HYDERABAD: A builder has been fined Rs 1.6 lakh and ordered to refund Rs 2 lakh to a flat buyer by the Telangana Real Estate Regulatory Authority (TG RERA) for allegedly collecting booking amount without required permissions.
Complainant Sharath had alleged that the builder, Buildox Private Limited, was marketing and collecting funds for a project named ‘The Continent’ at Kondapur/Hafeezpet without RERA registration.
Sharath claimed he first came across the project on Facebook from where he was directed to a WhatsApp chat with one Kamal. Subsequently, he said he had discussions at Buildox office with their representative Damodara Prasad who claimed to be a director of Hexasky Infra Projects handling Buildox sales.
Sharath said he was assured the project was genuine and possession was promised by 2028. Persuaded by these assurances, Sharath said he paid Rs 2 lakh as a token amount in Feb. However, he said that soon after he discovered Buildox lacked necessary approvals and the project land was under litigation, leading him to file a complaint with TG RERA.
In its response, Buildox denied all allegations, claiming the Facebook page advertising the project was fraudulent and unauthorised. The company stated it had no project named ‘The Continent’ and no ties to individuals named Kamal or Damodara Prasad. Buildox maintained they did not receive any payment related to the project. They said that when they attempted to refund Rs 2 lakh, they were unable to complete the transaction due to a block imposed by the complainant.
After reviewing the submissions, TG RERA found Buildox at fault, noting that the company failed to justify the receipt of funds and did not comply with interim orders to submit bank statements. TG RERA also stated that Buildox’s actions violated Section 3 of the Real Estate (Regulation and Development) Act, 2016, by marketing and collecting payments without proper approvals.
In its judgment on Nov 11, TG RERA imposed the penalty under Section 63 of the Act and ordered the company to refund the booking amount to Sharath within 15 days. It also warned that non-compliance would invite further action under Section 63.
