TGRERA closes suo motu case on Dakshin infrastructures of Kapil Group
HYDERABAD: The Telangana Real Estate Regulatory Authority (TGRERA) has closed a suo motu case against Dakshin Infrastructures , a Kapil Group company, after examining advertisements for Kapil Kavuri Hub and Kapil Towers published under the branding of Kapil Properties.
The proceedings were initiated under Section 35(1) of the Real Estate (Regulation and Development) Act, 2016, which empowers the Authority to act on its own based on publicly available information.
Respondent filed two replies citing approvals and rule interpretation
TGRERA had issued a show-cause notice on March 11, 2025, for potential violations of Sections 3(1) and 4(1).
Dakshin Infrastructures first replied on March 22, 2025, stating that Kapil Towers received an occupancy certificate on March 10, 2014; before the Act commenced, and therefore did not require registration.
For Kapil Kavuri Hub, the promoter said building permission was granted on September 2, 2016, before the Act came into force, and argued that the project did not fall within the definition of an “ongoing project” under Rule 2(1)(j) of the Telangana RERA Rules, 2017.
The matter was heard on April 26, 2025, where the promoter appeared and reiterated its stand.
A second reply filed on April 29, 2025, submitted that another project, Kapil Business Park was duly registered under No. P02400002352, with the registration number displayed on the official website in line with statutory requirements.
Project Approvals Summary
| Project Name | Building Permission Date | Occupancy Certificate Date |
|---|---|---|
| Kapil Towers | 09.03.2012 | 10.03.2014 |
| Kapil Kavuri Hub | 02.09.2016 | 01.02.2021 |
Authority finds legal ambiguity in old rule wording
TGRERA confirmed that Kapil Towers was outside the Act as its occupancy certificate predated the legislation.
For Kapil Kavuri Hub, TGRERA observed that the project had not obtained an occupancy certificate as on May 1, 2017, and was therefore technically registrable under Section 3(1).
However, the Authority noted that Rule 2(1)(j), as it existed before its amendment, created interpretational ambiguity by defining ongoing projects with reference to the date of building permission, which could have reasonably led promoters to believe that projects with pre-Act permissions were not required to be registered.
Non-registration held bona fide; no penalty imposed
The Authority clarified that Kapil Kavuri Hub was not declared exempt under the Act.
However, it accepted that its non-registration “stemmed from a bona fide interpretation of Rule 2(1)(j) as it existed prior to the March 2025 amendment”.
Given this ambiguity, TGRERA held that the promoter’s conduct did not constitute a wilful violation and declined to impose penalties under Sections 59 or 60.
Explicit warning issued for future compliance
TGRERA placed all promoters on formal notice that any project without an occupancy certificate as on May 1, 2017 must be mandatorily registered under the Act.
It stated that future non-compliance “shall attract appropriate penal consequences” in view of the settled legal position following Circular No. 607/2025/TGRERA and G.O.Ms. No. 60, both dated March 4, 2025.
The Authority said this clarification establishes a uniform legal standard for all future cases and urged promoters to ensure strict compliance.
