The Telangana Real Estate Regulatory Authority (RERA) has imposed a fine of ₹17.9 lakh on Sterling Homes Private Limited for delays in completing the Sterling Orchids Phase I residential project in Mallampet Village, Medchal-Malkajgiri District. The project, initially scheduled for completion by July 1, 2023, including a grace period until December 2023, failed to meet the deadlines, prompting RERA to issue directives for its completion.
Complaints by Homebuyers
The penalty followed complaints filed by homebuyers, including Allam Nagaraju and S. Arun Kumar, citing multiple grievances:
- Deviations from the Approved Plan: Allegations included altering the clubhouse structure and relocating the Sewage Treatment Plant (STP) without prior notice.
- Absence of Promised Facilities: A compound wall separating Phase I from the adjacent Phase II development was reportedly missing.
- Undisclosed Shared Amenities: Buyers claimed that shared amenities between Phase I and Phase II were not disclosed during the sale process.
- Phase II Construction Prioritization: The developer allegedly commenced Phase II construction before completing Phase I, impacting the rights of Phase I buyers.
Developer’s Defense
In its defense, Sterling Homes attributed the delays to external factors, such as:
- Regulatory challenges,
- Heavy rains,
- Labour shortages, and
- Pandemic-related disruptions.
The developer stated that deviations from the sanctioned plan were minor and necessary for structural integrity, with approvals obtained from relevant authorities. Sterling Homes also claimed that pending dues from buyers caused financial constraints, further delaying the project’s completion.
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RERA’s Verdict
RERA dismissed the developer’s justifications and issued a series of directives:
- Complete the Pending Work: Sterling Homes must complete the project, including all promised amenities, within 90 days from November 14, 2024.
- Adhere to Approved Plans: The developer was instructed to strictly comply with the sanctioned construction plan.
- Compensate Buyers: Sterling Homes must pay 10.95% annual interest on amounts already paid by buyers, calculated from the due date of possession. The interest will be paid in instalments to ensure project progress.
- Buyers’ Obligations: Complainants were directed to clear any pending sale consideration amounts within 45 days to facilitate the project’s completion.
Conclusion
The Telangana RERA ruling highlights the regulatory body’s commitment to protecting homebuyers’ rights and ensuring timely delivery of real estate projects. By enforcing penalties and monitoring compliance, RERA aims to maintain transparency and accountability in the sector.
