Telangana RERA Imposes ₹4.2 Lakh Fine on Hyderabad Developer for Unregistered Promotion of Sanali Pinnacle Project

In the bustling city of Hyderabad, nestled within the residential and commercial landscape of Shaikpet, a development project was quietly underway — or so it seemed. The project, named Sanali Pinnacle, promised an ambitious mix of luxury apartments and commercial spaces. However, the story behind its promotion would soon unfold in a dramatic turn that would capture the attention of regulators and the real estate community alike.

Sanali Housing Projects Pvt Ltd, the developer behind this project, found itself at the center of a legal storm. The Telangana Real Estate Regulatory Authority (TG RERA), empowered by the Real Estate (Regulation and Development) Act 2016, uncovered a serious breach of regulations. Despite the project's potential, the developer had proceeded with marketing and advertising activities without fulfilling essential legal obligations.

The Violation: Advertising Without Registration

In a ruling that reverberated across the state’s real estate sector, TG RERA imposed a penalty of ₹4.2 lakh on Sanali Housing. The developer had not registered the Sanali Pinnacle project under the TGRERA, violating the critical provisions of the RERA Act. The fine, totaling ₹4,27,013, was specifically levied under Section 59 of the Act, which addresses such violations. The penalty serves as a stern reminder to developers about the importance of adhering to legal requirements before any promotional activity.

As part of the order, the authority also mandated that the developer immediately register the project under Section 3 of the RERA Act. Until this registration is secured, Sanali Housing is prohibited from advertising, marketing, selling, or even booking any units in the Sanali Pinnacle development.

The Project and Its Promises

The Sanali Pinnacle project, located in Shaikpet, was touted as a luxurious, mixed-use development with both residential and commercial offerings. With a commitment to quality and sophistication, the project aimed to cater to the city's growing demand for premium real estate. However, things took an unexpected turn when complaints were filed by landowners who had entered into agreements with the developer back in March 2021.

The agreement, which clearly stipulated that construction would only commence after obtaining all necessary approvals from the Greater Hyderabad Municipal Corporation (GHMC), was disregarded by the developer. Despite the passage of three years, the required approvals remained elusive, and the developer had not provided any updates on the project's progress.

Advertising Without the Green Light

While awaiting approvals, the developer made an audacious move — they began advertising the project. The Sanali Pinnacle was showcased across multiple platforms, including Google, real estate websites, and the developer's official site, with bold claims of having secured all necessary approvals. Additionally, boards were put up at the construction site, boasting the project's imminent launch with phrases like "Sanali Coming Soon...".

Such actions were flagged by the TG RERA, which emphasized that under the Real Estate (Regulation and Development) Act, no project can be marketed or advertised unless it is officially registered with the regulatory authority. The advertising material published by the developer, presenting the project as an ongoing venture, was therefore considered a violation of this rule.

Defending the Indefensible

In its defense, Sanali Housing contended that the publication of the project name on its website didn’t qualify as an advertisement. According to the developer, no details such as location, area, or pricing were included, so the content shouldn’t be considered as a promotional material.

However, TG RERA dismissed this argument, referencing Section 2(b) of the RERA Act, which defines any public communication about a real estate project as an advertisement, even if no details like pricing or area are included. The developer’s simplistic listing of the project name and its description as an ongoing project was deemed enough to classify it as an advertisement under the law.

The Consequences and Final Ruling

After a thorough examination, the RERA authority concluded that Sanali Housing’s actions were a direct violation of Section 3(1) of the RERA Act. The developer had publicly presented the Sanali Pinnacle as an active, luxurious project while failing to register it with the required authorities. This clear breach led to the imposition of the hefty fine and the directive to halt all further promotional activities until proper registration was completed.

As TG RERA continues to crack down on non-compliant developers, this case serves as a pivotal reminder of the importance of following legal protocols in real estate development. It also reinforces the role of RERA in safeguarding the interests of consumers and ensuring transparency in the sector.