RERA Fines Hyderabad Realtor Rs 4.2 Lakh for Unregistered Project Promotion

The Telangana Real Estate Regulatory Authority (TGRERA) has fined a real estate developer ₹4.2 lakh for promoting a project in Hyderabad without the required registration.

The developer, Sanali Housing Projects Pvt Ltd, was found to have advertised its project Sanali Pinnacle, located in Shaikpet, without registering it with TGRERA or getting necessary approvals from the Greater Hyderabad Municipal Corporation (GHMC).

According to the official order, the penalty was imposed under Section 59 of the Real Estate (Regulation and Development) Act, 2016, for violating Sections 3 and 4 of the Act. TGRERA also directed the developer to immediately register the project. Until registration is completed, the developer has been barred from advertising, selling, booking, or offering any units in the project.

Background of the Case

Sanali Pinnacle is a mixed-use project with both residential and commercial units. The landowners who filed the complaint had entered into an agreement with the developer back in March 2021. The agreement clearly stated that construction would only begin after obtaining GHMC approvals. However, the developer failed to secure these approvals even after three years and did not provide any updates.

Despite this, the developer went ahead and advertised the project online—on Google, real estate websites, and their official site—falsely claiming that all approvals were in place. Promotional boards were also put up at the project site with messages like "Sanali Coming Soon…"

What TGRERA Found

TGRERA cited Section 3 of the RERA Act, which clearly prohibits advertising or selling any real estate project unless it is registered with the authority. It noted that Sanali Housing had listed the project as “ongoing” on its website and promoted it as a luxury apartment complex with 40 units—without registering it.

In its defence, the developer argued that the information posted was not an advertisement since it didn’t include key details like price or location. However, TGRERA rejected this argument, pointing out that under Section 2(b) of the Act, any promotional content shared with the public—regardless of how much detail is given—counts as an advertisement.

As a result, the authority concluded that the developer violated Section 3(1) of the RERA Act by promoting an unregistered project and imposed the penalty. Meanwhile, Sanali Housing Projects is yet to respond to this. Its response is awaited.