TG RERA warns developer over mortgage allotments

Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) reaffirmed that all projects without an Occupancy Certificate or Completion Certificate at the time of the RERA Act, 2016, commencement fall under its jurisdiction as ongoing projects.

The Authority clarified that this rule applies regardless of when builders obtained permissions. Therefore, developers cannot claim exemption based on earlier approvals.

While hearing Complaint No. 287/2024 filed by Sangeeta Singh, TG RERA issued a strong warning to M/s Provident Housing Ltd. The Authority stated that allotting flats under mortgage violates established norms.

TG RERA flags violations under Sections 13 and 18

TG RERA observed that collecting more than 10 per cent of a flat’s cost without a registered Agreement for Sale breaches Section 13 of the Act. Moreover, it clarified that the interest under Section 18 for delay applies only if a registered agreement mentions a specific possession date.

The Authority did not impose a monetary penalty in this case. It cited earlier legal ambiguities and subsequent rule amendments dated March 4, 2025. However, they issued a stern warning against future violations.

The Authority disposed of the complaint after the developer executed the sale deed and handed over possession during the proceedings.