Telangana Homebuyers Take Charge to Complete Stalled Residential Projects
In a pioneering initiative within Telangana, authorities have empowered homebuyers to finalize stalled residential developments following builder defaults, by leveraging provisions of the Real Estate (Regulation and Development) Act, 2016. This groundbreaking approach marks a significant shift in protecting consumer interests in the real estate sector.
Regulatory Intervention and Resident Action
Acting on directives from the Telangana Real Estate Regulatory Authority (TG RERA) and the municipal administration department, flat owners have organized into associations to oversee the completion of remaining construction works. One project has already been successfully finished, while another is currently in progress, demonstrating the effectiveness of this collaborative model.
The stalled projects were originally undertaken by Jayathri Infrastructures India Private Ltd. The company had launched the Jaya Platinum residential project at Bowrampet village in Dundigal municipality, comprising 60 flats. Additionally, it initiated the Jaya Diamond project at Bachupally with 83 flats, which also halted in 2022. For Jaya Diamond, only approximately 6% of construction had been completed before the stoppage.
Case Study: Jaya Platinum Project
Construction on Jaya Platinum ceased in June 2022 after about 66% of the work was done. After multiple deadlines passed without advancement, flat purchasers sought intervention from TG RERA. Following an inspection by the Engineering Staff College of India (ESCI), which confirmed the construction stall, RERA took action against the builder.
The authority imposed a penalty of Rs 2.36 crore for various violations and revoked the project registration in April 2024. However, flat owners who had already paid between 70% and 80% of the total cost approached the authority again, requesting assistance to revive the project. The government also directed the registration department to refrain from registering any flats by the builder and instructed authorities to revoke permissions issued by the GHMC and HMDA.
As per Section 8 of the RERA Act, after revocation of the project, the authority may consult the state government to carry out the remaining development work through a competent authority or by the association of allottees, or in any manner. Since the flat owners desired to complete the remaining works by forming an association, the authority recommended this to the government. Chief Minister A Revanth Reddy, who also serves as the municipal administration minister, approved the proposal to finish the remaining 34% of the work.
Flat owners established the JP Welfare Association and successfully completed the project. "When the work stopped, we were all worried. TG RERA and the state government helped to form an association and complete the work. Recently, we obtained the occupancy certificate from the HMDA, and we are planning a significant function upon project completion," stated Anil Kumar Vanteru of the association.
Expansion to Jaya Diamond Project
Inspired by the success of Jaya Platinum, buyers in the Jaya Diamond project approached TG RERA approximately two years ago seeking similar assistance. In this instance as well, the authority secured a technical report from ESCI and informed the government about the project's status. Section 8 of the Act was once again invoked to safeguard the interests of allottees and enable completion through an association under regulatory monitoring.
"After securing all approvals from the municipal administration department with RERA's assistance, we conducted a bhoomi puja for the work a few days ago," remarked Alladi Narasimha Rao of the Jaya Diamond Welfare Association.
Broader Implications and Official Statements
Officials highlighted that this intervention has revitalized stalled projects, safeguarding the investments of hundreds of homebuyers. They indicated that the government would sympathetically consider reviving similar projects after taking action against errant builders and developers.
TG RERA Chairman N Satyanarayana emphasized, "TG RERA reiterates its commitment to strict implementation of the Real Estate (Regulation and Development) Act, 2016, and assures homebuyers that decisive action will continue to be taken against defaulting promoters while facilitating lawful completion of projects in the larger public interest."
This initiative not only provides a practical solution for affected homebuyers but also sets a precedent for other states to emulate, reinforcing the protective framework of the RERA Act across India's real estate landscape.
