Telangana RERA levies Rs.9.96 lakh penalty on builder for violation of rules

The Telangana Real Estate Regulatory Authority (TGRERA) has slapped a penalty of Rs.9.96 lakh on Krithika Infra Developers Private Limited for violation of different rules, including failure to apply for RERA registration, executing sale of agreement before registration and delay in completing the flat construction as per the promised deadline.

In a case filed by complainant Katchala Nanaji against Krithika Infra Developers Private Limited, the TG RERA passed these orders on December 31, 2024.

Katchala Nanaji had entered into an agreement with the company in October 2021 for purchasing a flat at Beeramguda. It was for a 1594 sq flat in the fifth floor of Block A with an undivided share of 35.4 sq yards and one car parking at Sheshadri’s Silver Oak, Boduppal.

Towards this an advance payment of Rs.2,500 per square foot was made to the company with an additional amount of Rs.33,84,200. However, the company failed to hand over the flat to Katchala Nanaji as per the promised deadline of March 2024.

Katchala Nanaji approached TGRERA complaining that the company had not initiated the necessary construction work, failed to secure requisite approvals, including RERA registration and



loan clearances.

He also complained that despite multiple meetings and follow-ups with the company representatives, there was no concrete response over completion of the flat as per the deadline.

As the company failed to deliver the flat as per the promise, Katchala Nanaji sought to cancel the booking and requested repayment of funds paid by him. But the company failed to initiate the refund process.

When the case came up for hearing, the TGRERA noticed that the project lacked RERA registration but an agreement of sale was executed on February 5, 2022. A showcause notice was also served on the company for failing to apply for RERA registration but the management failed to reply.

Further, the company was absent for the last date of hearing despite knowing that the matter was to be finally heard.

Considering all the factors, the TGRERA levied a penalty of Rs.9.96 lakh on the company to be payable within 30 days to TGRERA. It also directed the company to refund the entire amount of Rs.33,84,200 to Nanaji with an interest of 11.05 percent per annum from the date of agreement of sale, within 30 days.