TGRERA Intervenes to Complete Long-Stalled Jaya Platinum Project in Bowrampet

Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) played a crucial role in the successful completion of the long-stalled Jaya Platinum residential project, which was taken over by the Association of Allottees. The project, which had faced significant delays and construction stoppages, was finally issued an Occupancy Certificate on January 5, 2024.

The case revolves around the Jaya Platinum project, developed by Jayathri Infrastructures India Pvt. Ltd. in Bowrampet Village, Dundigal Municipality, Medchal–Malkajgiri district. The project spans 2,731.78 square yards and consists of a stilt plus five floors, with a total of 60 apartments. It was initially registered with TGRERA.

Homebuyers began filing complaints under Section 31 of the Real Estate (Regulation and Development) Act, 2016, alleging prolonged delays and a complete halt in construction since June 2022. Despite selling over 50 units and registering 49 sale deeds, the promoter failed to meet the promised timeline, causing significant distress to the buyers.

During the final hearing, the promoter did not appear despite due notice and was declared ex parte. TGRERA found that the promoter had cited contractor disputes and financial distress but failed to provide a credible financial plan or construction roadmap even after multiple opportunities.

To verify the situation, TGRERA ordered an independent inspection by the Engineering Staff College of India (ESCI). The ESCI report revealed that only 66 percent of the project was completed, with construction having been stalled since June 2022. The report also highlighted a significant mismatch between the claimed expenditure and the actual physical progress, estimating that at least 12 months would be required to complete the remaining works, provided there was uninterrupted funding.

TGRERA took serious note of the promoter's regulatory history, which included over 200 pending complaints across multiple projects for violations of RERA provisions, such as delays, non-compliance, and financial indiscipline. Based on these findings, TGRERA initiated proceedings under Section 7 of the Act and formally revoked the project registration on April 30, 2024, declaring the promoter a defaulter.

The Authority concluded that the promoter lacked the financial capacity, technical preparedness, and regulatory credibility to complete the project. Under Section 8 of the Act, TGRERA, after consulting the Government of Telangana, permitted the JP Welfare Association, the registered Association of Allottees, to take over and complete the project. Over 90 percent of the allottees consented to this move and agreed to contribute funds under strict regulatory supervision.

Following the takeover, the Association successfully completed the remaining construction in compliance with all statutory requirements. The competent authority issued the Occupancy Certificate on January 5, certifying that the building conformed to sanctioned plans and was fit for occupation. This marked the end of the long-standing uncertainty faced by homebuyers.

TGRERA noted that nine flats had been mortgaged with the local authority during construction. Upon the release of these mortgaged units, the promoter has been directed to execute and register conveyance deeds in favor of the concerned allottees within 30 days, failing which penal action will be initiated under the Act. The Association of Allottees will bear no liability related to these mortgaged units, and all statutory obligations remain with the promoter.

TGRERA expressed its appreciation for the Association of Allottees, commending them for completing the project with transparency, financial discipline, and collective responsibility. The Authority described this as a model example of effective homebuyer-led completion under the RERA framework.

In its final order, TGRERA declared the project lawfully completed and disposed of the complaints with no order as to costs, while reiterating that the promoter's past liabilities and statutory obligations remain enforceable under law.