TGRERA fines Countryside Realtors Rs 38 lakh for failing to complete villa project even after 12 years

Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has imposed a penalty of Rs 38.59 lakh on Countryside Realtors for violating multiple provisions of the Real Estate (Regulation and Development) Act, 2016, in its Westend Greens villa project at Mokila village, Shankerpally mandal, Ranga Reddy district.

Buyers paid dues, but work crawls at 30%

Buyers who invested in the HMDA-approved layout in 2011 stated that they had paid the full construction cost, GST, charges for amenities like a clubhouse and a monthly maintenance of Rs 7,500 per villa.

Despite this, only 20 out of 117 promised villas have been completed in over 12 years. The project, spread across 12 acres, remains at just about 30 per cent completion, forcing residents to live amid incomplete infrastructure.

The buyers were represented by Senior Legal Counsel, Chandra Shaker Arcot of Chandra Associates.

No sewage treatment plant or a compound wall

Residents highlighted several alarming gaps.

There is no sewage treatment plant (STP) despite the layout’s size mandating it under National Green Tribunal norms. Instead, human waste is dumped in an open pit, posing health and environmental risks.

The layout also lacks a compound wall, leaving high-tension power lines dangerously exposed. Moreover, there is no proper water supply due to non-functional pumps and sumps, though these were promised under the sale agreement.

Revalidation and registration lapses

Buyers further alleged that while the developer applied twice to the Hyderabad Metropolitan Development Authority (HMDA) for revalidation of the layout plan, once in 2017 and again in 2019, they were never informed about its status.

Despite this, the project’s website continued to claim HMDA approval using the original layout permission number, misleading customers. They also pointed out that the project does not have the mandatory RERA registration, a clear violation, as the project is ongoing and lacks a completion certificate.

Residents allege threats and intimidation

Adding to their woes, residents said the builder had resorted to intimidation by deploying bouncers, cutting off water and electricity supply and threatening defamation suits to silence their grievances.

They also raised concerns over the collection of fresh maintenance charges through a firm specialising in liquidation and wind-down services, fearing financial mismanagement.

Homebuyers demand completion and protection

Aggrieved buyers sought urgent RERA intervention to ensure the mandatory registration of Westend Greens under the Act. They also requested reinstatement of the lapsed HMDA approval, disposal of HMDA mortgaged plots to fund completion and a strict timeline for completing villas and promised infrastructure like the STP, water systems, streetlights, clubhouse, swimming pool and sports facilities.

Additionally, they demanded protection from any further intimidation by the developer.

Strict directions from RERA

Taking note of the complaints, the authority directed the builder to pay a penalty of Rs 38.59 lakh within 30 days for violating Sections 11 and 14 of the RERA Act.

RERA also ordered the developer to immediately approach HMDA to secure the necessary permissions to complete the project as per the promises made to buyers. If approvals are not obtained, the builder will have to refund the amounts collected along with appropriate compensation.

Further, once the approvals are secured, the developer must register the project under RERA within 10 days. Until registration is granted, it is barred from advertising, booking or selling any more villas in the project. Any failure to comply will be treated as a serious offence, with the Authority warning that further penalties will follow under the Act.

Complaint disposed of, but watch on compliance

With these directions, the authority disposed of the buyers’ complaint but made it clear that any non-compliance would invite penalties under Section 63 of the Act. The ruling is seen as a strong message to errant developers about adhering to statutory obligations and safeguarding buyers’ rights.