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Telangana RERA penalises builder for project violations and directs immediate corrective measures

#Law & Policy#India#Telangana
Synopsis

The Telangana Real Estate Regulatory Authority (TG RERA) has fined Maha Homes INR 6.58 lakh for marketing and selling villas in Isnapur, Patancheru, without registering the project. In addition to the penalty, TG RERA ordered the developer to form an association of allottees, hand over project documents, install fire safety systems, and address other issues, including contamination risks and incomplete amenities. The case highlights deviations from approved plans and failures in delivering promised facilities, underscoring the need for stricter enforcement of real estate regulations.

The Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of INR 6.58 lakh on Maha Homes, a developer accused of marketing and selling villas in Isnapur, Patancheru, without registering the project as required under the Real Estate (Regulation and Development) Act.


In its directive, TG RERA also instructed the developer to form an association of allottees, provide the necessary project documents for "Maha Homes-Muthyam," and install fire extinguishing systems without delay. These actions followed a complaint filed by Suresh Reddy and other buyers, who alleged multiple violations and shortcomings in the project. The buyers raised concerns over deviations from the approved plans sanctioned by the Hyderabad Metropolitan Development Authority (HMDA). They also claimed that the developer failed to deliver on promises, including providing a drinking water connection despite charging INR 45,000 for the service.

Although the developer had assured buyers of project completion by March 31, 2021, the project was not registered with TG RERA. While HMDA issued an occupancy certificate on April 11, 2022, the completion certificate remains pending. Health and safety risks further escalated frustrations among buyers. Complaints included contamination issues arising from the close proximity of the Muthyam block's water tank to the septic tank of the neighbouring Madhuram block. Buyers also highlighted the absence of fire safety measures, which led to a fire incident on the fifth floor, as well as a lack of rainwater harvesting systems on the terrace.

The developer, however, defended the construction, asserting that it adhered to HMDA permissions and argued that TG RERA registration was not mandatory when the project began in 2019. Delays were attributed to labour shortages and restrictions during the pandemic in 2021-22. The completion certificate, the developer claimed, was issued by the project architect. Upon reviewing the submissions, TG RERA concluded that the developer had violated Section 3 of the Real Estate (Regulation and Development) Act by marketing and selling the project without proper registration.

In addition to imposing the penalty, TG RERA instructed the developer to refund INR 13,175 to the association of allottees and construct a black-topped road within the premises. These measures aim to address the grievances of the homebuyers while ensuring the project complies with regulatory standards.

This case underscores the critical role of TG RERA in protecting homebuyers from unregistered and mismanaged projects. While Maha Homes attributed delays to the pandemic, the developer's failure to adhere to regulatory requirements and fulfil promises has left buyers grappling with safety risks and incomplete amenities. TG RERA's intervention brings hope for accountability, but the persistent challenges in real estate governance highlight the need for stronger enforcement mechanisms to ensure developers prioritise compliance and customer trust.

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