Kadthal Plot Refund Order: Why a DTCP Layout Still Needs TG RERA Registration
TG RERA's 14 October order directed BVR Infra Developers to refund Rs 10.95 lakh with 10.7 percent interest to two buyers of a plot in an unregistered Kadthal layout. What the order says, why layout permission and RERA registration differ, and a plot buyer's checklist.
Between August and December 2022, two buyers paid Rs 10.95 lakh in five cash instalments for Plot No. 28 in SV Golden City-III, an 85-plot layout at Kadthal in Rangareddy district. An agreement of sale followed only in February 2024. No sale deed was registered and no possession was handed over. On 14 October, the Telangana Real Estate Regulatory Authority ordered the developer, BVR Infra Developers, to return the full amount with interest.
The short answer. As reported by PropNewsTime and the Deccan Chronicle, TG RERA directed a refund of Rs 10.95 lakh with 10.7 percent annual interest, calculated from the date of each of the five payments until repayment, within 30 days of the order. The project held only tentative layout permission from the DTCP and was not registered with TG RERA, and the Authority directed its secretary to begin penalty proceedings under Section 59. The trade-off: the buyers get their money back with interest, but they do not get the plot, and any claim for compensation for hardship sits in a separate case before the adjudicating officer.
What did TG RERA order in the Kadthal plot case?
TG RERA ordered BVR Infra Developers to refund Rs 10.95 lakh to the two buyers, M Sheela and Padma Sreeramulu, with interest at 10.7 percent a year. According to the report, the interest runs separately from the date of each of the five payments until the amount is actually refunded, and the developer must comply within 30 days of receiving the order.
The bench of Laxmi Narayana Jannu and K Srinivasa Rao heard the matter ex parte after the developer failed to appear, the report says. The buyers were also given liberty to approach the adjudicating officer to seek compensation for mental agony, hardship and financial loss. The report adds that further action under Section 63 of the RERA Act could follow if the refund order is not complied with.
Does DTCP layout permission replace TG RERA registration?
No. A layout permission and a RERA registration answer different questions. The first is a planning approval for the land. The second is a consumer protection registration that has to be in place before a promoter markets the plots.
Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, in the Gazette text hosted by TG RERA, says no promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building in any real estate project or part of it, in any planning area, without registering the project with the Real Estate Regulatory Authority. The Act's list of exemptions in Section 3(2) covers small projects, projects completed before the Act commenced, and certain renovation or redevelopment work. Holding a layout permission is not on that list.
The Kadthal order applied this directly. As reported, the Authority found that obtaining layout permission from the DTCP did not exempt the developer from registration, and that registration was required before advertising, marketing or accepting payments from buyers.
Which plot projects are exempt from RERA registration?
Under Section 3(2)(a) of the Act, registration is not required where the area of land proposed to be developed does not exceed 500 square metres or the number of apartments proposed does not exceed eight, inclusive of all phases. The same clause lets the appropriate Government reduce that threshold.
The other exemptions are for projects that received a completion certificate before the Act commenced, and for renovation, repair or redevelopment that does not involve marketing, advertising, selling or new allotment. An 85-plot layout sold to the public sits well outside these categories, which is why registration was the starting point of the case.
The Act also treats each phase as its own project. The explanation to Section 3 says that where a project is developed in phases, every phase shall be considered a standalone real estate project and registered separately. So a buyer looking at "Phase III" of a layout should look for a registration that covers Phase III, not one issued for an earlier phase.
| Check | What it tells you | What the Kadthal case showed |
|---|---|---|
| DTCP layout permission | A planning approval for the layout | The project held only tentative layout permission |
| TG RERA registration | The project may be marketed and sold under RERA rules | The project was not registered, so Section 59 proceedings were directed |
| Agreement for sale | Your written terms, required before large advances | Signed in February 2024, after payments in 2022 |
| Payment trail | Proof of what you paid and when | Five cash instalments, each carrying interest from its own date |
| Sale deed and possession | Ownership and control of the plot | Neither was delivered, leading to the refund order |
Why does the timing of your agreement for sale matter?
Because the RERA Act limits how much a promoter can collect before a written, registered agreement exists. Section 13(1) says a promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot or building as an advance payment or an application fee without first entering into a written agreement for sale and registering it under any law for the time being in force.
In the Kadthal case, the full Rs 10.95 lakh was paid across 2022 and the agreement of sale came in February 2024, according to the report. That sequence left the buyers with receipts but no registered agreement setting out the project details, dates and obligations for more than a year.
For a buyer, the practical rule is simple. Before your payments cross ten per cent of the plot price, ask for the agreement for sale in the prescribed form and its registration. If the seller asks for more money first, treat that as a warning, not a formality.
What penalties can a developer face for selling without registration?
Section 59(1) of the Act says a promoter who contravenes Section 3 is liable to a penalty which may extend up to ten per cent of the estimated cost of the real estate project as determined by the Authority. Under Section 59(2), continued violation or non-compliance with those orders can lead to imprisonment for up to three years, or a further fine of up to ten per cent of the estimated project cost, or both.
Separately, Section 63 says a promoter who fails to comply with the Authority's orders is liable to a penalty for every day of default, which may cumulatively extend up to five per cent of the estimated cost of the project. Your own refund and interest come from the order in your complaint.
Penalty proceedings matter to buyers for a different reason. They signal that the regulator treats unregistered selling as a violation in itself, which is useful background if you are deciding whether to wait for a promised registration or walk away.
How should you check a plot layout in Hyderabad before paying?
Check the TG RERA registration first, then the layout approval, then the paperwork for your specific plot. Our earlier guide on unapproved plots in Hyderabad explains the approval side; this checklist adds the lessons from the Kadthal order.
- Search the TG RERA portal for the project name and confirm the registration covers the exact phase you are buying.
- Ask for the layout approval and check whether it is final or tentative, and which authority issued it.
- Match the plot number and layout name on the approval with the brochure and the booking form.
- Pay by bank transfer or cheque, not cash, so every instalment has a clear record.
- Ask for a registered agreement for sale before your payments cross ten per cent of the plot price.
- Get written dates for sale deed registration and possession in the agreement.
- Keep every receipt, message and advertisement, since a complaint is built on these documents.
If you are looking at plots along the southern corridor, our plot guide for Tukkuguda and Kadthal covers the area context. The registration check above applies regardless of location.
What can you do if you have already paid for an unregistered plot?
You can file a complaint with TG RERA. Section 31(1) of the Act says any aggrieved person may file a complaint with the Authority or the adjudicating officer for any violation or contravention of the Act or the rules and regulations against any promoter, allottee or real estate agent.
Where possession is not delivered, Section 18(1) of the Act makes the promoter liable on demand to return the amount received with interest at the prescribed rate, including compensation, if the allottee wishes to withdraw. The Kadthal buyers chose a refund with interest. Compensation claims are adjudged by an adjudicating officer, who under Section 71(1) is a judicial officer who is or has been a District Judge.
Gather your payment proofs, the agreement, any brochure or advertisement and your messages with the seller. The Kadthal order calculated interest from each payment date, so a clear record of when each instalment was paid directly affects what you recover.
Frequently asked questions
How much did TG RERA order BVR Infra Developers to refund?
As reported by PropNewsTime, TG RERA ordered BVR Infra Developers to refund Rs 10.95 lakh to two buyers of Plot No. 28 in SV Golden City-III at Kadthal, with 10.7 percent annual interest calculated from the date of each of five payments until repayment, within 30 days of receiving the order.
Is DTCP layout permission enough to sell plots without RERA registration?
Section 3(1) of the RERA Act bars a promoter from advertising, marketing, booking or selling plots in a real estate project in a planning area without registering it. In the Kadthal order, the project held only tentative DTCP layout permission, and TG RERA directed penalty proceedings under Section 59 for selling it unregistered, as reported.
Can a developer take full payment before signing an agreement for sale?
Section 13(1) of the RERA Act says a promoter shall not accept more than ten per cent of the cost of a plot, apartment or building as an advance or application fee without first entering into a written agreement for sale and registering it. In the Kadthal case, payments preceded the agreement.
What penalty applies for selling an unregistered project?
Under Section 59(1) of the RERA Act, a promoter who contravenes Section 3 is liable to a penalty of up to ten per cent of the estimated project cost. Continued violation can bring imprisonment of up to three years, a further fine of up to ten per cent, or both, under Section 59(2).
Last updated 2026-10-22. PropNewz Team.
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