Hyderabad RERA Backs Buyer Rights In Payment Dispute
Telangana’s real estate regulator has imposed a ₹6.78 lakh penalty on Adhuri Infra Pvt Ltd after finding that the developer accepted 25% of a homebuyer’s sale consideration without first executing a registered Agreement for Sale. The order reinforces a key protection under India’s real estate law and signals continued regulatory scrutiny of advance payments in property transactions.
The Telangana Real Estate Regulatory Authority (TG RERA) imposed a penalty of ₹6,77,966 in an order dated August 6. The case involved a homebuyer who had paid ₹11.12 lakh, equivalent to 25% of the agreed sale consideration, to the developer. Under Section 13 of the Real Estate (Regulation and Development) Act, 2016, a promoter cannot accept more than 10% of the cost of an apartment, plot or building as an advance or application fee unless a written and registered Agreement for Sale has first been executed. TG RERA had previously examined the buyer’s complaint and determined in March that the developer had accepted the payment before completing the mandatory agreement. The latest order deals specifically with the financial penalty arising from that violation. The regulator treated the requirement as more than a paperwork obligation. A registered agreement establishes the terms of a property transaction and provides buyers with greater clarity over their contractual rights and obligations.
The ruling is particularly relevant in a market where buyers may make substantial payments during the early stages of a transaction. Without the protections required under RERA, consumers can face greater uncertainty over possession, payment schedules, project commitments and other contractual conditions. The case also illustrates the regulatory significance of the 10% threshold. Buyers and developers may both benefit from understanding that the provision is not simply a recommended practice. It creates a statutory limit on the amount a promoter can collect before the required agreement is in place. TG RERA has directed Adhuri Infra to deposit the penalty into the TG RERA Fund within 30 days of receiving the order. Payment can be made through a demand draft or online transfer using the details specified by the authority.
The regulator has also warned that failure to comply could result in additional action under Section 63 of the RERA Act. For Telangana’s housing market, enforcement of such provisions can help strengthen transaction transparency. Clear documentation before significant payments are collected can reduce disputes and give buyers a better understanding of what they are committing to. The order also places responsibility on developers to build compliance into the sales process from the outset. For homebuyers, it underlines the importance of checking registration and contractual documentation before making substantial advance payments. As Telangana’s residential market expands, consistent enforcement of buyer-protection provisions will remain important for maintaining confidence and accountability across the sector.
