Two Hyderabad property buyers have secured relief from the Telangana Real Estate Regulatory Authority (TG RERA), which has ordered a refund of ₹42.2 lakh with 10.7% annual interest after finding violations linked to the marketing of plots in an unregistered project. The ruling highlights the regulatory risks for developers, agents and buyers when property projects enter the market without completing mandatory registration requirements.
The buyers had approached a real estate consultancy in 2022 after seeing advertisements for a plotted development. They subsequently booked two plots and paid a combined ₹52.2 lakh by June 7 that year.A dispute emerged soon after the transaction when the consultancy sought an additional payment, citing a difference in the stated area of one of the plots. The buyers then sought cancellation and a refund, while also raising concerns regarding the property’s title and boundaries. Although ₹10 lakh was subsequently returned, cheques covering the remaining ₹42.2 lakh were dishonoured. The buyers then approached TG RERA seeking regulatory intervention and recovery of their money. In its August 17 order, the authority examined the role of the consultancy, developer and landowner. TG RERA concluded that the layout being marketed under different names represented the same real estate project and that the consultancy had marketed and collected consideration for plots without the project being registered.
The authority held the consultancy, which was a registered RERA agent, responsible for violating provisions governing the activities of real estate agents. It also found the developer and landowner had permitted sale-related activity involving an unregistered project. The consultancy has been directed to return ₹42.2 lakh along with 10.7% interest calculated from June 7, 2022. The amount is to be paid within 60 days. TG RERA has also directed the concerned parties to pursue project registration where applicable. Until the required registration is obtained, further sales, bookings, marketing and advertisements relating to the project have been ordered to stop. The regulator has additionally directed its secretary to initiate penalty proceedings under the relevant provisions of the Real Estate (Regulation and Development) Act against the developer and the consultancy.
The case carries wider significance for Telangana’s plotted development market, where buyers can face difficulty assessing the regulatory status of projects before making substantial payments. RERA registration provides an important layer of transparency around project details and the parties involved. For buyers, the order reinforces the importance of checking a project’s registration status before making payments or signing booking agreements. For developers and agents, it underlines that marketing and collecting money for an unregistered project can create significant financial and regulatory exposure. As Hyderabad’s real estate market continues to expand into peripheral areas, stronger compliance and accessible project information will remain important for protecting buyers and maintaining confidence in the property market.
