Interim Order Complaint No.1269 Of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
24th April 2024

Corum:

Dr. N. Satyanarayana, IAS (Retd.), Hon’ble Chairperson
Sri LaxmiNarayanaJannu, Hon’ble Member
Sri K. SrinivasaRao, Hon’ble Member

COMPLAINT NO.1269 OF 2023
Between
Sri Abhishek Singh

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1040 OF 2023
Between
Sri BandiNarsaiah

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1039 OF 2023
Between
Sri Avulu Raghunath Chowdary

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1042 OF 2023
Between
Sri MalaReddy Sowmya

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1269 OF 2023
Between
Sri GurramRamahesh
Sri VangitiShireesha
Sri ChamanthuluSrinivasalu
1 of 19

RamuluGoli
ChelluboniaBhimeshwara Swamy
Chellubonia Meghana
Uduthu Uma Devi
Satish Desisreddi
Thota Vinay Babu

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1034 OF 2023
Between
Sri RamuluGoli
PulluruHarinath
Tumala Lavanya
BandiNageshwara Rao

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1046 OF 2023
Between
Sri P Harinath

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1045 OF 2023
Between
SriAlwala Srikanth

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1029 OF 2023
Between
Sri Vanteru Anil Kumar

…. Complainant

AND

2 of 19

M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1032 OF 2023
Between
Sri CH.S.R.K.Murthy

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1044 OF 2023
Between
Sri S Srinivas

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.1043 OF 2023
Between
Sri Gope Ramesh

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

COMPLAINT NO.15/A OF 2023
Between
JP Welfare Association

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.

…. Respondent

TSRERA PROJECT REGISTERATION NO: P02200003688
COMMON ORDER

These complaints have come up for hearing on 01.12.2023, 01.02.2024
and 15.02.2024, in the presence of Sri Niranjan Reddy advocate, Sri Anil
Kumar, president and Sri Sirigidi Srinivas Rao, Vice President of the
Association for complainants and Sri Rambika, advocate for the Respondent,
and having stood over the consideration till this day the Authority passes the
following Interim Common Order:
2.

These complaints have been filed under Section 31 of the Real Estate

(Regulation and Development) Act, 2016 (hereinafter referred to as the
3 of 19

“RE(R&D) Act”), read with Rule 34(1) of the Telangana Real Estate (Regulation
and Development) Rules, 2017 (hereinafter referred to as the “Rules”), seeking
directions from this Authority to take action against the Respondent.
3.

The case of the complainants in all the complaints is on similar

grounds. Similarly, the stand taken by the Respondent in their counters is
also the same. As such a common interim order is passed in all complaints.
4.

The complainants were directed by the Authority to form an association

of allottees. Consequently, the association was formed and registered. For the
sake of convenience and to avoid repetitions, the pleadings from the complaint
no.15A/2023 is referred below.
A. Brief facts and submissions of the complainant association are as
follows:
i.

The complainants herein have registered their association and are a
Society within the meaning of section 2(zg) of the Real Estate
(Regulation and Development) Act, 2016 (hereinafter referred to as the
RE(R&D) Act), and the Respondent is the Promoter/Developer within
the meaning of Section 2(zk) of the RE(R&D) Act. The Respondent is
registered as the promoter of the Project namely “Jaya Platinum” under
section 5 of the RE(R&D) Act bearing Project Registration no:
P02200004769 (hereinafter referred to as the “said project”). The said
project is a residential project wherein the development rights of the
said project are of the Respondent.

ii.

The complainants are the allottees with a common interest in the
project, namely Jaya Platinum located at Survey no. 461 part of
Bowrampet

Village,

Dundigal

Municipality

Mandal,

Medchal

–

Malkajgiri District, covering 2731.78 sq. yards, Hyderabad, Telangana.
This project was undertaken by M/s Jayathri Infrastructures India Pvt.
Ltd. The present office address is Plot no. 1005, opposite Eminent Plaza
Building, 4th floor, Jaya’s unique building, Kukatpally, Hyderabad –
500072. The parcel of land is under the ownership of M/s Jayathri
Infrastructures India Private Limited, as per sale deed no. 12502 of
2022, dated 25.04.2022.
4 of 19

iii.

This is a project with a sanctioned plan approved by the local authority,
HMDA, on 20.03.2021, and approved by the local body on 01.11.2021.
The project was required to be developed into residential apartments
totaling

60

flats/units,

as

per

the

sanctioned

plan

vide

043524/MED/R1/HMDA/25022021, with a built-up area of 5865.75.
iv.

On TS RERA Project registration webpage, the proposed completion date
of the said project is mentioned as 20.03.2021 as approved by the
Competent Authority, however, the RERA registration is valid up to
14.10.2024.

v.

The allottees of the said project, in their capacity, have filed these
complaints before the Authority. According to the complaints, there has
been no progress in the project and has been stalled since June 2022.
The

overall

project

progress,

as

reported

by

the

Allottees,

is

approximately 50%, limited to skeleton structure, brickwork, internal
and external plastering.
vi.

The Allottees assert that the Respondent has sold around 51 units out
of 60 units. The Respondents have registered 49 units in the name of
buyers. For the remaining 2 allottees, the Respondent has entered into
an Agreement of sale. Further submitted to this Authority that out of 60
flats, 9 flats have been mortgaged to HMDA.

vii.

Furthermore, it is stated that from July 2022 to the present date, the
Respondent has not undertaken any progress in the construction of the
said project. The Respondent has been providing different completion
and possession dates to the allottees, ranging from June 2022- June
2023. This delay has caused significant hardships to the allottees and
their families.

viii.

As per the Agreement of Sale executed by the Respondent with the
allottees, clause 5 of the Agreement of sale provided by the Respondent
states that the Developer shall abide by the time schedule for
completing the project as disclosed at the time of registration of the
project with the Authority. The time prescribed in the Form B dated
10.11.2023 for the completion of the project to this Authority at the
time of registration was of 3 years.
5 of 19

ix.

However, the Respondent has defaulted on duties, obligations, and
conditions applicable to a registered project, particularly in achieving
the requisite progress within the stipulated time.

B. The complainants are seeking the following relief:

i.

To direct the respondent to complete the project and hand over
possession of the flats/units to the allottees.

ii.

On 27.12.2023, the complainant prayed to this Authority that the
Registration Certificate bearing No.P02200003688 issued in the name
of and/or in favour of the Respondent for the development of the project
on the said property be revoked and/or cancelled forthwith and hand
over the project to the Association under section 8 of the RE(R&D) Act
for the completion of the project.

iii.

Or such other and further reliefs as this Authority deems fit and proper
in the facts and circumstances of the present case.

C. Brief submissions of the Respondent are as follows:
a. The respondent submitted that he has entered into a contract
agreement with M/s Naga Durga Enterprises, represented by its
Proprietor, Smt. K Naga Durga. He has given the present position of the
project, almost done by the contractor, for the slabs work, brickwork,
pasting work in all the floors, except plastic work and plumbing,
sanitary work, electric works up to the handover stage of the flats. The
contractor has completed the work up to the above stage without any
delay, and the respondent has paid up to 85% of the amount to the
contractor as per the agreement. The respondent has raised delay
concerns with the contractor, but the contractor has been avoiding the
respondent for a year.
b. The respondent is planning to sell a few of the vacant flats in the
concerned project and pay the remaining balance amount to the
contractor for completing the pending work without any further delay.
The respondent requested this Authority to approve the above process
and give permission to him to proceed further with the above-mentioned
plan.
D. Hearing Conducted:
6 of 19

6.

This matter was heard on 01.11.2023, during the hearing, the

respondent admitted to the delay in completing the project and asserted that
his company is facing financial crises, hence causing a delay in project
completion. In contrast, the complainants reiterated the contentions made in
their complaints.
7.

Furthermore, the respondent was directed to file a reply to the

contentions made by the complainants. Additionally, the respondent was
instructed to submit a plan of action within a period of one month for the
completion of the project. As the allottees were not registered as an
association, the complainants were directed to register the association
(a) Assessment of the Project by an Independent Agency
8.

Meanwhile,, in accordance with the provisions of Section 35 of the Real

Estate (Regulation and Development) Act, 2016, the Authority directed the
Engineering Staff College of India (ESCI) to inspect the project under
construction "Jaya Platinum.
9.

Following the Authority’s directions, ESCI submitted an inspection

report (ESCI/PD/TPQC/TSRERA/06/2023-24) dated December 1, 2023, on
the project. According to the report, the housing project is a multi-storeyed
building (1 Stilt + 5 Upper floors) spread over an area of 3267.0 Sq.Yds. in
Survey

Number

461/P,

situated

at

Bowrampet

village,

Dundigal-

GandiMaisammaMandal, under Dundigal Municipality, Medchal--Malkajgiri
District. The building permission was obtained by the previous owner vide
Building

Technical

approval

no.043524/MED/R1/U6/HMDA/25022021,

dated March 20, 2021, and the same is approved by the local body vide
Permit no.G1/DM/3810/BP/2021 & File no.3810, dated November 1, 2021.
10.

As a result of appraisal and analysis, it is of the opinion that the

present stage of construction work assessed is 66% of the total work, and
there are balance works to an extent of 34% to be completed.
11.

As on the date of inspection, there is no progress of work, and it is

informed by the complainants that the work has been stopped since June
2022. After evaluation and analyzing, the balance work may take 12 more
months from the date of commencing with uninterrupted cash flows.
7 of 19

According to the report, the total estimated cost is Rs. 7.50 crores. However,
as per the engineer certificate issued, the total estimated cost incurred till
April 1, 2022, is estimated at Rs. 11,69,73,600/-.
12.

Meanwhile, the complainants submitted a counter-reply to the reply

filed by the respondent dated December 27, 2023, requesting this Authority to
allow them to take over the project.
(b) Assessment of Promoters Credibility
13.

Considering M/s Jayathri Infrastructures Private Limited, the promoter

for various projects namely, "Jaya Platinum, Jaya Gold, Jaya Diamond, Jaya
Hilton, Western Galaxy, Western Weaves, and Lexico Kondapur," has failed to
adhere to the provisions of the Real Estate (Regulation and Development) Act
(hereinafter referred to as "the Act"), resulting in over 100 complaints lodged
against them before this Authority. Allegations raised by the allottees of
different projects, alongside inspection reports, indicate that M/s Jayathri
Infrastructure is engaged in activities such as marketing or selling projects
without proper registration under Section 3 of the Act, collecting advances
exceeding 10% without executing a valid agreement of sale as mandated by
Section 13, neglecting to furnish quarterly reports of the registered project in
violation of Section 11, and failing to fulfill all obligations, responsibilities,
and functions prescribed under the Act as per Section 11(4). Furthermore, the
promoter has advertised and collected advances/deposits without possessing
any legal title or rights over the projects, contravening Section 12.
14.

Throughout these proceedings, M/s Jayathri Infrastructures has

consistently failed to provide satisfactory explanations for the delays and
financial irregularities surrounding the project. Despite assurances of
progress, inspections by the Engineering Staff College of India have revealed
significant stagnation in construction since June 2022, with only 66% of the
work completed and mismanagement of funds evident. This Authority has
also imposed penalty on M/s Jayathri Infrastructures for indulging in
marketing and advertising in violation of the section 3 of the RE(R&D) Act,
2016.

8 of 19

15.

Considering the aforementioned contraventions of the provisions by

M/s Jayathri Infrastructure, and acknowledging that not only project "Jaya
Platinum" but also other projects such as Jaya Diamond or Jaya Hilton have
been stalled by the Respondent since July 2022, misleading the Complainants
with various promises, it is evident that the Promoter has been afforded ample
opportunities by this Authority for the completion of the project. However, the
promoter has failed to even initiate the pending construction work since the
filing of complaints. Additionally, considering the fact that the Promoter was
incarcerated and there was no genuine attempt to complete the Project within
the stipulated timeframe, and due to the inconsistency in the completion
dates provided in their responses, it is doubtful that the Promoter will adhere
to their commitments, thereby solidifying doubts regarding their intentions to
complete the concerned project.
16.

Hence, the Authority is inclined to consider the prayer made by the

association of allottees, as it appears that the Respondent may lack the
capability to carry out the development and complete the concerned project.
(c) Action for Revocation of RERA registration under section 7
17.

Consequently, the Authority vide letter no: 1029/TSRERA/2023,

Dt:11.01.2024, issued show cause notice to the Respondent u/s 7(1) and (2)
of the Real Estate (Regulation and Development) Act,2016 as under
Revocation of RERA registration for the project “Jaya Platinum” and to submit
explanation in writing as to why the Registration should not be revoked:
“2 WHEREAS after hearing the Association, consisting of 34

members, and the

respondent on 01.11.2023 and in

subsequent meetings, the Telangana State Real Estate
Regulatory Authority is prima facie of the view that there
appears to be force in the allegations by the allottees that the
Respondent M/s. Jayathri Infrastructure Pvt. L.td., has
violated the provisions of the Real Estate (Regulation and
Development) Act, 2016 and Rules framed thereunder by
committing the following violations/omissions:
9 of 19

i) Failed to clarify the reasons for the inordinate delay in
completing the project and the acute financial crisis faced by
the Company;
i) Failed to explain the discrepancies in the estimated project
cost and the funds Utilized, as per the Engineer Certificate
issued
iii) Failed to submit any documentary evidence to secure
funds for project completion despite previous commitments
and a two-nmonth grace period granted by the Authority;
iv) Failed to provide any substantial response to Complete the
project during the hearing and failed to provide any evidence
to substantiate the claim made complete the project.
v) Misled the Authority and allottees making varying promises
regarding possession and completion dates, which amounts
to unfair practices.
vi) Failed to secure funds to complete the project and also
failed to update quarterly reports on TS RERA Website
violating Sections 11, 13 and other provisions of Real Estate
(Regulation and Development) Act, 2016.
vii) Violated the provisions of the Act and Rules by accepting
sums exceeding ten per cent without an Agreement of Sale
and causing discrepancies in the Agreement of Sale, which
affect the interest of allottees/home buyers in the project.
viii) Failed to submit the progress report of other projects until
now, even after repetitive directions by the Authority.
3. An inspection of the construction project "Jaya Platinum"
was directed by the Authority, resulting in a report submitted
by

the

Engineering

Staff

College

of

India

(ESCI)

on

01.12.2023. The inspection report revealed that the project is
at a standstill since June, 2022, with only 66% of the total
work completed. The estimated cost incurred exceeds the
projected cost, indicating mismanagement of funds, seriously
affecting interest of all ottees/home buyers of the project.
10 of 19

4 M/s. Jayathri Infrastructure Pvt.Ltd., is also involved in
multiple projects namely: 1. Jaya Diamond (RERA Regn.:
P02200004769), 2, Jaya Gold (not RERA registered), 3.
Western Galaxy (not RERA registered), 4. Jaya Hilton (not
RERA registered) 5. Western Weaves (not RERA registered), 6.
Kondapur Central Luxcus (not RERA registered) facing similar
issues, raising concerns about the Company's capability to
fulfil its obligations thereby seriously affecting the interests of
the allottees/home buyers of the projects in particular and in
the public interest.
5. In the light of said serious defaults, the TS RERA Authority,
under

Section

7

(2)

of

Real

Estate

(Regulation

and

Development) Act, 2016, decided to issue notice to you to
bring to your notice the violations committed and to enable
you

to

submit

registration

for

explanation

to

the

"Jaya

project

consider

revocation

Platinum",

of

bearing

registration No.P02200003688.”
18. Respondent has submitted a reply to the show cause notice, dated
15.02.2024, stating the following reasons as to why this Authority should not
revoke RERA registration:


On the time of construction some few mistakes are
thrown on the work place, my client has paid almost
8.50 crore rupees to existing contractor and also
allotted to one of the flat in this project in his name. but
he is not interested to construct the building, as my
client also tried to replace another contractor but its
created violence at the work place.



Most of the amount utilized to acquisition of land
(approx. 15.5 crore) along with advances and other
expenditure at work, there is no misleading of funds.
My

client

followed

the

legal

terminology

and

maintained the accounts flow.
11 of 19



My client requests to concerned authority to cancel the
show cause notice the TS RERA under section 7 (2) of
Real Estate (Regulation and Development) Act, 2016,
and give the alternative method to resolve the issue of
the flat owners, allottees, agreement holders.
i.

My client shall raise the funds to complete the
construction of the project without delay with
coordinating with platinum association of the
project and with your guidance and principles.
If, my client interest to change the contractor, it
will be with Jaya platinum association consent
through your valuable guidance.

ii. IN this project some few flats are unsold to third
party; my client shall sell such the flats to
generate

the

consideration

to

transfer

the

existing RERA accounts with your permission.
And my client will be raised the funds through
his other properties. My client will be complete
the

project

with

in

time

period

of

RERA

REGISTRATION ID time on or before 14th
October 2024.
iii. We request to cancel the show cause notice
against my client to give the alternative option to
settle

the

issues

for

allottees

instead

of

revocation of registration of the project.”
19.

On 06.03.2024, the complainants were heard, whereas no one appeared

on behalf of the Respondent. The complainants reiterated that they are still
requesting the Authority to hand over the project to the Association by
canceling the RERA registration of the said project.

12 of 19

E. Observations by the Authority:
20.
The issue that needs to be considered is Whether a case is made out
for taking action under section 7 of the RE(R&D) Act? In this context, it
would be necessary to refer section 7 of the said Act, which reads under:
“7. (1) The Authority may, on receipt of a complaint or suo motu
in this behalf or on the recommendation of the competent
authority, revoke the registration granted under section 5, after
being satisfied that—
(a) the promoter makes default in doing anything required by or
under this Act or the rules or the regulations made thereunder;
(b) the promoter violates any of the terms or conditions of the
approval given by the competent authority;
(c) the promoter is involved in any kind of unfair practice or
irregularities. Explanation.—For the purposes of this clause, the
term "unfair practice means" a practice which, for the purpose
of promoting the sale or development of any real estate project
adopts any unfair method or unfair or deceptive practice
including any of the following practices, namely:—
(A) the practice of making any statement, whether in writing or
by visible representation which,—
(i) falsely represents that the services are of a particular
standard or grade;
(ii) represents that the promoter has approval or affiliation
which such promoter does not have;
(iii) makes a false or misleading representation concerning the
services;
(B) the promoter permits the publication of any advertisement or
prospectus whether in any newspaper or otherwise of services
that are not intended to be offered;
(d) the promoter indulges in any fraudulent practices.
(2) The registration granted to the promoter under section 5
shall not be revoked unless the Authority has given to the
promoter not less than thirty days notice, in writing, stating the
grounds on which it is proposed to revoke the registraton, and
has considered any cause shown by the promoter within the
period of that notice against the proposed revocation.
13 of 19

(3) The Authority may, instead of revoking the registration
under sub-section (1), permit it to remain in force subject to
such further terms and conditions as it thinks fit to impose in
the interest of the allottees, and any such terms and conditions
so imposed shall be binding upon the promoter.
(4) The Authority, upon the revocation of the registration,—
(a) shall debar the promoter from accessing its website in
relation to that project and specify his name in the list of
defaulters and display his photograph on its website and also
inform the other Real Estate Regulatory Authority in other
States

and

Union

territories

about

such

revocation

or

registration;
(b) shall facilitate the remaining development works to be
carried out in accordance with the provisions of section 8;
c) shall direct the bank holding the project back account,
specified under subclause (D) of clause (I) of sub-section (2) of
section 4, to freeze the account, and thereafter take such
further necessary actions, including consequent de-freezing of
the

said

account,

towards

facilitating

the

remaining

development works in accordance with the provisions of section
8;
(d) may, to protect the interest of allottees or in the public
interest, issue such directions as it may deem necessary.”

21.

From the plain reading of the above section, it is clear that this

Authority may, on receipt of a complaint, revoke the registration granted
under section 5, only after being satisfied that the essential ingredients of
revocation are: (a) the promoter (Respondent herein) makes a default in doing
anything required by or under this Act or the rules or the regulations made
thereunder; (b) the Promoter (Respondent herein) violates any of the terms or
conditions of the approval given by the competent authority; (c) the Promoter
(Respondent herein) is involved in any kind of unfair practices or
irregularities; (d) the Promoter (Respondent herein) indulges in any fraudulent
practices, and in case the project has lapsed, then the Authority may consult
14 of 19

the appropriate Government to take such action including the carrying out of
remaining development works by the competent authority or by the
Association of Allottees or in any other manner. As per section 7(3) of the
RE(R&D) Act, the Authority also has the power instead of revoking may keep
the registration to remain in force subject to terms and conditions.
22.

Further, it is also pertinent to note that the scheme of the Act is to

safeguard the interest of an Allottee against the Promoter and at the same
time, RE(R&D) Act also bestows upon the Authority the responsibility to
safeguard the Promoter against unreasonable demands of the allottees and
ultimately ensures the completion of the project in a time-bound manner.
23. The Authority notes that the Respondent has made varying promises
regarding the handover of possession to the allottees, ranging from the year
2022-2023. Despite previous claims of arranging funds during earlier
hearings, the Respondent's company has been unable to secure funds, as per
the reply and submissions presented to this Authority. Despite granting the
Respondent a two-month period to submit a valid plan of action for the
completion of the project, the Respondent has failed to provide any
satisfactory reply to the Authority.
24. During the proceedings, the Authority made efforts to direct both parties
to conduct meetings and resolve issues. On November 8, 2023, the
respondent/promoter informed the Authority that they are unable to secure
funds for the project's completion at present.
25. As per RERA registration, the Promoter is obligated to complete the
project by October 2024. However, in the sale deeds, agreements of sale, and
MOUs entered with allottees, the Promoter has committed to hand over
possession by June 2023. It is noted that the Promoter has failed to complete
even more than 60% of the project since January 2023. The Authority,
considering the totality of facts and circumstances, and the Promoter's failure
to comply with the provisions of the Act, has assessed the defaults
attributable to the Promoter, including the non-initiation of pending
construction work since January 2023, non-completion of work as per
Agreements of Sale, Sale Deed, or MOUs, failure to achieve progress as
15 of 19

promised, and unsatisfactory submissions regarding the utilization of
amounts collected from allottees. Given these defaults and the hardships
faced by the allottees, the Authority concludes that the claims of the
respondent to complete the project themselves are unfounded. Therefore, the
Authority is unable to accept the respondent's argument that they have the
capability to complete the project.
26. Further, the Authority notes that the complainant association is primarily
seeking revocation of the said project together with a direction to complete the
construction of the Project either by them or by appointment of a new
Developer.
27. In light of the defaults attributable to the Respondent and in consideration
of the provisions delineated in section 7 of the Real Estate (Regulation and
Development) Act (hereinafter referred to as the "RE(R&D) Act), the Authority
has no hesitation to conclude that the promoter persistently failed to fulfil the
obligations mandated by the RE(R&D) Act. Prior to proceeding further, it is
imperative to acknowledge that the act of revoking registration carries
significant ramifications. It is owing to this criticality that the aforementioned
Act has meticulously outlined specific grounds and circumstances under
which the Authority is empowered to wield such prerogative.
28.

It is pertinent to note that all projects of M/s Jayathri Infrastructure,

totalling seven, are currently under adjudication by this Authority. More than
100 complaints have been registered before this Authority regarding these
projects. Considering the repeated violations of the Real Estate (Regulation
and Development) Act (RE(R&D) Act) by Jayathri Infrastructure across all of
its projects, wherein M/s Jayathri has marketed/sold units/plots without
obtaining RERA registration, entered into agreements without possessing
proper legal title over the land or project, and mismanaged the funds collected
by the Allottees.
29.

In the present case, it is evident that the Respondent has unequivocally

defaulted in meeting the stipulated timelines for the completion of the Project,
commitments made both to the allottees and this Authority during the

16 of 19

procurement of the Project RERA registration. Additionally, it is noted that the
Respondent has neglected to provide adequate elucidation, offering vague
justifications for the project's delayed completion and the financial hardships
purportedly encountered by their company, as well as the mismanagement of
funds as depicted in the Inspection Report submitted by ESCI. Furthermore,
the Respondent has failed to uphold their obligation to update the Quarterly
Project Report on the TSRERA website, thereby contravening section 11 of the
RE(R&D) Act. Moreover, the act of collecting advances from the allottees
exceeding 10% prior to entering into a sale agreement violates section 13 of
the RE (R&D) Act.
30.

In light of the recurring violations of the RE(R&D) Act, this Authority is

contented with the determination that the Respondent has failed to fulfill their
obligations as delineated in section 7 of the RE(R&D) Act.
31.

In light of the letter dated 18.03.2024 submitted by the complainant,

wherein more than 90% of the allottees have consented to complete the
project through the association, and a proposal has been proffered by the
Association,

the

Authority

deems

it

necessary

to

acquire

a

more

comprehensive understanding of the Complainant Association's intentions
regarding the completion of the project and their proposed engagement with
the allottees subsequent to the revocation. The association is required to
furnish a detailed plan outlining the appointment of credible and competent
entities or individuals, and as of yet, the Authority has not received a financial
credibility report. In these circumstances, the balance of convenience leans
towards suspending the registration granted by the Authoirty under section
7(3) of the RE(R&D) Act..
32.

The complainant’s association, in consensus with the majority of the

allottees, shall submit a project completion plan along with a financial
credibility report.
33.

In the interim, the complainant association is instructed to furnish the

aforementioned report for the completion of the remaining development and
construction work of the project.

17 of 19

F. Directions of the Authority:
30.

In light of the aforementioned observations, this Hon’ble Authority

hereby issues the following Interim orders and directives pursuant to Section
36 of the RE(R&D) Act:
1. The Project “Jaya Platinuim” with registration number P02200003688
is hereby placed in abeyance. The Respondent is directed to cease all
advertising, marketing, booking, selling, or offering for sale, and inviting
persons to purchase in any manner any apartment in the said project
until further notice, in order to safeguard the interests of the allottees
and in the public interest.
2. The JP Welfare Association is instructed to submit a roadmap for the
completion of the project within 30 days of this Order, along with a
general body resolution of the Association of Allottees, providing explicit
consent to the construction work of the Project.
3. The Secretary, TS RERA, is directed to take appropriate steps regarding
suspension of the aforementioned project's RERA registration number.
The Secretary TS RERA is further directed to block access to the said
project's RERA registration number, review all returns filed to date,
ensure their safe custody, and freeze the designated bank account of
the said project. Additionally, the operative part of this Order shall be
prominently displayed on the website associated with the said project's
Registration number.
4. The Interim order shall remain in force until the issuance of the final
order by this Authority or until further modifications or directions are
given by this Authority.
5. The Complainant and Respondent is hereby notified to comply with this
Interim Order.
6. The Steps of consulting the appropriate government as required under
section 8 of RE(R&D) of the Act, if any shall be considered/taken up in
due course of time.
18 of 19

7. If aggrieved by this Order, the parties may approach the TS Real Estate
Appellate Tribunal (vide G.O.Ms.No.8, Dt.11-01-2018, the Telangana
State Value Added Tax Appellate Tribunal has been designated as TS
Real Estate Appellate Tribunal to manage the affairs under the Act till
the regular Tribunal is established) as per Section 44 of the Act, 2016.

Sd/-

Sd/-

Sd/-

Sri. K. Srinivas Rao,
Hon’ble Member
TS RERA

Sri. Laxmi NaryanaJannu,
Hon’ble Member
TS RERA

Dr. N. Satyanarayana, IAS (Retd.),
Hon’ble Chairperson
TS RERA

19 of 19