Real estate projects where overambitious promoters collect large sums, promise timely delivery, and later abandon construction are unfortunately common across India. Homebuyers are often left running from pillar to post for years, with neither possession nor refunds in sight. However, a first-of-its-kind case in Telangana has demonstrated how the Real Estate (Regulation and Development) Act, 2016 (RERA), when used effectively, can truly become a game changer for homebuyers.
In a remarkable development, an Association of Allottees successfully completed a stalled apartment project that had been virtually abandoned by the developer after 60% completion, with decisive intervention and structured hand-holding by the Telangana Real Estate Regulatory Authority (TG-RERA).
Project Background: Jaya Platinum, Bowrampet
The case relates to “Jaya Platinum”, a residential apartment project located at Bowrampet in Dundigal Municipality, Medchal–Malkajgiri district. The project was promoted by Jayathri Infrastructures India Pvt. Ltd, which allegedly failed to complete construction despite selling a majority of the units.
As per TG-RERA officials, the project consisted of 60 residential units spread over 2,731.78 square yards, with approvals from the Hyderabad Metropolitan Development Authority (HMDA) and the local municipal body. Out of these, 51 units were sold, and 49 were registered in favour of homebuyers. Despite this, the developer neither completed the project nor provided any credible justification for the prolonged delay.
Formation of Association of Allottees
Left with no alternative, the affected buyers formed an Association of Allottees and approached TG-RERA, invoking their statutory rights under RERA. Upon examination, the authority found serious lapses on the part of the promoter, including:
Failure to explain project delays
Financial irregularities and bungling
Discrepancies in declared project costs
Misleading assurances to buyers
Non-submission of mandatory quarterly reports
Multiple violations of RERA provisions
Independent Technical Assessment
TG-RERA ordered a detailed inspection by the Engineering Staff College of India (ESCI). The inspection report revealed that only 66% of the total construction work had been completed and that all construction activity had come to a halt in June 2022. ESCI concluded that the project could be completed within 12 months, provided uninterrupted cash flow was ensured.
Revocation of Registration and Transfer Under Sections 7 & 8
Following a comprehensive review, TG-RERA revoked the project registration of Jaya Platinum under Section 7 of the TG RERA Act on April 30, 2024, declaring the promoter a defaulter. Subsequently, exercising powers under Section 8, and after consultation with the State Government, TG-RERA handed over the incomplete project to the Association of Allottees for completion.
The authority granted eight months for completion, along with a six-month grace period, and constituted a monitoring committee comprising government officials, real estate associations, and representatives of the allottees to oversee execution and progress.
Occupancy Certificates and Continuing Liability of Developer
TG-RERA Secretary D. Srinivas Reddy confirmed that this was the first such case in Telangana where allottees completed an abandoned project under RERA supervision. Upon completion, occupancy certificates were issued on January 5, finally allowing buyers to move into their homes.
Importantly, TG-RERA clarified that the original developer remains liable for all past financial obligations, including bank loans, government dues, and payments to contractors and suppliers. The promoter was also directed to pay Rs. 3.5 lakh towards expenses incurred by TG-RERA for a forensic audit.
Why This Case Matters
This landmark case demonstrates that Sections 7 and 8 of RERA are powerful tools capable of rescuing stalled projects and protecting homebuyers. It sets a strong precedent for other states, proving that associations of allottees, with regulatory backing, can take control and complete abandoned projects, transforming despair into ownership.