RERA Transfers Stalled Bowrampet Housing Project to Buyers' Body

Hyderabad: In a significant move aimed at protecting flat buyers, the Telangana Real Estate Regulatory Authority (TG RERA) has transferred the construction responsibilities of a stalled apartment project in Bowrampet, under Dundigal Municipality of Medchal-Malkajgiri district, to the association of homebuyers.

The project, Jaya Platinum, was being developed by Jayathri Infrastructures. The company had collected money from around 60 buyers, promising to complete the construction and hand over the flats by December 2022. However, with no progress on the project even after the promised deadline, the buyers approached RERA seeking relief.

After examining the case, RERA initially issued interim orders in April this year, followed by full orders authorising the homebuyers’ association to take over and complete the pending construction work. The direction was issued under Section 8 of the RERA Act, which allows the authority to assign unfinished projects to buyers’ associations if the developer fails to deliver within the stipulated time.

RERA usually confines its action to imposing fines on errant builders, but the authority has now started exercising its discretionary powers to provide direct relief to victims of real estate fraud. Across the Hyderabad Metropolitan region, several such fraud cases have surfaced, where developers collected crores of rupees during pre-launch phases or under multiple marketing schemes but failed to deliver projects.

Many buyers who pay advance amounts face severe hardship when projects are delayed for years. They are often forced to pay EMIs on housing loans while also paying rent for their current accommodation. RERA, established by the government to address such grievances, is currently hearing over 2,340 cases, of which 493 relate specifically to construction delays.

To ensure proper execution in the Bowrampet case, RERA has directed the formation of a monitoring committee involving members from the National Real Estate Development Council (NAREDCO) and the Confederation of Real Estate Developers’ Associations of India (CREDAI). This committee will oversee the progress and ensure that the project is completed as per the agreed timelines and standards.

The decision by RERA is a significant step towards protecting the interests of homebuyers and setting a precedent for handling similar cases in the future. It underscores the importance of regulatory bodies in maintaining transparency and accountability in the real estate sector.