Paradise Peak Fined INR 11.5 Lakh by Telangana RERA
In a significant move to uphold the regulatory framework governing the real estate sector, the Telangana Real Estate Regulatory Authority (TG RERA) has slapped an INR 11.5 lakh fine on Paradise Peak Private Limited for failing to register its 12-acre layout project in Zaheerabad. This action comes after a buyer, M Santhosh, filed a formal complaint against the developer, highlighting several discrepancies in the project’s execution, including the lack of mandatory registration required under the Real Estate (Regulation and Development) Act (RERA), 2016.
The complaint pointed out not only the absence of registration but also alleged ongoing disputes between the landowner and the developer. These legal conflicts led to arbitration proceedings that, according to the complainant, further jeopardised the interests of prospective buyers. In the complaint, Santhosh stressed that these issues made the transaction riskier for those investing in the project, especially with the developer’s failure to comply with regulatory requirements.
At the hearing on November 20, 2024, TG RERA found that while the complainant was not directly harmed, the developer had indeed violated key provisions of the RERA Act. The regulatory body, chaired by retired IAS officer N Satyanarayana and assisted by members K Srinivasa Rao and Laxmi Narayana Jannu, concluded that Paradise Peak’s actions breached the law governing real estate projects. Notably, the developer exceeded the legal limit for mandatory registration, as set out in Section 4 of the Real Estate (Regulation and Development) Act. In light of these findings, TG RERA directed the company to pay the imposed fine within 30 days. Furthermore, the developer was instructed to submit a formal registration application within 15 days. Until the project is fully registered, TG RERA imposed a strict prohibition on advertising, marketing, or selling any plots related to the project.
The fine highlights the importance of compliance in the real estate sector, especially in an era where consumer protection and transparency have become paramount. The regulator emphasised that such non-compliance could pose significant risks to the real estate ecosystem, and buyers’ trust must be safeguarded at all costs. TG RERA’s decision is not only a reminder of the power of regulations but also sends a strong message to other developers about the need for accountability in project execution.
Paradise Peak Private Limited, established in 2017 and based in Zaheerabad, is directed by Mohd Sikander Rayees and Mohd Mehboob. The company’s failure to adhere to regulatory norms has now resulted in substantial legal and financial implications. For the real estate sector, the fine imposed on Paradise Peak reinforces the critical role of RERA in regulating and maintaining transparency in the fast-evolving market. Established to protect consumers and promote trust, TG RERA’s actions resonate with its core mission to ensure compliance and promote long-term stability in Telangana’s real estate sector.
The episode also underscores the importance of ensuring that real estate developments follow the legal framework laid out by RERA, which was designed to enhance the overall health of the industry. While disputes between developers and landowners may occasionally arise, as witnessed in this case, it is essential that such issues be resolved promptly and transparently to protect consumer interests and maintain the credibility of the industry.
