Authority finds promoter violated RERA by allotting a flat before project registration; restrains recovery of previous allottee's penalty charges.

Telangana RERA Orders Penalty Proceedings Against Pacifica for Pre-RERA Flat Booking.

The Telangana Real Estate Regulatory Authority (TG RERA) has initiated penalty proceedings against Pacifica Constructions Pvt. Ltd. for allotting a flat nearly two years before the company registered its Aavas Hyderabad project under the Real Estate (Regulation and Development) Act. The authority ruled that booking a flat in 2017, before the project’s 2019 RERA registration, violated Section 3 of the Act, which bars promoters from marketing or selling units in unregistered projects. Homebuyers Nitika Saraf and Vishal Saraf also alleged delays in possession, construction defects, inadequate amenities, undisclosed penalty charges, and increased maintenance fees. Pacifica defended itself, citing Covid-19-related deadline extensions, issuance of the occupancy certificate in September 2025, and execution of the sale deed in December 2025. TG RERA dismissed the possession claim as infructuous after the sale deed but restrained the developer from recovering penalty charges linked to the previous allottee while directing penalty proceedings for the RERA violation.