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Telangana real estate appellate tribunal says builders cannot alter sale agreements after obtaining project registration
Telangana Real Estate Appellate Tribunal has ruled that modifying the approved agreement format or executing materially different sale agreements violates rules
The Telangana Real Estate Appellate Tribunal (TREAT) has ruled that developers cannot alter key terms in sale agreements after obtaining project registration under Telangana RERA. The tribunal upheld a penalty of over ₹11 lakh imposed by TRERA on a developer for executing buyer agreements that differed from the standard format submitted to the regulator during registration.
The tribunal observed that changing the approved agreement format and executing a substantially different sale agreement was impermissible under the rules. It held that the developer violated Rule 38, furnished false information and engaged in “deliberate suppression of material facts.”
The tribunal found that the regulatory authority (TRERA) was justified in imposing a penalty under Section 60 of the RERA Act for failing to comply with the prescribed agreement format.
It also upheld directions restraining the developer from charging GST on interest levied for delayed payments, dissolving the existing Greenwood Welfare Association, and requiring completion of all pending works before handing over physical possession to homebuyers.
The order stemmed from a dispute involving a flat buyer in the Greenwood Heights residential project in Kowkur village of Medchal-Malkajgiri district. The tribunal upheld the earlier ruling of the Telangana RERA Regulatory Authority and dismissed the developer’s appeal.
The case
According to the complaint, the buyers had booked the flat in the Greenwood Heights project in October 2019 for ₹62.33 lakh and later entered into a sale agreement with the developer on November 11, 2019. A registered sale deed was eventually executed in April 2024.
The complainants alleged that when they sought possession of the flat, the developer insisted they join a Greenwood Welfare Association and pay maintenance charges retrospectively from March 2023 to March 2024, despite the project not having received an occupancy certificate at the time.
“It is stated that the appellant has intimated the complainants that they would be issued a post-dated letter of possession for which they are required to sign on a letter of confirmation, which contains a clause asking complainants to confirm that the said flat has been duly inspected by them and is completed in all respects,” the order said.
“The appellant has collected ₹31,000/- towards Manjeera Water charges from the complainants, which is an unfair trade practice and needs to be refunded as the provision of amenities relating to water facilities is the basic requirement of any project,” the buyers told the tribunal.
The buyers also objected to the levy of 18% interest on delayed instalments from March 2023 to March 2024, including interest calculations on GST and TDS amounts, saying that no occupancy certificate had been obtained and physical possession had not been handed over.
The developer argued that there were only minor variations in the executed agreement and maintained that under the contractual terms, maintenance charges became payable from the date possession was intimated or the flat was completed.
"On the other hand, learned Counsel for the appellant/promoter contended that the agreement for sale executed in the present case contains all statutory safeguards and does not dilute any of the rights of the allottees under the Act and that the minor variations in the format neither prejudice the complainants nor result in any substantive non-compliance with the Act or Rules," the developer told the tribunal.
The order
In its order, the tribunal observed that the agreement for sale executed with the buyers was ‘completely different’ from the draft agreement format submitted to RERA and prescribed under Rule 38 of the Telangana RERA Rules.
“A plain reading of the recitals of the agreement of sale, dated 11.11.2019, and also the draft agreement of sale submitted to RERA at the time of registration, would disclose that the appellant/promoter has uploaded the same draft agreement of sale on the website as that of the Annexure to Rule 38 of the Rules, but has executed a completely different agreement of sale, dated 11.11.2019, in favour of the complainants, which is impermissible,” the tribunal said in its order.
In its June 23, 2025 order, the Telangana RERA imposed a penalty of ₹11.00 lakh ( ₹10,99,992) under Section 60 of the Real Estate (Regulation and Development) Act, 2016, holding that the developer had furnished false information and executed an agreement different from the one uploaded before the authority.
On maintenance charges, the tribunal ruled that buyers cannot be compelled to pay such charges before the project receives an occupancy certificate and possession is formally handed over.
The tribunal further held that the developer’s practice of collecting no-objection certificates and possession-related documents before actual physical handover of flats was impermissible. The tribunal ordered the dissolution of the existing Greenwood Welfare Association and directed the promoter to form a fresh association in line with the provisions of the Telangana Cooperative Societies Act and the applicable RERA rules.
Dismissing the appeal, the tribunal concluded that the Telangana RERA Authority’s earlier order was “legally sound and based on a comprehensive appreciation of facts and law.”
A list of questions has been sent to the developer. The story will be updated if a response is received.
