The Telangana Real Estate Regulatory Authority (TG RERA) has taken decisive action in two significant real estate disputes, signaling its intent to safeguard the interests of homebuyers and ensure compliance with the Real Estate (Regulation and Development) Act, 2016.
RERA Rejects Registration for Vazhraa Prathik Apartments Blocks G and H
In a significant setback for Vazhraa Nirmaan Private Limited, TG RERA has rejected the application for registering Blocks G and H of its Vazhraa Prathik Apartments Phase III project. The decision follows complaints from the residents’ association about the developer’s alleged attempt to retain private ownership over the project’s clubhouse, which RERA has classified as a common area.
Residents’ Complaint and Previous Orders
Earlier in March, the residents’ association of Vazhraa Prathik Apartments lodged a complaint with RERA, accusing the developer of constructing a compound wall that restricted residents’ access to the clubhouse. Following the complaint, RERA directed the builder to transfer ownership of the clubhouse to the association, in line with the RERA Act provisions that mandate all common areas and amenities be handed over to homebuyers.
Misleading Clause in Sale Agreements
Despite the regulatory order, Vazhraa Nirmaan’s application to register Blocks G and H included Clause 34 in its Agreement for Sale, which asserted the developer’s rights over portions of the clubhouse and allowed access to outsiders. The promoter defended this clause by citing a pending writ petition before the High Court, but RERA observed that the builder had not secured any stay or relief in the matter.
TG RERA member Srinivasa Rao emphasized:
“Once the project is completed, the developer has no right to hold on to common areas like the clubhouse. These amenities are meant for the residents and must be handed over to their association. Any attempt to retain or commercialise them goes against the RERA Act.”
Citing repeated non-compliance, insertion of misleading contractual clauses, and violations of approved plans, RERA rejected the builder’s registration application for Blocks G and H, effectively halting further sales in those towers unless compliance is ensured.
SAS 1 Infratech Ventures Faces RERA Scrutiny Amid Allegations of Financial Mismanagement
In a separate case, TG RERA has issued interim directions to SAS 1 Infratech Ventures Pvt. Ltd., following serious allegations of financial mismanagement, misuse of investor funds, and delays in completing their ongoing project.
Complaints from Investors’ Association and Landowner
Two complaints triggered the regulator’s intervention:
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A case filed by the SAS 1 Tower Investors Association, representing over 60% of homebuyers in the project.
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A suo motu action initiated by RERA based on concerns over significant delays and potential financial irregularities.
The investors’ association has demanded stringent action against the builder, alleging long delays in project delivery, raising fears of fund diversion.
Meanwhile, landowner Mohini Chawla has questioned the legal status of the investors’ association, alleging it may not be formally registered and therefore lacks the authority to represent buyers.
RERA’s Directions to Builder and Association
TG RERA has now instructed both the builder and the association to submit affidavits within seven days, clarifying:
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Whether the investors’ association is formally registered under RERA rules.
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The builder’s cooperation in facilitating the registration of such an association if it does not yet exist.
Once the association is legally registered, RERA plans to admit it as a party to the main proceedings, ensuring fair representation for all homebuyers.
These developments underline TG RERA’s active stance in protecting homebuyers’ rights, ensuring transparency, and curbing exploitative practices by real estate developers.
Significance for Homebuyers and Industry
These regulatory actions reflect a broader push by TG RERA to:
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Enforce the handover of common areas to residents, preventing commercial exploitation by developers.
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Demand financial accountability and protect buyer investments.
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Strengthen buyer associations as legitimate stakeholders in regulatory proceedings.
Buyers in Telangana—and across India—are increasingly aware of their rights under the RERA Act, and TG RERA’s proactive interventions serve as a clear warning to developers against non-compliance.
