In this paper, an automatic approach for the generation and regularization of 3D roof boundaries in Airborne Laser scanner data is presented. The workflow is commenced by segmentation of the point clouds. A classification step and a rule based roof extraction step are followed the planar segmentation. Refinement on roof extraction is performed in order to minimize the effect due to urban vegetation. Boundary points of the connected roof planes are extracted and fitted series of straight line segments. Each line is then regularized with respect to the dominant building orientation. We introduce the usage of cycle graphs for the best use of topological information. Ridge-lines and step-edges are basically extracted to recognise correct topological relationships among the roof faces. Inner roof corners are geometrically fitted based on the closed cycle graphs. Outer boundary is reconstructed using the same concept but with the outer most cycle graph. In here, union of the sub cycles is taken. Intermediate line segments (outer bounds) are intersected to reconstruct the roof eave lines. Two test areas with two different point densities are tested with the developed approach. Performance analysis of the test results is provided to demonstrate the applicability of the method.