All projects without Occupancy Certificate fall under RERA: TG RERA

The Telangana Real Estate Regulatory Authority (TG RERA) has clarified that all real estate projects which had not obtained an Occupancy Certificate (OC) or Completion Certificate at the time the RERA Act–2016 came into force will fall within its jurisdiction. The Authority stated that irrespective of when building permissions were secured, any project without an OC would be treated as an “ongoing project.” With this clarification, it reiterated that RERA provisions are applicable even to older projects.

During the hearing of a complaint filed by Sangeeta Singh (Complaint No. 287/2024) , the Authority expressed serious concern over the conduct of M/s Provident Housing Limited . TG RERA made it clear that flats sold to buyers must be free from any encumbrances or mortgages, and allocating mortgaged units to purchasers is unlawful.

The Authority further stated that under Section 13 of the RERA Act , collecting more than 10 per cent of the total flat cost without a registered sale agreement is prohibited. It observed that in this case, the developer had collected amounts exceeding the 10 per cent limit.

With regard to delayed possession, TG RERA clarified that under Section 18 , payment of interest for delay is applicable only if a specific possession date is clearly mentioned in a registered agreement. In the absence of a written registered agreement, interest payments would not apply.

Although no penalty was imposed in this case in view of the amendments that came into effect on March 4, 2025 , the Authority warned that strict action would be taken in future instances of violations.

As the developer completed the sale deed and handed over the flat to the buyer during the pendency of the proceedings, the complaint was disposed of. The ruling is seen as providing greater clarity on the enforcement of RERA provisions.

What is the RERA Act–2016?

The Real Estate (Regulation and Development) Act, 2016 was enacted by the Central Government to bring transparency to the real estate sector and safeguard the rights of homebuyers. Under the Act, every real estate project exceeding a specified size must be registered with the respective State Regulatory Authority. Developers are required to publicly disclose project details, construction progress, and completion timelines.

The Act prohibits collection of more than 10 per cent of the flat cost without a registered sale agreement. If possession is not handed over within the stipulated timeframe mentioned in the agreement, buyers are entitled to seek interest or a refund. The implementation of the Act has increased accountability among developers and strengthened legal protection for consumers.