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Telangana RERA allows homebuyers to complete stalled housing projects

#Law & Policy#Infrastructure#India#Telangana
Last Updated : 12th Mar, 2026
Synopsis

Telangana's real estate regulator has empowered homebuyers to take control of stalled housing projects after developers defaulted, ensuring work can be completed under official supervision. In two Jayathri Infrastructures projects, flat owners formed associations with regulatory backing to resume construction, secure municipal approvals, and obtain occupancy certificates. One project is now complete, while work has restarted on the other. Alongside penalties and cancellation of builder registrations, this action highlights RERA's proactive role in safeguarding investments, enabling buyers to complete stalled projects, and setting a precedent for similar interventions in the state.

Telangana's real estate regulator has enabled homebuyers to take over and complete residential projects that were stalled due to developer defaults under the Real Estate (Regulation and Development) Act, 2016. Acting on guidance from the Telangana Real Estate Regulatory Authority (TG RERA) and municipal authorities, flat owners formed associations to resume work in two halted projects by Jayathri Infrastructures India Pvt Ltd.


In the Bowrampet village project in Hyderabad's Dundigal area, approximately 66% of a 60-flat development had been completed before construction stopped in mid 2022. After RERA's inspection, which confirmed the halt, the authority imposed a penalty of INR 2.36 crore on the builder, cancelled its registration, and revoked all municipal permissions. Most buyers had already paid 70-80% of the total cost. They were allowed to form the JP Welfare Association, which successfully completed construction and obtained an occupancy certificate from the Hyderabad Metropolitan Development Authority (HMDA).

Similarly, the 'Jaya Diamond' project in Bachupally had seen only about 6% construction before work was stalled. With RERA's support and required municipal approvals, buyers formed an association to restart construction. Authorities now oversee the project to ensure lawful and timely completion.

Officials highlighted that such interventions protect homebuyers' investments and reinforce the regulator's commitment to enforcing rules while helping buyers achieve possession. RERA has previously acted against other defaulters by cancelling registrations, imposing fines, and ordering refunds with interest, reflecting its consistent approach to protecting buyer interests in Telangana's real estate sector.

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