Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has directed a real estate consultancy firm to refund ₹42.2 lakh, along with 10.7% annual interest, to two Hyderabad buyers after finding that it had marketed and collected money for plots in an unregistered real estate project.In its final order dated Aug 17, the authority also found the developer and landowner of the project in violation of Section 3 of the Real Estate (Regulation and Development) Act for permitting sale activity in an unregistered project. The order was passed by members K Srinivasa Rao and Laxmi Narayana Jannu.Buyers paid ₹52.2 lakh for two plotsComplainants V Praveen Krishna and V Manjula Praveen Krishna approached the consultancy firm in May 2022 after seeing advertisements for Sree Rugveda Brundavanam Hills. They agreed to buy plots 229 and 230 and paid ₹52.2 lakh by June 7, 2022.According to the complaint, the firm sought an additional ₹10 lakh the following day, claiming that plot 230 measured 377.7 square yards instead of 277.7 square yards. The buyers then sought cancellation of the booking and a refund, later alleging title- and boundary-related issues.While ₹10 lakh was refunded, cheques issued towards the remaining ₹42.2 lakh were dishonoured.RERA finds violationsTG RERA held that ‘Sai Balaji Venture’ and ‘Sree Rugveda Brundavanam Hills’ used for the same layout referred to the same project. The developer maintained that plots 229 and 230 were never sold to the consultancy firm and that it had neither received money from the complainants nor authorised the firm to act as its agent.The authority held the consultancy firm, a registered RERA agent, responsible for violating Section 10 of the Act by marketing and collecting consideration for plots in an unregistered project. Respondents 6 and 7 were held not personally liable.The firm was ordered to refund ₹42.2 lakh with 10.7% interest from June 7, 2022, within 60 days. TG RERA also directed the parties concerned to initiate project registration, if applicable, and halt further sales, marketing, bookings and advertisements until registration is obtained. The RERA secretary was directed to initiate penalty proceedings under Sections 59 and 62 of the Act against the developer and the consultancy firm, respectively.—–(ORGINAL COPY BELOW)–
