RERA orders penalty proceedings over sale of 40 plots without registration

Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) has ordered initiation of penalty proceedings against Sivom Projects, its managing director and a landowners’ power of attorney holder for selling 40 plots in the Sivom Sahasra II venture at Jeedimetla without mandatory RERA registration. The authority, however, declined to direct completion of the project, leaving buyers who have waited over six years for development works without immediate relief.In its Oct 14 order, RERA found that 40 of the 45 plots in the venture, spread over 18,755.25 square yards in Medchal-Malkajgiri district, were sold and registered during 2021 and 2022 despite the project remaining unregistered. The complaint was filed by Kambalipati Haribabu, representing Sivom Social Welfare Association, alleging that incomplete roads, drains and other infrastructure prevented plot owners from constructing houses. Buyers also alleged encroachment, damage to boundary markers and threats restricting access to their plots.RERA held Sivom Projects, managing director Isukapatla Sambamurthy and authorised GPA holder VSN Raju jointly liable for violating Sections 3 and 4 of the RERA Act. It directed its secretary to initiate proceedings for imposing penalties under Section 59.The authority, however, did not hold landowners Penmatsa Bosu Raju, Penmatsa Venkataramana Raju and P Rangaraju specifically liable for non-registration, noting that statutory approvals and marketing responsibilities had been entrusted to others. The landowners disputed the developer’s authority to sell plots, citing limited powers granted under the development arrangement and pending ownership disputes.RERA declined to order completion of development works because the Telangana high court’s status quo order concerning the tentative GHMC layout approval remains in force. A civil partition suit and GHMC proceedings reviewing the layout approval are also pending. It also rejected the buyers’ request to undertake development themselves by selling five plots mortgaged to GHMC. The authority said allegations of encroachment and threats should be taken to the police or civil court. Buyers can approach RERA again after the pending proceedings are decided.You Can Also Check: Gold Rate in Hyderabad | Silver Rate in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Hyderabad AQI | Weather in Hyderabad | Petrol Price in Hyderabad | Diesel Price in Hyderabad | CNG Price in Hyderabad | LPG Price in HyderabadStay updated with the latest Hyderabad news. Download the TOI App.