RERA Registration Owed To Statute, Not Complainant: Telangana RERA Penalises Green Space Properties ₹22Lakh

The Telangana Real Estate Regulatory Authority (TG RERA) has recently imposed a penalty of over Rs 22 lakh on Green Space Properties for advertising and executing sale transactions in its “Green Space Indra Nagar” project without obtaining mandatory registration under the Real Estate (Regulation and Development) Act, 2016.

The authority, comprising Chairman Dr. N. Satyanarayana, IAS, Members K. Srinivasa Rao and Laxmi Narayana Jannu held that the plotted development, spread over 25,900 square yards (21,655.699 sq. meters) and comprising 94 plots in Medak district, far exceeded the statutory exemption thresholds. The project therefore attracted the mandatory requirement of registration under Sections 3 and 4 of the Act.

It found that the firm had advertised and executed registered sale deeds without prior registration.

“The language of Section 3(1) is prohibitory and mandatory. Registration of the real estate project is a condition precedent to any act of advertisement, marketing, booking, sale or offer for sale,” the authority observed.

The complaint was filed by Ch. Venkateswara Rao, a 71-year-old Hyderabad resident. The authority, however, first examined whether he qualified as an “allottee” under the Act.

It found that Rao had entered into a development agreement cum GPA and a memorandum of understanding with the developer, contributing land and financial participation in return for a share in the developed area. His entitlement to plots flowed from this area-sharing arrangement and not from a conventional buyer transaction.

Accordingly, the authority held that he does not fall within the statutory definition of an “allottee” and could not seek allottee-specific reliefs under Section 31 in his personal capacity.

It clarified, however, that the developer's regulatory obligations operate independently of the complainant's status. “The obligation to register a real estate project is owed not to an individual complainant but to the statute itself and to the class of present and prospective homebuyers,” it said.

The authority also referred to earlier proceedings against the same firm concerning another project. In that case, it had recorded violations of the registration mandate and imposed a penalty of Rs 3,37,800 under the Act.

When that order was not complied with, further proceedings were initiated under Section 63. By order dated February 21, 2026, the firm was directed to pay Rs 3 thousand per day of default until compliance, subject to the statutory cap of 5% of the estimated project cost.

Against this background, the Authority said the present violation was not an isolated lapse but reflected a “pattern of deliberate and wilful disregard of statutory mandates and regulatory discipline.”

TG RERA directed the firm to immediately cease and desist from advertising, marketing, booking or selling plots in “Green Space Indra Nagar” unless the project is duly registered. It must apply for registration within 30 days, pay the penalty within 30 days, and file a compliance report within 45 days. Failure to comply will attract further penal consequences under Section 63 of the Act.

For Complainant (Ch. Venkateswara Rao): Party-in-person.

For Respondents (M/s Green Space Properties): Sri Kundeti Ravi Chandra Babu, Managing Partner