Speedy Summary
- The Telangana Real Estate Regulatory Authority (TGRERA) has fined Jubilee Hills Cooperative House Building Society ₹18.51 lakh for violating provisions of the Real estate (Regulation and Development) Act, 2016.
- The Society advertised and promoted a project named ‘Jubilee Hills Phase IV-Premium Highrise at Manchirevula’ without mandatory registration under Sections 3 & 4 of the Act.
- The project, located in Manchirevula village, Gandipet mandal, Ranga Reddy district, included plans for 1,910 dwelling units across multiple towers with amenities like clubhouses on a 13.713-acre site.
- A complaint was filed by Jyothi Prasad Kosaraju alleging pre-launch marketing practices such as advance payment collection from buyers and mandatory flat purchases tied to society membership; ₹90 crore was reportedly collected as non-refundable deposits from prospective buyers.
- Objections regarding a linked writ petition in the Telangana High Court where rejected by TGRERA since they pertained to membership issues rather than real estate regulatory violations.
- TGRERA declared that the Society qualifies as a “promoter” under the Act and imposed penalties while restraining further promotional activities until proper registration is completed.
- The penalty must be paid within 30 days or additional penalties will ensue for non-compliance.
indian Opinion Analysis
This enforcement action underscores the significance of regulatory compliance within India’s rapidly growing real estate sector, notably under statutes like RERA aimed at protecting consumer rights and ensuring clarity in property transactions. Cases such as these highlight vulnerabilities where cooperative housing societies or developers bypass legal obligations through aggressive pre-launch marketing tactics that compromise buyer protection mechanisms.
the substantial fine imposed signals an intent by authorities to curb unregulated practices while reinforcing accountability among promoters operating large-scale projects without adhering to requisite procedures like project registration and disclosure norms mandated by law. Moreover, clarifying jurisdictional overlaps between courts and regulators ensures procedural integrity when addressing multifaceted disputes.
For prospective homebuyers in India, this case represents potential risks involved with investing in pre-launch schemes without guarantees on regulatory compliance or legality of advertising claims-a lesson underscoring due diligence importance before financial commitments are made toward such ventures.
Read More: Published – September 09, 2025