Homebuyer wins: RERA fines Sunrise Constructions ₹5 lakh in Hyderabad
HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) has imposed a penalty of ₹5,00,000 on Sunrise Constructions and directed its promoters to execute and register a flat sale deed within 30 days in favour of a complainant who had paid nearly ₹55 lakh but was denied possession.
The complainant had purchased Flat No. 411 in “Sunrise Abode,” located at Beeramguda Main Road, Mallikarjuna Nagar, Ramachandrapuram, Sangareddy district, for a total consideration of ₹67.25 lakh. An agreement of sale was executed on October 20, 2022, and a subsequent agreement was signed on March 1, 2024, reflecting the prevailing market value. Despite the agreements and substantial payments, registration and possession were delayed.
Buyer alleged irregular payments, threats
According to the complaint, payments amounting to ₹51.50 lakh were made directly to promoter Ch. Bal Reddy and his associates, along with ₹3.50 lakh towards registration and loan processing charges. The complainant alleged that money was collected in multiple personal accounts, including those of relatives and employees, instead of the mandatory designated project account.
The buyer further stated that additional sums were demanded under pressure, including ₹1.50 lakh as interest. Despite repeated requests, the promoters failed to register the flat or hand over possession.
RERA finds statutory breach
The Authority held that routing of payments through personal accounts, instead of the designated project account, was a violation of Section 4(2)(l)(d) of the Real Estate (Regulation and Development) Act, 2016. Internal disputes among partners were found to be no defence for withholding registration when 80–90% of the flats in the project were already occupied.
“The conduct of routing payments through multiple personal accounts appeared to be a device intended to evade statutory safeguards,” the Authority observed.
Penalty and directions
Holding promoters jointly and severally liable, RERA imposed a penalty of ₹5 lakh under Section 60 of the Act. It directed Respondents No. 1, 2 and 3 to:
Execute and register the sale deed for Flat No. 411 in Sunrise Abode within 30 days, subject to balance payment as per agreement;
Hand over lawful possession in compliance with the sanctioned plan;
Ensure all future payments are deposited strictly in the designated project account.
The order also warned that future violations could invite stricter action, including declaration of the promoters as defaulters.
The complaint was disposed of with these directions.
