer had agreed to purchase a 250-square-yard plot with a proposed 3,600-square-foot villa for about ₹2.14 crore. She stated that ₹79 lakh had already been paid towards the transaction but that construction was not completed within the promised period. The regulator found that the project, promoted as a gated villa community with multiple residential units and shared amenities, fell within the category requiring registration under the Real Estate (Regulation and Development) Act. The authority concluded that the developer had marketed and sold units before obtaining the necessary registration.
The ruling is important for buyers in Hyderabad’s expanding peripheral housing market, where gated communities and villa developments have become increasingly common. RERA registration provides prospective buyers with access to project information, construction details and regulatory oversight. Selling before registration can reduce the visibility buyers have into a project’s legal and development status. TG RERA has directed the developer to return the ₹79 lakh paid by the complainant, along with 10.70% annual interest calculated from February 5, 2024, until the refund is made. The amount must be paid within 40 days of the order. A separate penalty of ₹1.03 crore has been imposed for marketing and selling units in the unregistered project. The regulator has also prohibited the developer from advertising, booking, marketing or selling any unit in the development, directly or indirectly.
The authority also noted the absence of a clearly defined possession date in the sale agreement and a lack of adequate information on construction progress. With the developer failing to appear before the regulator or submit a project status report, the authority proceeded without its response. The order carries a wider message for Telangana’s housing market. As development spreads into emerging suburban corridors, buyers need clearer information before committing substantial sums to under-construction properties. Developers, meanwhile, face increasing scrutiny over registration, disclosures, construction timelines and buyer protection. For the market to grow sustainably, regulatory compliance needs to keep pace with rapid housing expansion. Stronger enforcement can help reduce disputes while giving buyers greater confidence that projects entering the market have met the basic legal requirements.
