RERA provisions prove gamechanger: TG-RERA helps flat buyers finish project left incomplete by developer
Jaya Platinum project in Bowrampet receives OC
Hyderabad: Real estate ventures in which overambitious promoters collect huge money, promise residential units by a certain date, but make the allottees run after them for years together due to non-completion of the units are common. But, certain provisions in the Real Estate (Regulation and Development) Act, 2016 (RERA), if put to proper use, can be a game changer, as is evidenced by a first-of-its-kind case in Telangana’s real estate sector. In this exemplary case, an association of allottees of a real estate venture finished the construction of an apartment project that was practically abandoned by the developer after completing around 60 per cent of the works and fulfilled their dream of stepping into their own houses, following effective intervention and hand-holding by the Telangana Real Estate Regulation Authority (TG-RERA).
The allottees of Jaya Platinum, a residential apartment project at Bowrampet in the Dundigal Municipality under the Medchal Malkajgiri district, were left in the lurch by the developer Jayathri Infrastructures India Pvt. Ltd, who allegedly failed to complete the project.
According to the TG-RERA officials, the original plan included 60 residential units on 2731.78 sq. yards, with a sanctioned plan approved by the Hyderabad Metropolitan Development Authority and the local municipality. Although 51 of the 60 units were sold and 49 of them registered in the names of buyers, the company did not complete the whole project. Nor did it specify the reasons for the protracted delay.
The allottees left in the lurch then formed an association, ‘Association of Allottees’ and approached TG-RERA after the company failed to live up to its commitment. Acting on the complaint, the TG-RERA went after the developer who failed to explain project delay, financial bungling, discrepancies in estimated project cost, misleading promises, non-submission of quarterly reports, and violation of regulations.
The TG-RERA then ordered an assessment by the Engineering Staff College of India (ESCI), which, in its inspection report, revealed that only 66 per cent of the entire works were completed and that the project works stopped in June 2022. After evaluation and analysis of the whole situation, the agency found that it may take 12 more months from the date of resumption of works, provided there is uninterrupted cashflow.
A senior official said that the TG-RERA revoked the developer’s licence for ‘Jaya Platinum’ and gave an interim order granting the Association of Allottees permission to complete the project within eight months, with an additional six-month grace period. A monitoring committee of government representatives, real estate associations, and allottees was entrusted with the task of overseeing the project’s execution and progress.
TG-RERA Secretary D Srinivas Reddy told ‘The Hans India’ that this was the first of its kind case. He said that after the developer failed to develop the project in time, the authority initiated proceedings under Section 7 of the TG RERA Act and revoked the project registration on April 30, 2024, declaring the promoter a defaulter. Further, under Section 8 of the TG RERA Act, after consultation with the government, the incomplete project was given to the Association of the Allottees for completion. That done, the allottees were given occupancy certificates on January 5.
The official said that the original developer will remain liable for all previous financial obligations, including loans, government dues, and payments to suppliers and contractors. The company was asked to pay Rs 3.5 lakh to TG-RERA for expenses incurred during a forensic audit.
