TG-RERA Slaps ₹22L Fine on Arakala Realty for Unregistered Pre-Launch Ads
HYDERABAD: The Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a penalty of ₹22,41,525 on Arkala Realty Infrastructure Pvt. Ltd. for advertising a proposed residential villa project at Tukkuguda without mandatory registration under the Real Estate (Regulation and Development) Act, 2016.
In an order dated February 23, 2026, the Authority held that the promoter violated Section 3 of the Act by undertaking pre-launch advertisement and promotion of an unregistered project.
Suo motu action over social media promotion
The proceedings were initiated suo motu under Section 35(1) of the Act after the Authority received information about social media advertisements promoting an upcoming villa project near ORR Exit-14 at Tukkuguda, Hyderabad.
The promoter, represented by Managing Director Arakala Praneeth Reddy and Director Arakala Prudvi Reddy, had publicised the project through social media platforms and its official website. The promotional material highlighted residential villas with amenities and invited prospective buyers to register interest and visit the site.
Following preliminary verification, TG-RERA found that no such project was registered with the Authority as required under Sections 3(1) and 4(1) of the Act. It also confirmed that no application for registration had been received.
A show-cause notice was issued on July 31, 2025, asking the promoter to explain why penal proceedings under Sections 59 and 60 of the Act should not be initiated.
Authority rejects ‘general announcement’ claim
In its written reply dated August 25, 2025, the promoter stated that the social media post was only a general announcement of its intent to launch a future project and was meant to gauge market interest. It said no plots or villas were advertised for sale, no bookings were made, and no advances were received.
The promoter further stated that the post did not amount to an offer for sale or invitation to purchase under Section 3(1) of the Act. It added that the post was removed after receiving the show-cause notice and that its ongoing projects were duly registered with TG-RERA. The company sought closure of the proceedings.
However, the Authority noted that the promotional brochure and content on record projected the development as a residential villa project with specific amenities and invited prospective buyers to register interest and visit the site for booking units.
The Authority held that such activity amounted to advertisement and promotion under Section 3(1) read with Section 2(b) of the Act. It observed that the Act does not permit any form of pre-launch advertising or public representation of a real estate project without prior registration.
“Upon cumulative evaluation of the entire material placed before this Authority, it stands clearly established that the Respondent had undertaken pre-launch advertising and promotion of an unregistered real estate project without obtaining the mandatory registration,” the order stated.
Payment within 30 days; further action warned
Invoking Sections 35, 37 and 38 of the Act, the Authority directed the promoter to remit the penalty of ₹22,41,525 within 30 days from receipt of the order to the TGRERA Fund.
It also restrained the promoter from advertising, marketing, promoting, booking, selling or offering for sale the proposed project at Tukkuguda until it is duly registered and compliant with the Act and relevant rules.
The Authority warned that failure to comply with the directions would attract further penal consequences under Section 63 of the Act.
