Telangana RERA Holds Two Real Estate Agents Liable For Facilitating Sale Of Plot In Unregistered Project

The Telangana Real Estate Regulatory Authority (TG RERA) has held two registered real estate agents liable for facilitating the sale of a plot in the unregistered “Amber Homes” project at Mucherla village in Ranga Reddy district.

It also found that one of the agents, Madhirala Rosi Reddy, misrepresented himself as a "vendor/developer" without establishing any authority to do so.

A coram of Member Laxmi Narayana Jannu and Member K. Srinivasa Rao observed: “Respondent No. 2, being a registered real estate agent under Registration Nos. A02500001226 and A02500003146, nevertheless executed the Agreement of Sale dated 23.10.2024 in respect of the subject plot and thereby facilitated the sale of a plot in an unregistered real estate project.”

The dispute arose from J. Ravi Kishore's proposed purchase of 1,000 square yards in Plot No. 135 of Amber Homes for ₹1.15 crore. According to his complaint, he paid ₹1.1761 crore towards the transaction, including registration expenses.

Two sale deeds covering 500 square yards were registered in his favour on February 23, 2024, while registration of the remaining 500 square yards was delayed.

After repeated demands, an agreement of sale dated October 23, 2024, was executed through Lavoura Developers Private Limited for the remaining 500 square yards. Rosi Reddy represented Lavoura Developers as the Vendor/Developer and agreed to complete registration by March 31, 2025.

Rosi Reddy was registered as a real estate agent through Fortune 99 Homes and Lavoura Developers. RERA found no material showing that Designated Partner Rakshit Agrawal of SKA Realtors LLP had authorised him through a registered power of attorney or another legally recognisable instrument to execute the agreement as Vendor/Developer. The Authority also found that Rosi Reddy had not disclosed his registered-agent status.

Relying on its earlier decision concerning Amber Homes, TG RERA held that Rosi Reddy's conduct amounted to misrepresentation and unfair conduct, in addition to facilitating the sale in an unregistered project.

The Authority also held Paladugu Durga Devi, acting through Talking Bricks Infra Private Limited, liable for facilitating the transaction. Bank statements showed that substantial amounts connected with the transaction had been received through Talking Bricks.

The authority had earlier held that Amber Homes was a real estate project requiring registration. In the present case, it found that documents including the HMDA Layout Permit dated August 4, 2023 showed that the project was being developed and marketed through the sale of plots. It consequently held SKA Realtors LLP liable for marketing, selling and executing sale transactions without prior registration.

During the proceedings, SKA Realtors executed two further sale deeds on May 28, 2025, each covering 250 square yards. This completed the registration of the entire 1,000 square yards in Kishore's favour.

The Authority therefore found that Kishore's principal relief had been satisfied. It declined to order a refund of ₹1 lakh paid to Rosi Reddy because the record did not establish whether the amount was towards facilitation charges or the value of the plots. It left Kishore free to pursue an appropriate remedy before the competent forum.

The RERA directed its secretary to initiate steps for imposing penalties against both agents under Section 62. Rosi Reddy was additionally declared a defaulter for misrepresentation and unfair conduct.

The Authority also directed SKA Realtors to cease advertising, marketing, booking, selling, offering plots for sale or inviting persons to purchase plots in Amber Homes until the project is duly registered with TG RERA.

For Respondent (Rakshit Agrawal/SKA Realtors LLP): Advocate Jella Vishnupriya.

For Respondent (Paladugu Durga Devi): Advocates A. Venkata Ramana and P. Vijaya Saradhi.