In a significant ruling aimed at protecting homebuyer rights, the Telangana Real Estate Regulatory Authority (TG-RERA) has directed Prime Infratech, promoter of the Prime Alpenia villa project in Mokila, to initiate and complete the registration of an association of allottees within 45 days.
The directive, dated June 4, 2025, follows a complaint from Budi Venkata Ramana, a villa owner, who alleged harassment and unlawful collection of maintenance charges in the absence of a registered society.
Background of the Complaint
Ramana purchased a villa in December 2021 and paid ₹3,41,000 towards corpus and maintenance in February 2022. However, the promoter failed to register the Villa Owners’ Association as promised. Though the villa remained unoccupied until April 2024 and was rented from May 1, Ramana was asked to pay maintenance based on oral assurances. He eventually issued a legal notice in March 2024, stating he would only remit dues to a legally recognised body. Despite this, he claimed he was forced to pay ₹76,725, and alleged threats of disconnection of utilities to both himself and his tenant.
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TG-RERA’s Observations
The Authority held that Prime Infratech violated Section 11(4)(e) of the Real Estate (Regulation and Development) Act, 2016, which mandates promoters to enable the formation of an association or society of allottees. It rejected the promoter’s argument that a voluntary group of residents managing the premises nullified this obligation.
TG-RERA stressed that:
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The duty to form a registered association is a legal obligation, not a discretionary step.
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Handing over of common areas and facilitating governance is essential to protecting buyer interests.
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Claims by informal resident groups are outside TG-RERA’s jurisdiction and should be resolved by the Telangana Co-operative Department, which the complainant had already approached in October 2024.
Important Legal Clarifications
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TG-RERA reaffirmed that promoters must register associations and cannot delegate maintenance responsibilities to unregistered groups.
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It also held that buyers are legally bound to pay maintenance charges under Section 19(6) of the RERA Act, even if the unit is unoccupied, as liability begins from the date of possession.
Consequences of Non-Compliance
TG-RERA warned Prime Infratech that failure to register the association within 45 days could result in regulatory action under Section 63, which allows for the imposition of penalties for continuing contraventions of the Act.