Interim Order Complaint No. 821 of 2021

TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
COMPLAINT NO.821 OF 2021
Date of Decision: 29.08.2023
Rock Gardens Flat Owners Welfare &
Maintenance Co-Operative Society

…Complainant
Versus

M/s Rainbow Builders

…Respondents

Quorum:

Dr. N. Satyanarayana, Hon’ble Chairperson
Sri K. Srinivasa Rao, Hon’ble Member
Sri Laxmi Narayana Jannu, Hon’ble Member

Argued by:

Mr. Deepak Chowdary, Advocate, Mr. B. Prakash, Mr. R.
Laxman Chowdary, Mr. K. Somasekhar Babu for the
Complainants.
None for the Respondent.
ORDER

The present Complaint has been filed under Section 31 of the Real Estate
(Regulation and Development) Act, 2016 (hereinafter referred to as the “Act”) read
with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules,
2017 (hereinafter referred to as the “Rules”) requesting to take appropriate action
against the Respondent Builder.

A. Brief facts of the case:
2.

The present Complaint involves the Respondent Firm's ownership of a land

measuring 4,632 Sq Yds, designated as Plot Nos. 155/P to 169 in "MARWA
TOWNSHIP-B," Narsingi Village, Telangana. In 2017, the Respondent obtained
permissions to construct a Residential Apartment Complex with multiple floors and

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blocks. The Complainant contends that the Respondent violated Rules 3 and 4 of
the 2017 Rules, applicable to real estate projects approved after 01.01.2017, by not
adhering to project completion timelines in agreements with various allottees. The
Complainant asserts that the Respondent's actions misled allottees about
completion timelines, prompting them to enter into agreements.

B. Interim Prayer:
3.

That in the interim, the Complainant has prayed for:

“(i) direction to restrain the Respondent from unauthorised sale of space allocated for
entrance access to cellar and its adjacent parking space on the ground floor to third
parties for any other purpose which is in contravention to the sanction plan,
(ii) stay of all further registration on unregistered flats in favour of any potential
allottees in the Residential Project,
(iii) direction to attach the bank accounts of the Respondent firm and its registered
partners,
(iv) and pass such other order or orders as this Hon’ble Authority may deem fit and
proper in the circumstances of the case.”

C. Notices served upon the Respondent:
4.

Accordingly, vide Notice dated 24.01.2022, served upon the Respondent, this

Authority directed the Respondent to submit a reply along with such other
information with regard to the Project. Further, on the same day, i.e., on
24.01.2022, this Authority also served Show Cause Notice as to why penalty should
not to be imposed upon the Respondent for violation of Section 3 & 4 of the Act,
2016.

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5.

Subsequently, another Show Cause Notice dated 12.05.2023 was served to

the Respondent seeking explanation as to why this Authority shall not levy penalty
under Section 63 of the Act, 2016 for failing to comply with and contravening the
orders or directions of the Authority. Despite issuing three notices, there was no
response from the Respondent.

D. Hearing Conducted:
6.

Therefore, a Summons dated 01.08.2023 was served to the parties to appear

before the Hon’ble Authority for hearing in the matter on 09.08.2023. Accordingly,
the Complainant Association represented by its Advocate, Mr. Deepak Chowdhary
along with office bearers of the Complainant Association appeared on 09.08.2023
and there was no representation on behalf of the Respondent on the said day.

7.

On the said day, the Complainant Association reiterated the contentions

raised in the complaint and sought for time to file additional documents. It was
prayed that interim orders may be passed restraining the Respondent to register
any further flats as the Respondent failed to register before RERA, failed to provide
amenities as promised under the Agreement of Sale and also failed to obtain
Occupancy Certificate and accordingly the matter was adjourned to 29.08.2023.
On 29.08.2023, the Respondent failed to appear before this Authority, yet again,
and the Complainants submitted that only 2 out of 68 flats are left and the rest of
them have been sold by the Respondent Builder without registering before this
Authority.

E. Observations of the Authority:

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8.

As per the online Encumbrance Certificate filed by the Complainant on

record, it is apparent that the Respondent is entering into registered the flat with
allottees even after Show Cause Notices dated 24.01.2022 and 12.05.2023 have
been served upon him, which imminently calls for the present interim order.

F. Interim Directions of the Authority:
12.

Therefore, upon consideration of the facts and circumstances of the present

case, this Authority deprecates the behaviour of such Builders who evade the law.
For contravening Section 3 of the Act, Order under Section 59 is being
simultaneously issued and vide its powers under Section 36 of the Act, this
Authority restrains the Respondent Builder, not to register/alienate any further
flats until the present matter is disposed of.

9.

The matter is listed on 21.09.2023 for hearing.

Sd/Sri K. Srinivasa Rao, Hon’ble Member
TS RERA

Sd/Sri Laxmi Narayana Jannu, Hon’ble Member
TS RERA

Sd/Dr. N. Satyanarayana, Hon’ble Chairperson
TS RERA

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