HYDERABAD: In a pioneering initiative in Telangana, authorities have permitted homebuyers to take over and complete stalled residential projects when builders default, leveraging the Real Estate (Regulation and Development) Act, 2016.
Following directives from the Telangana Real Estate Regulatory Authority (TG RERA) and the municipal administration department, flat owners formed associations to finish the remaining construction in their projects. One project has already been completed, while another is in progress.
The halted projects were initiated by Jayathri Infrastructures India Private Ltd., which had launched the ‘Jaya Platinum’ residential project in Bowrampet village, comprising 60 flats. Simultaneously, it had started the ‘Jaya Diamond’ project in Bachupally, which included 83 flats and came to a standstill in 2022; only about 6% of the construction had been completed for Jaya Diamond.
Construction on Jaya Platinum ceased in June 2022 after roughly 66% completion. As delays continued, buyers approached TG RERA for assistance.
After an inspection by the Engineering Staff College of India (ESCI) confirmed the halt in construction, RERA took action against the builder, imposing a penalty of Rs 2.36 crore for numerous violations and revoking the project’s registration in April 2024.
However, flat owners who had already paid between 70% to 80% of the total project cost sought further aid to reinstate the project. The government instructed the registration department not to register any flats by the builder and called for the revocation of permissions issued by the GHMC and HMDA.
“As per Section 8 of the RERA Act, once a project’s registration is revoked, the authority may consult with the state government to complete the remaining development work either through a competent authority or through the association of allottees,” stated TG RERA chairman N Satyanarayana to TOI. The flat owners expressed their desire to form an association for this purpose, and the Chief Minister, A Revanth Reddy, who is also the municipal administration minister, approved the proposal to complete the final 34% of the work.
Members of the JP Welfare Association successfully completed the project. “Initially, we were apprehensive when work halted. Thanks to TG RERA and the state government, we formed an association and resumed construction. We’ve recently received our occupancy certificate from the HMDA, and we’re planning a grand event to celebrate the project’s completion,” said Anil Kumar Vanteru from the association.
Buoyed by the success of Jaya Platinum, buyers of the Jaya Diamond project approached TG RERA for similar assistance about two years ago. In this case as well, the authority sought a technical report from ESCI, keeping the government informed about the project’s status. Section 8 of the Act was again invoked to ensure the allottees’ interests were safeguarded, allowing completion under regulatory supervision.
“With the help of RERA, we recently conducted the bhoomi puja for our project after securing all necessary approvals from the municipal administration department,” shared Alladi Narasimha Rao of the Jaya Diamond Welfare Association.
Officials indicated that this intervention successfully revived stalled projects, thereby protecting hundreds of homebuyers’ investments. They emphasized that the government will consider similar cases sympathetically while taking action against negligent builders and developers.
Satyanarayana reiterated, “TG RERA is committed to the rigorous enforcement of the Real Estate (Regulation and Development) Act, 2016, and assures homebuyers that firm action will be taken against defaulting promoters while facilitating the lawful completion of projects in the public interest.”
