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Telangana RERA declares developer a defaulter for marketing an unregistered project, orders refund with 11% interest
Telangana RERA declares BhuvanTeza Infra Projects a defaulter, orders refunds to buyers with 11% interest in 90 days and fines the developer ₹6.45 lakh
The Telangana Real Estate Regulatory Authority (TG RERA) has slapped a fine of ₹6.45 lakh on Hyderabad-based developer BhuvanTeza Infra Projects for advertising and selling units in an unregistered residential project in Secunderabad.
"The secretary, TG RERA, is directed to ensure the name of the developer shall be included in the list of defaulters declared by the authority, and the same, along with the photographs of the developer, shall be prominently displayed on the official website of TG RERA for public notice and awareness," the order said.
In this case, the authority passed the order for the Happy Homes, Phase 1 project in Shameerpet. TG RERA also barred the developer from carrying out any further real estate activities until it clears dues and complies with all legal obligations.
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The case
According to the order dated July 14, 2025, multiple complaints were filed by individual buyers who had invested in the project between 2020 and 2023.
"Customers were assured that the project would be developed on legally acquired land, and that registration of flats along with undivided shares would follow upon payment of the booking amount and execution of formal agreements. The buyers were also assured a monthly rent of ₹10 per square foot until possession," the order said.
Acting upon such representations, the buyers made substantial payments, directly into the accounts of the company and some of them through the company’s marketing representatives, it said. At least four buyers paid over ₹1.1 crore to the developer in total, the order showed.
Despite repeated follow-ups by the buyers over months and even years, there was no real progress at the site. Construction remained stalled, and the promised approvals were never provided, the buyers claimed.
Despite repeated representations, both oral and written, the developer failed to uphold their contractual and legal obligations. To date, the Happy Homes-1 project remains unregistered under RERA, and construction at the site is stalled, non-existent, the order said.
A list of questions has been sent to the developer. The story will be updated once a response is received.
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TG RERA finding
The authority noted that Section 3(1) of the RERA Act, 2016 categorically prohibits any promoter from advertising, marketing, booking, or selling units in a real estate project without prior registration of such project with the Real Estate Regulatory Authority.
"Despite collecting funds and committing timelines for completion and possession, no registration was obtained for the said project under Section 3, nor has any application for registration been produced before this authority," it said.
TG RERA noted that saying that approvals were pending or the project was in a pre-launch stage does not excuse the promoter from the legal duty to register the project before any booking or marketing. The order said this kind of ongoing violation goes against the main purpose of the law, which is to ensure transparency, accountability, and protection of homebuyers in real estate deals.
"The developer executed non-registered agreements of sale and registered undivided shares in land as an interim measure, yet no lawful progress or possession has followed. The Respondent has also failed to honour promises of rental payments, development agreements, and written undertakings for refund," TG RERA said.
The order said that the authority has also taken serious note of the repeated and ongoing violations by Bhuvanteza Infra Projects, not just in this case, but also in several other projects where it has been involved directly or indirectly through its related companies, directors, or agents.
"Accordingly, the developer hereby declared to be a 'defaulter' both in its capacity as a 'promoter' and as an 'agent' within the RERA Act, 2016. As a consequence, the developer shall be prohibited from undertaking, advertising, marketing, booking, selling, or registering any new real estate project or acting as a real estate agent within the jurisdiction of this authority until all existing dues, refunds, interest, penalties, and regulatory compliances are fully discharged," the order said.
In addition to a ₹6.45 lakh penalty to the authority, it also ordered Bhuvanteza Infra Projects to refund the money paid by all buyers based on the amounts mentioned in their agreements at 11% annual interest within 90 days of the order.
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Legal experts advise buyers to exercise due diligence before investing
Akash Bantia, an advocate, highlighted several key precautions that every homebuyer must take, whether it's a new launch or an ongoing project. First and foremost, buyers should verify if the project is RERA-registered. “This is non-negotiable, as only RERA-registered projects are legally bound to offer transparency and adhere to delivery timelines. The homebuyer should also visit theproject site in person to assess construction progress. Real-time project data, including quarterly construction updates and financial disclosures, is available on the RERA portal and should be checked thoroughly.”
Bantia also warned buyers to never rely solely on the developer’s lawyer. Instead, have all title deeds, sale agreements, and land approvals vetted by an independent legal expert to avoid hidden liabilities. Importantly, any payment made, including the booking amount, must be deposited into the project's escrow account. "Buyers should verify this directly, as RERA regulations mandate that 70% of the collected amount remain in escrow, with only 30% disbursable to the developer upon phase-wise completion," he said.
