Registration of pre launch plots, flats likely to be prohibited

Finally, the Telangana government has taken a crucial decision and began taking measures to protect the innocent buyers from the clutches of prelaunch fraudsters. In this regard, the RERA has been directed to publish the names and phone numbers of the companies selling flats in the pre-launch in the State. As part of this, the pre-launch scam of Square Yards Factory in the surrounding areas of Chevella, has been exposed. The RERA officials have released a press statement informing that the said company is selling plots in pre-launch schemes in five layouts and people have been advised against buying them under any circumstances. The company phone numbers also were given wide publicity. It is reported that RERA is preparing to release the names of other organisations in the same manner.

After the formation of Telangana RERA in Hyderabad, sale of plots and flats without its prior permission has been prohibited. Any violations will attract a fine of 10 percent of the project value. So far, the RERA authority has issued notices to more than 50 such companies in the city. Some of them have replied to notices served by the RERA authorities, other companies continued their operations without caring about the rules. Some other companies are selling flats in pre-launch projects and then taking the RERA approval. Aurobindo Realty has sold flats in its Regent project launched in Kondapur under pre-launch schemes in the guise of the Expression of Interest. Later RERA took permission. Bengaluru-based Prestige Estates sold flats in a similar manner and many are waiting eagerly for the RERA authorities to initiate action against the company.

Bhuvanteja next?

Bhuvanteja group is considered as the pre-launch king of Hyderabad. Because this company has no experience of building apartments in the past. But, it fooled people by promising to provide them flats in Shamirpet at rates as low as Rs 12 to 16 lakhs. The RERA authorities, who were aware of this, issued notices. However, the company reportedly has not cared to respond. Soon, the RERA officials are expected to issue a press statement, advising people not to buy flats from such companies. It is reported that RERA will issue a press statement regarding several companies like RJ Group, Jaya Group, Ira Realty, Suhas Projects, and Prestige Estates which indulged in pre-launch sales without RERA approval and did not deliver flats till date.

Plans for RERA?

Former Chief Secretary Somesh Kumar was suddenly transferred to Andhra Pradesh. But about a week earlier, he is learnt to have taken several important decisions pertaining to RERA. Accordingly, the government has decided to write to the Stamps and Registration department not to register plots and flats in the projects which do not have the RERA approval. Similarly, it will also write to the Municipal Administration department to issue orders to the Urban Local Bodies to remove the corner stones/boundary walls of the plots in the ventures laid out without the RERA permission.

Further, the licenses of the construction companies indulging in sale of flats or plots without RERA approval, also would be revoked. However, with A Santhi Kumari replacing Somesh Kumar as the new Chief Secretary, several doubts are being raised by concerned citizens on whether the RERA authority is a priority and to what extent it will be strengthened. They are also raising questions if she takes any measures to stop pre-launch sales and implement decisions taken by former Chief Secretary Somesh Kumar. We have to wait for some more time to get answers to all these questions.