Telangana RERA Fines Indo Qatar Projects ₹38.63 Lakh For Marketing Unregistered Projects

The Telangana Real Estate Regulatory Authority (TG RERA) has directed Indo Qatar Projects Pvt. Ltd. to pay a consolidated penalty of ₹38.63 lakh. The authority found that the company advertised and marketed multiple unregistered real estate projects. It also facilitated the sale of one project without obtaining registration as a real estate agent.

A coram of Members Laxmi Narayana Jannu and K. Srinivasa Rao observed that registration is a mandatory pre-condition before a promoter undertakes any commercial or promotional activity relating to a real estate project.

It observed, "The legislative mandate is explicit, no promoter is authorised to advertise, promote, solicit bookings, sell, or offer for sale any plot, apartment, or building within a real estate project, or any portion thereof, situated in a designated planning area, unless the project has been registered with the RE(R&D) Act, 2016. Section 3 of the RE(R&D) Act, 2016, imposes a non-derogable obligation on promoters, making registration a precondition for carrying out any commercial transactions or promotional activities in respect of a project."

The proceedings began after Khammam resident N. Ramu alleged that the company was advertising and selling plots without registering the project. Following a review of brochures and advertisements on the company's website, TG RERA issued a show-cause notice.

The company maintained that several projects already had valid RERA registrations. It also claimed that some projects belonged to third parties, while others had commenced before the RERA regime came into force.

The authority accepted the explanation for projects with valid registrations and found no material linking the company to the Indrasena Project. It, however, held that the company marketed the Pranamam Project before obtaining registration as a real estate agent.

It also found that the company advertised and marketed the unregistered Indraprastha, Rajahamsa, Vaikunthapuram, Dharani, Janmabhoomi, Manoharam, Hastina, and Dhruva projects.

The authority imposed ₹30.66 lakh for the unregistered projects and ₹7.97 lakh for the real estate agent violation. It directed the company to deposit the penalty within 30 days, remove advertisements for unregistered projects within seven days, and submit a compliance report within 10 days.