Suo motu order on M/s Arakala Realty Infra

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
SUO MOTU CASE NO. 3033/2025
Date:23rd February 2026
Quoram:

Dr. N. Satyanarayana, IAS (Retd.), Hon'ble Chairperson
Sri K. Srinivasa Rao, Hon'ble Member
Sri Laxmi Narayana Jannu, Hon'ble Member

M/s ARKALA Realty Infra
Represented by Sri Praneeth Reddy and Prudvi Reddy,
H.No.8-4-17/SR/01,
Kamala Rainbow, Sairam Nagar Colony,
Champapet, Hyderabad 500079.

…PROMOTER/RESPONDENT

ORDER
The present Suo Motu proceedings have been initiated by the Telangana Real Estate
Regulatory Authority (hereinafter referred to as “the Authority”), in exercise of the powers
conferred under Section 35(1) of the Real Estate (Regulation and Development) Act, 2016
(hereinafter referred to as “the RE(R&D) Act, 2016”), upon receiving information through
social media advertisements, wherein it was brought to the notice of this Authority that M/s
ARKALA Realty Infrastructure Pvt. Ltd., represented by its Managing Director Sri Arakala
Praneeth Reddy and Director Sri Arakala Prudvi Reddy (hereinafter referred to as “the
Respondent”), had been advertising and promoting an upcoming residential villa project
proposed to be launched at Tukkuguda, near ORR Exit-14, Hyderabad, without obtaining
mandatory registration under the RE(R&D) Act, 2016.
2.

The information available with this Authority discloses that the Respondent was

advertising and publicising the said upcoming villa project through social media platforms and
its official website, thereby inviting public attention and interest. The promotional material
indicated the development of residential villas with amenities and invited prospective
purchasers to register their interest and visit the project site, which clearly demonstrated
advertisement and promotion of the said upcoming project.
3.

Based on the information and documentary material available on record, this Authority

conducted preliminary verification and ascertained that no real estate project at the aforesaid
location was registered with TG-RERA, as required under Sections 3(1) and 4(1) of the
RE(R&D) Act, 2016. It was further confirmed from the records of this Authority that no
application for registration of the said project had been received.
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Accordingly, this Authority issued a Show Cause Notice in Suo Motu Case No.

D6/3033/2025/TG-RERA dated 31.07.2025 to the Respondent, calling upon them to explain
as to why penal proceedings under Sections 59 and 60 of the RE(R&D) Act, 2016, should not
be initiated for advertising and promotion of an unregistered real estate project without
obtaining mandatory registration under the RE(R&D) Act, 2016.
5.

In response to the Show Cause Notice, the Respondent, submitted a written reply dated

25.08.2025, wherein it is submitted that the social media post referred to in the Show Cause
Notice was only a general announcement indicating that the Respondent was “coming up with
a project” at Tukkuguda, near ORR Exit-14, Hyderabad, and that the said post was made only
to indicate future intent and to gauge market interest. It is further submitted that the Respondent
has not advertised, marketed, booked, sold, or offered for sale any plots or villas in the said
project, that no sale agreements have been executed, and that no advances or payments have
been received from any prospective purchasers. It is also submitted that the said post did not
contain any offer for sale or invitation to purchase and therefore does not fall within the purview
of prohibited activities under Section 3(1) of the RE(R&D) Act, 2016.
6.

The Respondent further submitted that upon receipt of the Show Cause Notice and in

light of the concerns raised by this Authority, the Respondent immediately sought legal advice
and, based on such advice, removed the said post from its social media platform to ensure
compliance with the provisions of the RE(R&D) Act, 2016. It is submitted that the Respondent
is a law-abiding real estate company and has always endeavoured to comply with the letter and
spirit of the RE(R&D) Act, 2016. It is further submitted that the Respondent’s ongoing projects
are duly registered with this Authority and that the Respondent undertakes to ensure that all
future projects are registered with TG-RERA prior to undertaking any form of advertisement,
marketing, or sale. The Respondent, therefore, requested this Authority to consider the
explanation furnished and to close the Suo Motu proceedings.
OBSERVATIONS OF THE AUTHORITY:
7.

Upon examination of the material available on record, including the social media

advertisements placed by the Respondent, the promotional brochure and material available on
record, and the reply furnished by the Respondent dated 25.08.2025, this Authority notes that
the Respondent had engaged in advertising and promotion of an upcoming residential villa

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This Authority observes that in the reply dated 25.08.2025, the Respondent contended

that the social media post was merely a general announcement of future intent and that no
advertising, marketing, booking, or sale activities had been undertaken. However, this
explanation stands contradicted by the documentary material available on record. The
promotional content and brochure issued by the Respondent clearly project the development as
a residential villa project spread over a substantial extent, with specific amenities, and invite
prospective purchasers to register their interest and visit the project site for booking units. The
Respondent has neither disputed the issuance of the said promotional material nor furnished
any plausible explanation as to how such material does not amount to advertisement. In the
absence of any rebuttal or material to the contrary, the Respondent’s contention that no
promotional activity was undertaken cannot be accepted.
9.

This Authority notes that the act of issuing promotional material through social media

platforms and inviting public interest in a proposed real estate development squarely amounts
to advertising and promotion within the meaning of Section 3(1) read with Section 2(b) of the
RE(R&D) Act, 2016. Such activity, even if characterised by the Respondent as a preliminary
announcement or market survey, falls within the scope of prohibited acts under Section 3(1) of
the RE(R&D) Act, 2016.
10.

This Authority further reiterates that the RE(R&D) Act, 2016, does not recognise or

permit any form of pre-launch advertising, promotion, or public representation of a real estate
project unless the project is duly registered with the Authority. In the present case, the
Respondent’s act of projecting the proposed development as an upcoming villa project and
inviting expressions of interest prior to obtaining registration approval constitutes a clear
instance of pre-launch promotion without registration, thereby placing the Respondent in direct
contravention of Section 3 of the RE(R&D) Act, 2016.
11.

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 from this
Authority, thereby contravening Section 3 of the RE(R&D) Act, 2016, and is consequently
liable for imposition of penalty under Section 59 of the RE(R&D) Act, 2016.
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In the light of the foregoing observations and findings, and in exercise of the powers

conferred under Sections 35, 37, and 38 of the RE(R&D) Act, 2016, this Authority hereby
issues the following directions:
a) For violation of Section 3 of the RE(R&D) Act, 2016, i.e., for undertaking pre-launch
advertising and promotion of a real estate project without obtaining mandatory
registration, the Promoter/Respondent, M/s ARKALA Realty Infrastructure Pvt. Ltd.,
represented by its Managing Director, Sri Arakala Praneeth Reddy and Director Sri
Arakala Prudvi Reddy, is held liable for penalty under Section 59 of the
RE(R&D) Act, 2016. Accordingly, a penalty of ₹22,41,525/- (Rupees Twenty-Two
Lakh Forty-One Thousand Five Hundred and Twenty-Five only) is hereby imposed on
the Promoter/Respondent, with a direction to remit the same within 30 days from the
date of receipt of this Order in favour of TGRERA FUND, through Demand Draft or
online payment to A/c No. 50100595798191, HDFC Bank, IFSC Code:
HDFC0007036.
b) The Promoter/Respondent is hereby restrained forthwith from advertising, marketing,
promoting, booking, selling, offering for sale, inviting persons to purchase, or
representing in any manner whatsoever, the real estate project proposed to be developed
at Tukkuguda, near ORR Exit-14, Hyderabad, until such time the said project is duly
registered with this Authority and full compliance with the provisions of the RE(R&D)
Act, 2016 and the rules and regulations made thereunder is ensured.
c) The Promoter/Respondent is hereby informed that failure to comply with the directions
issued herein shall attract further penal consequences under Section 63 of the RE(R&D)
Act, 2016.

Sd/Sri K. Srinivasa Rao,
Hon'ble Member,
TG RERA

Sd/Sri Laxmi Narayana Jannu,
Hon'ble Member,
TG RERA

Sd/Dr. N. Satyanarayana, IAS (Retd.),
Hon'ble Chairperson,
TG RERA

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