Suo Motu Order on M/s Kapil Properties

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
SUO MOTU CASE NO. D6/647/2025
Date: 31st October 2025
Quorum:

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

M/s Kapil Properties
P.No.144, Survey 37, Financial District,
Nanakramguda, Gachibowli, Hyderabad,
Telangana-500032

...Promoter/Respondent

Kapil Kavuri Hub
Kapil Towers
Kapil Business Park

… Project Name(s)

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 “RE(R&D) Act, 2016”). The action arises with reference to the
advertisement published on the website 'kapilkavurihub.com'.
2.

It has come to the notice of this Authority that M/s Kapil Properties, through its official

websites, namely 'www.kapilkavurihub.com' and 'www.kavuribusinesspark.com', has been
engaged in the advertisement, marketing, and selling of commercial units in its real estate
projects titled 'Kapil Kavuri Hub' and 'Kapil Towers', both located at Nanakramguda,
Gachibowli, Hyderabad, without obtaining the requisite registration from this Authority,
thereby prima facie contravening the provisions of Sections 3(1) and 4(1) of the RE(R&D)Act,
2016.
3.

Upon consideration of the prima facie material available on the website which includes

the prospectus and broachers, this Authority issued a Show Cause Notice dated 11.03.2025
under Section 3(1) and Section 4(1) of the RE(R&D) Act, 2016 calling upon the Respondent,
who is a promoter, to explain why action should not be taken for facilitating the sale of flats in
an unregistered project.
4.

The Respondent, the Director of Dakshin Infrastructures Pvt. Ltd., a member of Kapil

Group, vide reply dated 22.03.2025, denied the allegations and contended that the projects in
question are not covered under the RE(R&D) Act, 2016. The Respondent submitted that the
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The Respondent has placed on record the following particulars for the consideration of

this Authority.:
Project Name

Building Permit Number

Occupancy Certificate
Issued On

Kapil Towers 07/ZM&Comm/IALA-NNK& RDG/BP/2011-12

10.03.2014

dated 09.03.2012
Kapil Kavuri

52583/HO/WZ/CIR-11/2016 dated 02.09.2016

01.02.2021

Hub

6.

The matter was taken up for hearing on 26.04.2025, during which the Respondent

appeared and submitted that they are in full compliance with the provisions of the RE(R&D)
Act, 2016. The Respondent further stated that they have duly adhered to the statutory
requirements prescribed under the RE(R&D) Act, 2016, in respect of their projects and, in
support of their bona fides, brought to the attention of this Authority another project promoted
by them which has been duly registered.
7.

The Respondent subsequently filed an additional reply dated 29.04.2025, wherein they

submitted that their project, Kapil Business Park, has been duly registered under Registration
No. P02400002352. They further stated that the RERA registration number of the said project
has been clearly displayed on their official website, in compliance with the requirements
pertaining to advertisement and public disclosure under the provisions of the RE(R&D) Act,
2016. The Respondent also affirmed their commitment to operate in accordance with the law
and assured the Authority that all necessary steps would be taken to ensure continued and
complete compliance with all applicable statutory provisions, rules, and regulations governing
real estate development and promotion.

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On perusal of the material on record and the information available with this Authority,

including the Occupancy Certificates produced, it is observed that the project “Kapil Towers”
was granted an Occupancy Certificate on 10.03.2014. Since the said certificate was issued prior
to the commencement of the Real Estate (Regulation and Development) Act, 2016, the project
falls outside the purview of the said Act and, therefore, does not attract the requirement of
registration under Section 3 thereof.
9.

With respect to the project “Kapil Kavuri Hub”, it is noted that the building permission

was granted on 02.09.2016, i.e., prior to the enforcement of the RE(R&D) Act, 2016, but the
Occupancy Certificate was obtained only on 01.02.2021, i.e., subsequent to 01.05.2017, the
date of commencement of the Act. In terms of Section 3(1) of the Act, any project which was
ongoing as on 01.05.2017 and which had not obtained a Completion or Occupancy Certificate
as on that date was required to be registered under the Act. However, the definition of “ongoing
project” under Rule 2(1)(j) of the Telangana Real Estate (Regulation and Development) Rules,
2017, as it then stood, led to interpretational ambiguity, as it described an ongoing project as
one for which building permission had been obtained after the commencement of
the RE(R&D) Act, 2016.
10.

In the circumstances, this Authority is of the considered view that the Respondent could

have reasonably and bona fide interpreted the said Rule to mean that projects which had
obtained building permission prior to 01.05.2017 did not require registration under the
RE(R&D) Act, 2016. The position was later clarified only through Circular No.
607/2025/TGRERA dated 04.03.2025 and the subsequent amendment to TG RE(R&D) Rule
2(1)(j) vide G.O.Ms. No. 60 dated 04.03.2025, which conclusively settled the scope of the term
“ongoing project.”
11.

In view of the above, the Respondent’s non-registration of the project “Kapil Kavuri

Hub” cannot be construed as a deliberate or wilful violation of the law, as it was based on a
reasonable interpretation of the Rules then in force. Considering that, this Authority holds that
no penalty is warranted under Sections 59 or 60 of the RE(R&D) Act, 2016, for the said nonregistration.
12.

Nevertheless, the Respondent and all other promoters are hereby placed on notice that,

in light of the amendment to Rule 2(1)(j) and the clarificatory Circular dated 04.03.2025, the
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Upon consideration of the submissions made by the Respondent during the hearing held

on 26.04.2025 and the additional reply dated 29.04.2025, this Authority notes that the
Respondent has demonstrated bona fide intent and due diligence in ensuring compliance with
the provisions of the RE(R&D) Act, 2016. The Respondent has furnished evidence showing
that the project “Kapil Business Park” has been duly registered under Registration No.
P02400002352, and that the requisite details have been displayed on its official website in
conformity with the disclosure and advertisement requirements prescribed under the
RE(R&D) Act, 2016. In view of the Respondent’s transparent conduct and adherence to the
statutory framework, this Authority finds no grounds to attribute wilful default or noncompliance. Hence, considering the foregoing observations, no further action is warranted
under the provisions of the RE(R&D) Act, 2016.
14.

Accordingly, the Suo motu case is closed.

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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