The Telangana Real Estate Regulatory Authority (TG-RERA) has imposed a penalty of ₹20,05,200 on the promoters of the Golden County project at Rampally Dayara in Medchal-Malkajgiri district for violations of the Real Estate (Regulation and Development) Act, 2016.
In its 34-page order dated November 10, 2026, in Complaint No. 245 of 2025, the Authority held M/s Modi Shelters Pvt. Ltd., M/s Modi Builders & Infrastructures Pvt. Ltd. and their Managing Director, Sourabh Satish Modi, liable for violations of Sections 3 and 4 of the Act. The respondents have been directed to pay the penalty within 30 days.
The order was passed by TG-RERA Members Sri Laxmi Narayana Jannu and Sri K. Srinivasa Rao on a complaint filed by Mohammed Usman and other villa owners, along with M/s Golden County Phase-I Villa Owners Maintenance Mutually Aided Cooperative Society Ltd.
Marketing as luxury villa township questioned
A key issue before the Authority was the difference between the project’s statutory approvals and its promotional representations.
The Authority observed that the Hyderabad Metropolitan Development Authority (HMDA) had approved the development as a plotted layout and that its TG-RERA registration, No. P02200000242, was also for a plotted development project.
However, the developers marketed it under the title “Golden County Luxury Villas”, with brochures depicting a gated villa community featuring constructed villas, a clubhouse, gymnasium, swimming pool, sports facilities and landscaped parks.
The Authority noted that the promotional material did not adequately disclose the project’s statutory status as a plotted development. It also examined the developers’ arrangement of separate agreements for the purchase of plots and construction of villas.
Rejecting the defence that the contractual documents disclosed the arrangement, TG-RERA held that disclosures made to individual buyers could not substitute the statutory requirement to register the project in accordance with the nature of development actually advertised and marketed.
It concluded that the marketing and registration discrepancies attracted penalties under Sections 59 and 60 of the Act for violations of Sections 3 and 4, respectively.
Amenities to be completed within 90 days
The homeowners had raised concerns over incomplete or inadequate common facilities, including parks, sports amenities, clubhouse infrastructure and stormwater drainage.
The developers maintained that the amenities had been completed and were operational. However, the Authority held that the promoters were responsible for delivering the facilities promised in the brochure, agreements and sanctioned layout plan.
It directed them to complete all promised common amenities within 90 days from the date of receipt of the order.
Clubhouse and common areas to be handed over
TG-RERA also directed the promoters to hand over the clubhouse and all common areas to the Association of Allottees within 30 days from receipt of the order, in accordance with Section 17 of the Act.
The direction follows the developers’ submission that the clubhouse was constructed and operational and that an association of allottees had been formed.
Occupancy certificates for Phase-I villas
On the issue of Occupancy Certificates, the Authority directed the developers to take necessary steps to facilitate and obtain Occupancy Certificates or equivalent statutory completion documents from the competent local authority for all Phase-I villas where possession had already been handed over.
The direction is to be complied with within 90 days from receipt of the order, or within any further time permitted by the competent authority.
Maintenance responsibilities and dues
The order also addressed the dispute over maintenance of the project and payment of maintenance charges.
Referring to Section 11(4)(d), TG-RERA observed that the promoter is responsible for maintaining essential services until the Association of Allottees takes over the project’s maintenance. At the same time, it referred to Section 19(6), which requires allottees to pay their proportionate maintenance charges.
The developers were directed to maintain the society, including common areas and essential services, until formal handover. Residents were also directed to clear legitimate pending maintenance dues.
The promoters must formally transfer maintenance and management responsibilities to M/s Golden County Phase-I Villa Owners Maintenance Mutually Aided Cooperative Society Ltd., along with a transparent settlement of accounts.
Compensation and interest claims left open
On the homeowners’ demand for compensation for alleged misrepresentation and hardship, the Authority clarified that such claims fall within the jurisdiction of the Adjudicating Officer under Section 71 of the Act. The complainants were given liberty to approach the officer.
Regarding the demand for 18 per cent annual interest on amounts collected towards amenities, TG-RERA observed that the claims were individual in nature and depended on the payments made and their respective dates. Individual complainants may therefore file separate complaints with supporting payment details. No decision on the merits of these claims was made in the present proceedings.
Non-compliance may invite further action
The total penalty of ₹20,05,200 is payable to TG-RERA within 30 days. The Authority warned that failure to comply with its directions could attract further penal action under Section 63 of the Act.
The complaint was disposed of without any order as to costs.
The order highlights the statutory responsibility of real estate promoters to ensure that project approvals, RERA registration and marketing representations are consistent, while also reiterating their obligations regarding promised amenities, maintenance and transfer of common areas to residents’ associations.
