TG-RERA Halts Amber Homes Plot Sales in Hyderabad

The Telangana RERA (TG-RERA) has halted all advertising and plot sales at the unregistered Amber Homes project in Mucherla village, Rangareddy district. In an order issued during recent proceedings, the real estate authority directed the landowner, SKA Realtors LLP, to immediately cease and desist from marketing the venture, while also initiating penalty action against two real estate agents for facilitating illegal transactions.

The regulatory crackdown follows a petition by buyer J Ravi Kishore, who reported paying more than the agreed property value for a plot that lacked mandatory regulatory approvals.

TG-RERA Restrains SKA Realtors and Initiates Agent Penalties

The case surfaced when buyer J Ravi Kishore approached the regulatory authority after agreeing to purchase a 1,000-square-yard plot in Amber Homes for ₹1.15 crore. Kishore stated that he ultimately paid ₹1.17 crore, which included registration charges, but the project had bypassed mandatory compliance protocols.

TG-RERA determined that Amber Homes qualifies as a real estate project and that its plots were being sold without the prior registration required under Section 3(1) of the Telangana RERA Act. Consequently, the authority directed SKA Realtors LLP, represented by designated partner Rakshit Agarwal, to completely stop advertising, marketing, and selling plots until the project formally obtains its RERA registration.

Additionally, the authority found that two individuals, Madhirala Rosi Reddy and Paladugu Durga Devi, facilitated transactions within this unregistered project. TG-RERA noted that Rosi Reddy violated Section 10(a) by presenting himself as a vendor or developer without legal authority, while actively concealing his status as a registered real estate agent. The authority has directed its secretary to begin penalty proceedings against both individuals under Section 62 of the Act.

What This Means for Current and Prospective Amber Homes Buyers

The regulatory freeze leaves existing buyers and prospective investors in a precarious position. Prospective buyers cannot lawfully rely on any continued marketing or sales pitches while the project remains unregistered. Furthermore, buyers are advised not to make any further payments without independently verifying the project’s compliance using the official Telangana RERA Project Search tool.

For existing purchasers, the cease-and-desist order may create temporary uncertainty regarding documentation, plot registration timelines, and potential refunds. TG-RERA records indicate that SKA Realtors completed the registration of the remaining 500 square yards in Kishore’s favour during the dispute proceedings, but this case-specific relief does not establish that all other buyers will automatically receive identical resolutions without individual scrutiny.

Impact on Plotted Ventures in the Mucherla Growth Corridor

Located in Mucherla village within the Rangareddy district, Amber Homes sits inside Hyderabad’s expanding southern real estate growth corridor. This regulatory action serves as a critical precedent for the Hyderabad-area market, actively demonstrating that plotted layouts and ventures marketed around the metropolitan region are not exempt from RERA scrutiny.

The enforcement highlights that simply describing a development as a “plotted venture” does not shield it from strict compliance when the plots are marketed as part of a consolidated real estate project. Buyers targeting the Mucherla corridor are explicitly warned to verify promoter credentials before handing over booking advances.

“TG-RERA observed that Rosi Reddy had presented himself as a vendor or developer without legal authority while concealing his status as a registered real estate agent.”

Mandatory Registration Rules Under Section 3 of RERA

Section 3 of the RERA Act establishes a foundational rule for property development: qualifying real estate projects must be fully registered before a promoter can legally advertise, market, or execute sales. The regulation prevents developers from offloading unapproved plots onto unsuspecting buyers.

According to official TG-RERA guidance, a promoter running an unregistered project can face steep financial penalties amounting to up to 10% of the estimated project cost. Similarly, real estate agents violating applicable provisions—such as facilitating sales in unapproved layouts—face cumulative daily penalties that can extend up to 5% of the total cost of the facilitated plot.

Upcoming Penalty Orders and Project Registration Filing

Following this week’s directives, the TG-RERA secretary is expected to formally proceed with the Section 62 penalty actions against Rosi Reddy and Durga Devi. The reported order has initiated the legal mechanism for these fines, though the final penalty amounts have not yet been announced.

Simultaneously, SKA Realtors and the project’s landowners must halt all commercial activity until Amber Homes clears the regulatory registration process. Property market observers and affected buyers will need to monitor the authority’s portal for the eventual publication of penalty orders and further instructions regarding existing buyer transactions.