How RERA Protects Homebuyers in Telangana

Buying a home is the single largest financial decision most families make. In Hyderabad's dynamic real estate market — with projects ranging from affordable housing in the city outskirts to premium towers in Gachibowli and Kokapet — the risks to homebuyers have historically been significant: delayed possession, quality shortcuts, and builders disappearing with advances. The Real Estate (Regulation and Development) Act 2016 was enacted specifically to change this equation.

This article explains how RERA operates in Telangana through the Telangana Real Estate Regulatory Authority (TS-RERA), what rights it gives you as a homebuyer, and what you can do when things go wrong.

What is RERA and Why Does It Matter?

The Real Estate (Regulation and Development) Act 2016 (RERA) brought a previously unregulated sector under statutory oversight for the first time. Before RERA, a homebuyer's only recourse against a builder was an expensive civil suit or a consumer forum complaint — both slow and uncertain. RERA created a dedicated regulatory authority, mandatory project registration, builder accountability obligations, and a specialised adjudication mechanism.

Telangana established the Telangana Real Estate Regulatory Authority (TS-RERA) under the Act. TS-RERA regulates real estate projects in Telangana, processes registrations, and adjudicates complaints.

Which Projects Must Register with TS-RERA?

Registration is mandatory for:

• All residential and commercial projects where the plot area exceeds 500 square metres, or where the number of apartments exceeds 8 (counting all phases)
• Real estate agents selling or facilitating the purchase of registered projects

Projects that are already completed (received completion certificate before RERA came into force) are exempt. Ongoing projects without a completion certificate as of May 2016 were required to register.

Important: If a builder is selling units in a project that requires registration but has not registered, purchasing a unit in that project carries substantial legal risk. The builder is operating illegally and you have fewer protections.

Builder and Promoter Obligations Under RERA

RERA imposes a comprehensive set of obligations on builders (referred to as "promoters" in the Act):

Project Registration and Disclosures

A registered promoter must disclose on the TS-RERA website: - Project layout, floor plans, and specifications - Land title documents and approvals - Financial statements - Names and details of architects, contractors, and structural engineers - Expected project completion date - Quarterly progress updates

This transparency allows buyers to verify claims before committing.

The 70% Escrow Requirement

One of RERA's most significant protections: promoters must deposit 70% of the amounts received from buyers into a dedicated project bank account. This fund can only be used for land and construction costs of that specific project, verified by a certified engineer, architect, and chartered accountant.

This provision was enacted directly in response to the widespread practice of builders diverting buyer advances to fund other projects — leaving buyers of Project A stranded when Project B also collapsed.

No False Advertising

Builders cannot advertise, market, sell, or offer for sale any unit in a project without first registering with TS-RERA. Any advertisement must carry the RERA registration number. Brochures, websites, and sales pitches cannot contain false or misleading statements about the project.

Delivery Timeline Obligations

The registered completion date is legally binding. If the project is delayed, the builder owes buyers interest on their deposits at the SBI MCLR plus 2% — currently a meaningful rate. Buyers also have the right to withdraw from the project and receive a full refund with interest if the builder fails to deliver.

Homebuyer Rights Under TS-RERA

Right to Timely Delivery

You are entitled to possession of your unit by the registered completion date. If the builder delays without a valid reason accepted by the Authority, you are entitled to compensation.

Structural Defect Warranty — 5 Years

If any structural defect, defect in workmanship, quality, provision of services, or any other obligation is brought to the promoter's notice within five years of possession, the promoter must rectify it within 30 days at no charge. This 5-year structural warranty is a significant statutory protection — get it in writing and document all defects.

Right to Accurate Information

Before signing any agreement, you have the right to inspect all documents held by the builder — approved plans, title documents, encumbrance details, commencement and occupancy certificates. Do not sign a sale agreement based on brochures and promises alone.

Right to Refund for Delay or Non-Delivery

If the builder fails to complete or is unable to give possession by the agreed date, and you wish to withdraw, you are entitled to a full refund of the amount paid with interest and compensation. You do not have to continue in a project that is indefinitely stalled.

How to Verify a Project on TS-RERA Portal

Before booking a unit in any project in Telangana, visit rera.telangana.gov.in and:

1. Click on "Projects" and search by project name, locality, or builder name
2. Verify the RERA Registration Number matches what the builder's brochure states
3. Check the registration validity date — the project must not have expired
4. Review the uploaded documents: layout plan, approved permits, land title
5. Check quarterly progress reports — these tell you if the project is on schedule
6. Verify the agent's registration if you are buying through a real estate agent

A few minutes on this portal can prevent years of grief.

How to File a Complaint with TS-RERA

When a builder violates RERA provisions, you can file a complaint before the TS-RERA Authority or before the Adjudicating Officer (for compensation claims).

Step-by-Step Complaint Filing

1. Gather documents: Sale agreement, payment receipts, builder communications, RERA registration details of the project, photographs (if relevant to defect claims)

1. File online: Visit rera.telangana.gov.in → Complaints → File a Complaint. The portal accepts complaints with supporting document uploads.

1. Pay the complaint fee: A nominal filing fee applies (check the current schedule on the portal).

1. Complaint admission: TS-RERA reviews and admits the complaint, then serves notice on the builder.

1. Hearing: Both parties are given an opportunity to present their case. The process is less formal than civil court but structured. You can appear personally or through a lawyer.

1. Order: TS-RERA passes an order directing refund, possession, compensation, or other appropriate relief.

Adjudication of Compensation

If your complaint involves a claim for compensation — for delayed possession, defective construction, or other losses — it is adjudicated by the Adjudicating Officer appointed under RERA. The Adjudicating Officer can award compensation including:

• Interest on advances for the delay period
• Compensation for financial loss due to the builder's failure
• Damages for mental agony in appropriate cases

Penalties for Builders

RERA has significant penal provisions for non-compliant builders:

• Failure to register: Penalty up to 10% of project cost; continued violation can result in imprisonment up to 3 years
• Providing false information: Penalty up to 5% of project cost
• Non-compliance with TS-RERA orders: Penalty up to 5% of project cost; further non-compliance can result in imprisonment up to 1 year

These penalties are not merely on paper — TS-RERA has imposed penalties and published orders against defaulting builders in Hyderabad.

Appeal to the Appellate Tribunal

If you are dissatisfied with a TS-RERA order, or if the builder challenges an adverse order, the matter can be appealed to the Real Estate Appellate Tribunal for Telangana within 60 days of the order. From the Appellate Tribunal, a further appeal lies to the High Court on questions of law.

Practical Tips for Homebuyers in Hyderabad

• Never pay before RERA registration: No builder should accept an advance before the project is registered. Insist on seeing the RERA number and verify it yourself.
• Read the sale agreement carefully: Under RERA, the agreement for sale must be in a format that cannot be one-sidedly tilted against the buyer. If the agreement gives the builder unlimited extension rights without compensation, push back.
• Track quarterly updates: Registered projects must file quarterly updates on TS-RERA. If your builder stops filing updates, that is a warning sign.
• Document everything: Keep copies of all payment receipts, letters, emails, and communications with the builder. In a dispute, documentation is everything.
• File early: RERA complaints are subject to limitation periods. Do not wait indefinitely hoping the builder will come around.

Hyderabad's real estate market has matured significantly under RERA, and TS-RERA has been reasonably active in adjudicating complaints. The law is on the buyer's side — but only if buyers know their rights and exercise them.