TG RERA: Advancing towards Stronger Enforcement
Introduction
The Indian Real Estate sector is one of the most prominent and consistent sectors of investment in India, contributing 7.3% of the nation’s GDP and expected to grow upto USD 1 Trillion by the year 2030[1]. The Real Estate Regulatory Authority (“RERA”), established under the Real Estate (Regulation and Development) Act, 2016 (“Act”), was acclaimed as the cornerstone of legislation, bringing accountability, efficiency and transparency to the real estate sector in India. With the aim of establishing a uniform regulatory environment throughout the country and ensuring timely project completion and dispute resolution mechanism, RERA’s major role, was to ensure that the investments in the sector are protected and safeguarded, thereby instilling trust and consequently ensuring the projected growth.
However, despite having modest regulatory objectives, significant challenges were faced by the Telangana Real Estate Regulatory Authority (“TGRERA”) due to the limited powers of enforcement granted to the authority to exercise its powers. The state-specific rules and regulatory framework demanded immediate improvement in order to tackle the rapidly growing real estate market of Telangana. This requirement has been satisfactorily addressed by the recent amendment bearing G.O. Ms. No. 60 dated 04.03.2025 (“Amendment”), to the Telangana Real Estate (Regulation and Development) Rules 2017 (“Rules”), essentially whipping out the limitations and paving the way to instil confidence and trust of internal as well as foreign investors in the Telangana Real Estate market. This paper identifies the aforementioned limitations and highlights the importance of the amendment conferring TGRERA with the much-needed ammunition to ensure compliance and protect stakeholders’ interests.
Legislative Framework Prior to the Amendment[2]
The Act has been formed by the legislature to streamline the process of real estate development and infrastructure projects, while also constituting a body to safeguard the rights of the purchasers and allottees of property. Under the Act, every promoter, developer or real estate agent, as the case may be, before advertising or inviting persons to purchase any type of property from their project (where development exceeds 500 sq.mt. or 8 apartments), has to get their project registered with RERA. Such registration not only brings the project under the supervision of RERA but also ensures that the developer performs certain pre-requisites set under the Act, to safeguard the prospective investors, homebuyers and purchasers from frivolous and malicious projects.
The Act’s adjudicating mechanism includes adjudicating complaints relating to violations of sections 31, 32, 34, 35 and 40 by RERA, while issues pertaining to compensation and computation of interest are specifically dealt with by the Adjudicating Officer under sections 71 and 72. Orders of both RERA and the Adjudicating Officer are appealable before the Real Estate Appellate Tribunal (“REAT”), as constituted under section 43 of the Act, and further appeals would lie before the High Court under section 58 of the Act, respectively. This framework clearly establishes a hierarchy of forums, designed to secure speedy resolution of disputes.
The Act bestows a wide range of functions and powers on RERA, enumerated under sections 34 to 40 of the Act, including but not limited to, ensuring compliance with obligations and prerequisites cast upon the promoter or developer, calling for explanations or documents relating to real estate projects, imposing penalties or interest, etc. However, the Telangana Real Estate (Regulation and Development) Rules, 2017 revealed a critical gap in the mechanism to enforce non-monetary directions, particularly, the orders of specific performance.
Owing to the above limitations prior to March 2025, TGRERA would only impose financial penalties and interest on non-compliant persons and issue a recovery certificate, which was addressed to the concerned District Collector for enforcement as arrears of land revenue through powers conferred upon them under the Revenue Recovery Act, 1890. This procedure was not only time-consuming due to administrative delays, but also impractical as the recovery rate was marginally low.
Expansion of TGRERA’s Enforcement Powers
Recognizing the above limitations faced by TGRERA, Government of Telangana through Municipal Administration & Urban Development (MU & AD) Department, issued Notification bearing G.O. Ms. No. 60 dated 04.03.2025, amending the Telangana Real Estate (Regulation & Development) Rules 2017, inter alia, inserting Rule 23 (2) and granting the Adjudicating Authorities with powers to enforce their orders in the same manner as if it were a decree or order made by the principal civil court or send the order to principal civil court for execution[3].
This landmark amendment not only elevates TGRERA’s orders to the status of civil court decrees but also brings TGRERA on equal footing to RERA Authorities of other states. Furthermore, TGRERA also announced the formation of an Enforcement Wing, with competent officers dedicated to addressing the delay in enforcement and taking swift action against non-compliance with orders[4]. The new enforcement mechanism appears to be modelled on Gujarat’s RERA, which has already proven itself to have the most robust mechanism such as direct enforcement of REAT orders for revenue recovery, power to arrest defaulters for non-compliance of orders and dedicated civil prison facilities for RERA enforcement cases.
Comparative Analysis of Execution Powers of TGRERA
Following the above amendment, Telangana’s RERA and REAT are now equipped with execution powers akin to the Civil Courts under Order XXI of the Code of Civil Procedure, 1908. These include powers to pass appropriate orders such as Delivery of Property, Attachment and Sale of Property, Arrest and Detention and/or Appointment of a Receiver. The implementation of these powers would definitely instil confidence in the stakeholders and consequently increase the inflow of execution petitions for the enforcement of TGRERA orders. While on paper, the mechanism of enforcement appears to be ironed out, the same can be further refined by drawing inspiration from best practices from other states.
For instance, Kerala RERA pioneered in safeguarding the interests of stakeholders by permitting an association of flat allottees to take over an under-construction apartment project after the promoter failed to deliver[5]. On the other hand, Gujarat RERA has notified a specialised ‘Execution Regulation’ and appointed dedicated Authorized Officers to carry out enforcement of RERA orders. Similarly, Karnataka RERA has set up a Recovery Cell (consisting of a deputy commissioner and tahsildars) to enforce recovery of arrears.
Implications and Future Prospects
While the aforementioned amendment marks a significant evolution in the state’s approach towards regulating the real estate sector, empowering TGRERA with more robust enforcement mechanisms and addressing the critical gaps in the framework would create conditions for greater transparency and accountability, thereby instilling confidence among homebuyers and investors. It is also necessary to encourage authorities to exercise these new powers and closely monitor the process to identify any further refinements. These actions would significantly enhance market confidence and boost the overall health and stability of the real estate sector.
References
[1] KPMG & NAREDCO | Navigating the dynamics of real estate in India | February 2024
[2] The Real Estate (Regulation and Development) Act, 2016 | Ministry of Housing and Urban Affairs (India)
[3] Amendment to Telangana Real Estate (Regulation & Development) Rules, 2017 | G.O. Ms. No. 60: dt. 4 March 2025 | Government of Telangana, Municipal Administration & Urban Development Department (India)
[4] Telangana RERA to Form Enforcement Wing for Swift Action on Builder Non-Compliance | Real Estate Law Journal | 4 June 2024 | https://realestatelawjournal.in/telangana-rera-to-form-enforcement-wing-for-swift-action-on-builder-non-compliance/
[5] In re: MIR Builders and Developers Pvt Ltd | Suo Moto proceedings No. 1891/L1/K-RERA/2024 | Kerala Real Estate Regulatory Authority, Thiruvananthapuram | 02 August 2025 | https://rera.kerala.gov.in/storage/documents/401.pdf