Real estate projects in India often witness a familiar pattern where overambitious promoters collect substantial funds, promise timely delivery of residential units, and later leave homebuyers stranded due to prolonged delays or abandonment. However, a first-of-its-kind intervention by the Telangana Real Estate Regulatory Authority (TG-RERA) has demonstrated how the Real Estate (Regulation and Development) Act, 2016 (RERA) can be effectively used as a powerful tool to protect homebuyers.
In a landmark case from Bowrampet, Dundigal Municipality, Medchal–Malkajgiri district, an Association of Allottees successfully completed a stalled apartment project, fulfilling the long-pending dreams of homeowners after decisive regulatory action.
Background of the Jaya Platinum Project
The project, Jaya Platinum, was promoted by Jayathri Infrastructures India Pvt. Ltd. and was sanctioned for 60 residential units on a land parcel measuring 2,731.78 square yards, with approvals from the Hyderabad Metropolitan Development Authority (HMDA) and the local municipality.
While 51 units were sold and 49 were registered in buyers’ names, the developer allegedly failed to complete the project, abandoning construction after achieving only partial progress. No valid explanation was provided for the prolonged delay, leaving the allottees in financial and emotional distress.
Formation of Association of Allottees and RERA Complaint
Left with no alternative, the affected buyers formed an Association of Allottees and approached TG-RERA, invoking their rights under the RERA Act. Acting on the complaint, the authority initiated proceedings against the developer for serious violations, including:
Failure to complete the project
Financial mismanagement and fund diversion
Discrepancies in estimated project cost
Misleading assurances to buyers
Non-submission of mandatory quarterly reports
Violation of RERA regulations
Independent Assessment and Findings
TG-RERA ordered an independent technical assessment by the Engineering Staff College of India (ESCI). The inspection report revealed that only 66% of the construction work was completed, and the project had been stalled since June 2022.
The assessment further concluded that the project would require approximately 12 months to complete, subject to uninterrupted cash flow and systematic execution.
Revocation of Developer Registration Under Section 7
Based on the findings, TG-RERA initiated action under Section 7 of the TG RERA Act and revoked the project registration on April 30, 2024, declaring the promoter a defaulter. This marked a critical turning point in the case.
Subsequently, invoking Section 8 of the TG RERA Act, and after due consultation with the government, TG-RERA handed over the incomplete project to the Association of Allottees for completion.
Allottees Complete Project Under Regulatory Supervision
TG-RERA issued an interim order permitting the allottees to complete the project within eight months, with an additional six-month grace period. A monitoring committee, comprising government officials, representatives from real estate associations, and allottees, was constituted to oversee construction progress and ensure compliance.
As a result of this structured intervention, the project was completed, and occupancy certificates were issued on January 5, marking a historic achievement for homebuyer-led project completion in Telangana.
Liability of Original Developer Remains Intact
TG-RERA Secretary D. Srinivas Reddy clarified that although the project was completed by the allottees, the original developer remains liable for all prior financial obligations, including:
Outstanding loans
Government dues
Payments to contractors and suppliers
Additionally, the developer was directed to pay Rs 3.5 lakh towards expenses incurred by TG-RERA for conducting a forensic audit.
Significance for Homebuyers Across India
This case stands as a game-changing precedent, proving that RERA provisions can empower homebuyers when enforced decisively. It highlights how Sections 7 and 8 of the RERA Act can be used to rescue stalled projects, restore buyer confidence, and ensure accountability in the real estate sector.
