HYDERABAD: The Telangana Real Estate Regulatory Authority (TGRERA) has come down heavily on Hyderabad-based developer M/s R Homes for allegedly using “Agreements for Investment” as a device to bypass provisions of the Real Estate (Regulation and Development) Act, 2016, while marketing its “Jai Vasavis Bliss Heights” project. In a detailed order issued on May 16, […]<![CDATA[
HYDERABAD: The Telangana Real Estate Regulatory Authority (TGRERA) has come down heavily on Hyderabad-based developer M/s R Homes for allegedly using “Agreements for Investment” as a device to bypass provisions of the Real Estate (Regulation and Development) Act, 2016, while marketing its “Jai Vasavis Bliss Heights” project.
In a detailed order issued on May 16, 2026, the Authority described the developer’s conduct as a “circuitous and impermissible” attempt to defeat the intent of the law. TGRERA held that the agreements executed by the developer, though styled as “investment agreements”, contained all the essential features of sale agreements, including identification of specific units and promised amenities.
The Authority observed that the respondents collected money from buyers before obtaining mandatory RERA registration, violating Section 3 of the Act. The project later secured registration bearing No. P02200007023 on September 23, 2023.
The complaints were filed by multiple allottees, including Narasimhula Upendra, Kollipara Venkateswara Rao, Sanjeev Kumar Thatipally, Karna Sreenivas Rao, Mukkamala Srirama Chandra Murty, Kattoju Rajesh Kumar, Ch. Abhigna, Chilakalapudi Venkateswara Rao, Y Jayendra Shanmukh, Anumula Sirisha, Kanakavalli Panguluru, Bukka Ram Narayana and Eppa Raju.
The respondents were initially represented before the Authority but were later set ex parte after failing to appear despite repeated notices and adjournments.
According to the complainants, the company carried out extensive promotional campaigns, including celebrity endorsements and “pre-launch” offers, to attract investors. Buyers alleged they were assured of high returns and were told the venture was legally approved.
The Authority noted that a Bhoomi Pooja was conducted on April 21, 2022, allegedly to create confidence among prospective buyers even before the execution of the Agreement of Sale-cum-General Power of Attorney with landowners. TGRERA held that the sequence indicated deliberate misrepresentation.
Forged approval letter circulated on WhatsApp
The order further recorded that a mediator linked to the project, identified as Poornachander Rao Gadidottu alias Poornaiah, circulated a forged or misleading RERA approval letter through a WhatsApp group to falsely project that the project had already received regulatory approval.
Buyers told the Authority they made substantial payments relying on those representations. One complainant reportedly paid more than ₹35 lakh towards the project.
Despite collecting funds from multiple allottees, construction activity remained negligible. An inspection conducted during the proceedings reportedly found that the project achieved only 2.8% progress and that no active construction work was underway at the site.
The Authority also noted that the developer failed to submit mandatory quarterly progress reports and financial disclosures required under the Act and Telangana RERA Rules.
One buyer, Manoj Kumar Vadlamudi, had earlier lodged FIR No. 87/2024 before the Economic Offences Wing on November 22, 2024, alleging fraud and cheating linked to the project’s pre-launch scheme.
Authority restrains further sales and marketing
Invoking powers under Sections 37 and 38 of the Act, TGRERA restrained M/s R Homes from advertising, marketing, booking, selling or collecting any further money in relation to the project until further orders.
The Authority directed the developer to refund all amounts collected from the complainants along with interest at 10.70% per annum, calculated from the dates of payment until realisation. The refunds must be completed within 60 days of receiving the order.
TGRERA also directed its Secretary to initiate proceedings under Sections 59 and 60 for imposition of penalties for violations of Sections 3 and 13 of the Act. In addition, the Secretary was instructed to issue a show-cause notice within seven days asking why the project’s registration should not be revoked under Section 7 of the Act.
The Authority observed that allowing the project registration to continue in such circumstances would be contrary to the objective of the Real Estate (Regulation and Development) Act and could cause further prejudice to buyers and the public.
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