Telangana RERA Protects Homebuyers: Aura Velimala Case

The Aura Velimala Saga: When Telangana RERA Stood Up for Homebuyers

In the heart of Velimala, a quiet village in Telangana’s Sangareddy district, hope once bloomed among 62 families who dreamed of owning a new home. They placed their trust—and their life savings—in the promise of ‘Aura Velimala Phase 1’, a project by Bhuvanteza Infrastructures LLP. Little did they know, their journey would soon become a cautionary tale of caution, resilience, and the power of regulation.

A Dream Deferred

The story begins with signed agreements—unregistered, as it turned out—between eager homebuyers and the developer. The deal was simple: flats would be ready by December 2023. But as the months rolled by, construction barely crawled forward. By June 2024, only 20% of the project was complete. The dream of a new home was slipping away, replaced by anxiety and financial strain.

Families found themselves in a double bind—paying rent for their current homes and EMIs on loans for unfinished flats. The developer had promised to cover rent if the project was delayed, but reminders went unanswered. Worse, without land registered in their names, buyers feared the developer might sell the property to someone else, leaving them with nothing.

The Call for Justice

Anguished, the homebuyers turned to the Telangana Real Estate Regulatory Authority (TGRERA), sharing their plight. Their voices were heard. TGRERA launched a thorough investigation, scrutinizing every document and submission. The findings were clear: Bhuvanteza Infrastructures LLP had violated the law by starting the project without registering it under the Real Estate (Regulation and Development) Act, 2016.

“No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act,” the authority emphasized.

The Verdict

TGRERA did not mince words. The developer’s plea—that approvals were pending or registration was in process—was dismissed. The law, the authority noted, makes no exceptions for provisional or pending applications.

The order was decisive: Bhuvanteza Infrastructures LLP and its partners were jointly and severally liable to pay a penalty of ₹14.9 lakh for violating Sections 3 and 4 of the Act. More importantly, they were ordered to refund all money collected from the 62 homebuyers, with 11% annual interest from the date of agreement until full repayment.

A New Dawn for Homebuyers

While the scars of delay and uncertainty remain, the TGRERA order marks a turning point. It reaffirms the rights of homebuyers and the importance of regulatory oversight in India’s real estate sector. As the developer faces the consequences, the story of Aura Velimala serves as a powerful reminder: in the world of real estate, trust must be backed by transparency and the rule of law

Key Points

• 62 homebuyers affected by unregistered project agreements
• Only 20% construction completed by June 2024
• Developer failed to register project under RERA Act
• Homebuyers faced financial strain, paying rent and EMIs
• TGRERA imposed ₹14.9 lakh penalty and ordered refunds with 11% interest
• No exceptions for pending approvals or provisional applications