TGRERA pulls up R Homes for ‘investment agreement’ ruse, orders refunds with 10.70% interest

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...