TGRERA slaps ₹18.51 lakh penalty on Jubilee Hills Cooperative House Building Society

The Telangana Real Estate Regulatory Authority (TGRERA) has imposed hefty penalty on a cooperative housing society for violating the provisions of the Real Estate (Regulation and Development) Act, 2016.

The regulatory body has slapped a fine of ₹18.51 lakh on the Jubilee Hills Cooperative House Building Society for advertising and promoting a real estate project in the name of ‘Jubilee Hills Phase IV’ without mandatory registration and regulatory approvals under the Act.

Said to be coming up at Manchirevula village of Gandipet mandal in Ranga Reddy district, the project was reportedly advertised as ‘Jubilee Hills Phase IV-Premium Highrise at Manchirevula’, on 13.713 acre site, boasting 1,910 dwelling units in 40 floors and multiple towers, with amenities such as two club houses.

The TGRERA found the project to be in violation of the Sections 3 & 4 of the Act, which pertain to mandatory prior registration of real estate projects.

The case was initiated suo-motu based on a complaint made by Jyothi Prasad Kosaraju, a member of the Society, who alleged pre-launch marketing and collection of advance payments from buyers. He also alleged that the Society was demanding mandatory flat purchase for the society membership, and collected a non-refundable deposit of ₹5 lakh from 1,800 prospective buyers, amounting to ₹90 crore.

The Authority, comprising chairperson N. Satyanarayana, and members K. Srinivasa Rao and Laxmi Narayana Jannu, rejected objections raised by the Society that the proceedings were invalid due to a pending writ petition in the Telangana High Court. ​ It clarified that the High Court’s interim stay pertained to society membership issues, while the present case focused on violations of real estate regulations. ​

The TGRERA determined that the Society qualifies as a “promoter” under the Act and had engaged in advertising and marketing without registration, violating Section 3. ​ Apart from imposing the penalty, the Authority has restrained the Society from further promotional activities until the project is duly registered and compliance ensured. ​

The Society has been directed to pay the penalty within 30 days and warned of further penal consequences for non-compliance.