Telangana RERA Orders Builder To Rectify Structural Defects Arising Out Of Real Estate Project

Aryan Raj

2 May 2024 1:15 PM GMT

  • Telangana RERA Orders Builder To Rectify Structural Defects Arising Out Of Real Estate Project

    The Telangana Real Estate Regulatory Authority (TSRERA) bench, consisting of Justice Dr. N. Satyanarayana (Chairperson), K. Srinivasa Rao (Member), and Laxmi Narayana Jannu (Member), has directed the builder to rectify the structural defects arising from the project following the transfer of possession to the homebuyers, as per section 14(3) of The Real Estate (Regulation and...

    The Telangana Real Estate Regulatory Authority (TSRERA) bench, consisting of Justice Dr. N. Satyanarayana (Chairperson), K. Srinivasa Rao (Member), and Laxmi Narayana Jannu (Member), has directed the builder to rectify the structural defects arising from the project following the transfer of possession to the homebuyers, as per section 14(3) of The Real Estate (Regulation and Development) Act, 2016.

    Background Facts

    The complainants (Homebuyers), who are residents of Empire Meadows apartments in Sangareddy District, Hyderabad, entered into an agreement with the respondents (Builder) on 14.02.2020 to purchase residential 3 BHK flats. Despite fully paying the sale consideration amount, several blocks and amenities in the project remain under construction, causing uncertainty regarding the completion date.

    Issues such as incomplete drainage lines for new blocks, unclear car parking slot allocation, and delayed construction of amenities have led to health hazards and inconvenience for the residents. The project, originally scheduled for completion by 2022, remains unfinished, resulting in pollution and health concerns due to dust and noise.

    Moreover, maintenance charges have been collected without transparency, and crucial amenities like the clubhouse and children's play area remain incomplete. The lack of proper hygiene and maintenance, including open drainage and rainwater lines causing water logging, further exacerbates the situation.

    Despite repeated attempts to communicate with the builder and request essential details, the residents have not received satisfactory responses. Aggrieved by the incomplete construction and associated inconvenience, the Homebuyers filed a complaint before the TSRERA seeking redressal of existing issues and damages amounting to Rs. 100,000 for incomplete construction.

    TSRERA Order

    TSRERA directed the builder to develop the rocky area adjacent to the forthcoming clubhouse into a landscaped area and deliver it to the Homebuyer association. Additionally, TSRERA directed the builder to hand over the amenity block to the association.

    TSRERA referred to section 14(3) of The Real Estate (Regulation and Development) Act, 2016, which reads as follows:

    14. Adherence to sanctioned plans and project specifications by the promoter

    (3) In case any structural defect or any other defect in workmanship, quality, or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of the promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act.

    Therefore, TSRERA observed that the builder has a duty to rectify structural defects or quality issues, as per section 14(3) of the RE(R&D) Act. Furthermore, the builder is liable to rectify the Sewage Treatment Plant (STP) and other related infrastructure issues, including provisions concerning the STP plan, generator, drainage, sewerage pipelines, and rainwater harvesting, in accordance with section 14(3) of the RE(R&D) Act.

    Case – Chandrashekar Laxmi Sudha & another Versus M/s Empire Meadows and others

    Citation - COMPLAINT NO.1400 OF 2023


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