Telangana RERA Pushes for Stronger Enforcement Authority

In a bid to strengthen its enforcement capabilities, the Telangana Real Estate Regulatory Authority (TG-RERA) has requested the state government to amend the existing RERA rules to empower the authority with the right to directly recover penalties from defaulting real estate developers.

This move comes in the wake of TG-RERA recovering less than 50% of the total penalties levied on non-compliant real estate projects. Since its permanent establishment last year, TG-RERA has taken stringent actions against 918 ventures, issuing penalty notices amounting to ₹31 crore. However, the authority has only managed to collect about ₹13 crore of this sum. To expedite the recovery process, TG-RERA has proposed an amendment to the Telangana RERA rules, seeking the power to enforce penalty recoveries without relying on district collectors.

“Under the current regulations, district collectors are authorised to enforce the recovery of penalties imposed under the Act. The state authority itself does not have this right. We have therefore submitted a proposal to the state government to allow TG-RERA, the adjudicating officer, or the appellate tribunal to legally recover these outstanding penalties,” said a TG-RERA official. The official highlighted challenges such as “non-cooperation from developers, legal disputes, and financial instability of certain promoters” as significant obstacles to recovery.

Despite Telangana setting up a state RERA in 2017, the authority remained largely inactive and was overseen by an interim chairman until July 2023. Since then, there has been a notable increase in the number of complaints lodged by aggrieved buyers and allottees concerning violations by promoters. The breach of project timelines is identified as the most frequent complaint received by the authority.

“We are making efforts to address as many complaints as possible. However, challenges such as limited staff hamper our efforts,” the TG-RERA official added.

The proposed amendments to the RERA rules are aimed at equipping TG-RERA with the necessary legal authority to execute orders and directives that are currently beyond its purview. This enhancement of powers is expected to improve compliance among developers and ensure timely project completions. The proactive stance of TG-RERA reflects a broader commitment to safeguarding the interests of homebuyers and promoting transparency and accountability in the real estate sector. As the authority awaits a response from the state government, stakeholders hope that these proposed changes will lead to more effective regulation and enforcement in Telangana’s real estate market.