Move to rein in errant builders

Hyderabad: The pre-launch and buy-back offers from realtors are dashing the dreams of many who aspire to own a home in the state. Customers in the twin cities are particularly affected, losing crores of rupees in poorly executed deals by builders. In response, the Telangana Real Estate Regulatory Authority (TG-RERA) and the state government are taking steps to deliver justice to homebuyers deceived by these builders.

In a groundbreaking move, the authorities have assigned the construction of Jayathri Infrastructure’s Platinum Project in Dundigal to a third-party builder. The state government has approved this proposal from TG-RERA. Subsequently, TG-RERA invoked Section 8 of the RERA Act of 2016 and issued interim orders to transfer the project’s construction to a third party. TG-RERA is considering similar measures for other incomplete projects.

According to RERA sources, Jayathri Infrastructure, led by Kakarla Srinivas, announced the Platinum Project in Dundigal. The project is planned for a site of 3,267 square yards, intended to feature a stilt plus five floors after obtaining necessary approvals from the HMDA for a built-up area of 5,865 square yards.

The stilt floor is typically designated for parking, while the five upper floors are meant for residential or commercial use. The builder offered 60 apartments to potential buyers without registering with TG-RERA, and collected crores of rupees through pre-launch offers, misleading buyers into believing that construction was progressing rapidly.

Of the 60 apartments, he sold 51, in addition to nine units that were mortgaged to the HMDA.

The builder has reportedly misused the funds collected from the customers and left the project incomplete at halfway. The customers filed a complaint with TG-RERA last September. In addition to Jayathri Infrastructure, RERA authorities are investigating other incomplete projects by Sahithi Infratech Ventures and Mantri Developers.

The regulatory authority is now working to hand over these projects to third-party builders. TG-RERA is focusing on incomplete projects in Gachibowli, Gundlapochampally, and Ameenpur, where Sahithi Infratech Ventures collected substantial sums from customers and then abandoned the projects.

Similar is the case of Mantri Developers has reportedly taken crores of rupees from clients while selling luxury apartments near Jubilee Hills Check Post. These projects were also left incomplete due to the misuse of funds. RERA officials clarify that any construction of more than eight apartments falls within their jurisdiction.

Many builders sell flats without obtaining this registration, leading to the diversion and misuse of funds and, resulting in incomplete projects. As a result, buyers in these developments find themselves stranded.

TG-RERA Member K Srinivas Rao stated that many builders and agents have been misleading customers with unrealistic promises. All such builders will be held accountable, he added.