Order Complaint No. 15(A) Of 2024

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
2nd December 2024
Corum:

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

1.
Between
Sri Abhishek Singh

COMPLAINT NO.1269 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
2.
Between
Sri BandiNarsaiah

…. Respondent
COMPLAINT NO.1040 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas

…. Respondent

3.
COMPLAINT NO.1039 OF 2023
Between
Sri Avulu Raghunath Chowdary

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
4.
Between
Sri MalaReddy Sowmya

…. Respondent
COMPLAINT NO.1042 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
5.
Between
Sri GurramRamahesh

…. Respondent
COMPLAINT NO.1269 OF 2023

Sri VangitiShireesha
Sri ChamanthuluSrinivasalu
RamuluGoli

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

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
6.
Between
Sri RamuluGoli

…. Respondent
COMPLAINT NO.1034 OF 2023

PulluruHarinath
Tumala Lavanya
BandiNageshwara Rao

…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
7.
Between
Sri P Harinath

…. Respondent
COMPLAINT NO.1046 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
8.
Between
SriAlwala Srikanth

…. Respondent
COMPLAINT NO.1045 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
9.
Between
Sri Vanteru Anil Kumar

…. Respondent
COMPLAINT NO.1029 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas
10.
Between
Sri CH.S.R.K.Murthy

…. Respondent
COMPLAINT NO.1032 OF 2023
…. Complainant

2 of 29

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas

…. Respondent

11.
Between
Sri S Srinivas

COMPLAINT NO.1044 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas

…. Respondent

12.
Between
Sri Gope Ramesh

COMPLAINT NO.1043 OF 2023
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas

…. Respondent

13.
Between
JP Welfare Association

COMPLAINT NO. 15(A) of 2024
…. Complainant

AND
M/s Jayathri Infrastructures India Pvt Ltd.– “Jaya Platinum Project”, rep by Sri
K.Srinivas

…. Respondent
TGRERA PROJECT REGISTERATION NO: P02200003688

COMMON INTERIM ORDER

These complaints have come up for hearing on 06.03.2024, in the
presence of Counsel Niranjan Reddy , Sri Anil Kumar, president of
Association of Allottees and Sri Sirigidi Srinivas Rao, Vice President of the
Association for Allottees and Counsel Sri Rambika, for the Respondent, and
having stood over the consideration till this day, the Authority passes the
following Interim Order:
2.

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

(Regulation and Development) Act, 2016 (hereinafter referred to as the
“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.
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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 same. Therefore for the sake of the convenience and to avoid repetitions
the pleadings from the complaint no.15A/2024is referred below.
A. Unit and project related details:
4. The particulars of the said project are as follow:
S.no
1.

Heads

Information

Promoter- Project name

M/s Jayathri Infrastructures – “Jaya
Platinuim”

2.

Project area

2731.78 sq.yards

3.

Nature of the Project

Residential gated community
1 Stilt + Ground and 5 upper floors.
Total of 60 apartments

4.

HMDA approval

Building

technical

approval

no.

043524/MED/R1/HMDA/25022021,
dated 20.03.2021
Approved by local body vide permit no.
G1/DM/3810/BP/2021

dated

01.11.2021
5.

RERA Registration

P02200003688

6.

Situated

Survey no. 461 part of Bowrampet
Village,

DundigalMunicpality

Mandal,

Medchal – Malkajgiri District

B. Brief facts and submissions of the complainant association are as
follows:
i.

The complainants herein have registered their association and 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:
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P02200003688(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

Malkajgiri

District,

covering

2731.78

Telangana.

This

project

was

sq.

undertaken

Mandal,
yards,
by

Medchal

–

Hyderabad,

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.
iii.

This is a project with a sanctioned plan approved by the local
planning authority, HMDA, on 20.03.2021, and approved by the local
planning body DundigalMuncipality, Medchal –Malkajgiri District 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 TG RERA Project registration webpage, the registration 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

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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.

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.

C. 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 favor 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.

D. 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
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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 plastering 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 abovementioned plan.
E. Observations by the Authority:
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 complainant-allottees have not been
registered as an association, they were directed to register the association in
compliance with the proviso to Section 11(4)(e) of the Real Estate (Regulation
and Development) Act, 2016. The proviso mandates that “the association of
allottees shall be formed within a period of three months from the date when
the majority of allottees have booked their plot, apartment, or building, as the
case may be, in the project.”In the present case, out of a total of 60 flats, sale
7 of 29

deeds have been executed for 48 flats, signifying that the majority criterion
has been fulfilled.
(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
M/s Engineering Staff College of India (ESCI) to inspect the project under
construction “Jaya Platinum”.
9.

Following

the

Authority’s

directions,

M/s

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
aapartment building (1 Stilt + 5 Upper floors) spread over an area of 3267.0
Sq.Yds. in Survey Number 461/P, situated at Bowrampet village, DundigalGandiMaisammaMandal, 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 planning
bodyDundigalMuncipality 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.
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.

December 27, 2023, in response to the submissions made by the

Respondent. In their counter, the Complainants have requested that this
Authority permit them to assume control of the project. Specifically, the
association, of which all Complainants are members, has formally petitioned
this Authority to hand over the project to the association under Section 8 of
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the Real Estate (Regulation and Development) Act, 2016.At the outset, to
address the modified prayer sought by the Complainants, this Authority
notes

the undisputed fact, acknowledged by the Respondent, that

possession of the units was initially to be delivered in July 2022. The
Respondent has further admitted that the project remains incomplete as of
this date, resulting in an extended and substantial delay beyond the original
possession date. Given this two-year delay, the Complainants’ revised prayer
appears to be both reasonable and warranted under the circumstances.
Therefore, this

Authority accepts

the revised relief sought

by the

Complainants, and the association’s request to take control of the project
under section 8 of the RE(R&D) Act is taken under consideration.
(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
9 of 29

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 imposedpenalty of Rs. 50, 00,000/- (Rupees Fifty Lakhs) on M/s
Jayathri Infrastructures for indulging in marketing and advertising in
violation of the section 3 of the RE(R&D) Act, 2016.
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

underRevocation of RERA registration for the project “Jaya Platinum” and to
submit explanation in writing

as to why the Registration should not be

revoked:

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“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:
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 to 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
11 of 29

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 allottees/home buyers of the project.
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:

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

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.



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 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 willcomplete 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
13 of 29

they are still requesting the Authority to hand over the project to the
Association by canceling the RERA registration of the said project.
(d) Registration on Abeyance:
20. This Authority through by an Interim order vide order dated
24.04.2024 issued the following order:
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.

21.

Further, the Authority revoked the Respondent's RERA registration for

the said project, as evidenced by the certificate dated April 30, 2024.
22.

In theaforementioned Interim Order, the complainant association was

granted the liberty to approach this Authority under the relevant provisions
of the Real Estate (Regulation and Development) Act, 2016, with a proposal
outlining the roadmap to ensure the completion of the said project.
14 of 29

23.

The Complainant Association submitted a representation via a letter

dated April 27, 2024, presenting the roadmap for the completion of the Jaya
Platinum project. The representation stated the following:
Pooling Funds:
Funds are being collected from the 44 registered flat owners of the
JP Welfare Association by the first week of June 2024, as
unanimously agreed upon in the General body meeting of JP
Welfare association.
Funds Collection from Mortgage Flat Owners:
The amount required for the completion of the remaining project will
be collected from the mortgage flat owners only once the project
ownership transfer process is completed by Telangana RERA. As
advised by RERA during the final hearing, mortgage flat owners
will be required to bear twice the amount compared to the
registered flat owners for the completion of the project. This step is
crucial to provide assurance egarding the registration of their flats.
Funds can only be collected after the ownership is transferred, and
P Welfare Association obtains the rights to register the flats for
mortgaged owners.
Bank Account Setup:
The newly opened bank account with account number457205000163 and IFSC code- ICIC0004572 for the P Welfare
Association is made operational and ready to receive contributions
from members.
Contractor Selection:
We have solicited quotations from several companies to complete
the remaining construction of Jaya's Platinum project. Among them,
M/S Nagadurga Enterprises, led by Mr. K. Narayana Murthy, has
submitted the lowest quote, which is below the estimate provided
by the RERA ESCI inspection team. Considering the financial strain
on the owners, who are already burdened by full payments and
monthly EMIs, we have decided to engage M/S Nagadurga
Enterprises as the contractor for the remaining construction work.
S.no

Name of the Contractor

1.

Bagadurga Enterprises

Price per sft in Total Quoted
Rs.
amount in Rs.
759
5982600

2.

V R Constructions

899

70796250

3.

AAROHI CASTLES

940

74025000

4.

Architects Developers

965

75993750

5.

Akhil Constructions

1343

1057771000

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/S Nagadurga Enterprises has been confirmed as the contractor for
the completion of the Jaya's
Platinum project, as agreed upon by the association members.
Project Timeline:
Following discussions with the contractor, it has been estimated
that the project's completion will take approximately 6-7 months.
The association has agreed to make monthly payments
corresponding to the quoted amount as the construction progresses.
Once the ownership transfer of Jaya's Platinum project to JP
Welfare Association is completed by Telangana RERA, a detailed
timeline for the completion of remaining construction work will be
prepared.
Discussions with both Telangana RERA and the contractor, M/S
Nagadurga Enterprises, will be initiated to finalize the timelines for
project completion.
Post-Completion Obligations for Unidentified Flat Owners:
During the project progress or post completion of the project, any
owner who claims rights to a particular flat must approach the JP
Welfare Association with supporting documents such as Sale Deed,
Agreement Sale, or Memorandum of Understanding as proof of
purchase. In case of ambiguity in identifying owners, RERA's
assistance will be sought to ensure accurate identification.
Additionally, after the completion of the project, any owner who did
not contribute funds initially will be required to pay the appropriate
amount t the JP Welfare Association to occupy their respective flat.
This ensures equitable participation in the project's completion and
covers the financial obligations of all flat owners involved.
Compliance with Telangana RERA:
We will ensure adherence to all regulations and guidelines
provided by Telangana RERA throughout the project completion
process.
Regular Updates and Communication:
We will maintain regular communication with all association
members to keep them informed about the progress of the project.
We ensure to provide updates to Telangana RERA as required,
ensuring transparency and compliance w regulatory requirements.
Project Oversight and Management: Requesting RERA to establish a
project oversight committee over the JP Welfare Association to
monitor

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progress of the construction work and address any issues or
concerns that may arise. JP Welfare association will coordinate
closely with M/S Nagadurga Enterprises to ensure efficient execu of
the project according to the agreed timeline and quality standards.
Completion and Handover:
Aim to complete the remaining construction work of Jaya's Platinum
project within the specified timelim Plan for a smooth handover of
completed units to the respective allottees upon project completion,
ensuring compliance with all legal and regulatory requirements.
Continuous Improvement
Continuously assess and evaluate the progress of the project,
identifying areas for improvement and taking corrective actions as
necessary to ensure successful project completion.
Association Support and Collaboration:
Foster strong collaboration and cooperation among all association
members, encouraging active participation and support for the
successful completion of the Jaya's Platinum project. This roadmap
outlines the key steps and actions required to proceed with the
completion of the Jaya's Platinum project, considering the decisions
and agreements made by the JP Welfare Association members

24.

Meanwhile, the Complainant Association submitted a comprehensive

proposal outlining the roadmap for the completion of the project.
Additionally, the Association of Allottees provided a general body resolution,
granting their explicit consent to authorize the proposed Contractor(s) to
undertake the remaining development and construction work of the project.
25.

Before initiating proceedings under Section 8, the Authority would like

to state its observations as to why it believes the Respondent is no longer in
a position to complete the project and why it is necessary to invoke Section
8 in the interest of the allottees.
(e) Grounds for Invoking Section 8:
26. The issue that needs to be considered is Whether a case is made put out
for taking action under section 8 of the RE(R&D) Act? In the context it would
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be necessary to examine section 8 of the said Act which is reproduced
herein below for ready reference:
Upon lapse of the registration or on revocation of the
registration under this Act, the Authority, may consult the
appropriate Government to take such action as it may deem
fit including the carrying out of the remaining development
works by competent authority or by the association of
allottees or in any other manner, as may be determined by the
Authority:
Provided that no direction, decision or order of the Authority
under this section shall take effect until the expiry of the
period of appeal provided under the provisions of this Act:
Provided further that in case of revocation of registration of a
project under this Act, the association of allottees shall have
the first right of refusal for carrying out of the remaining
development works.

27.

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

provisions of Section 8 refer to the obligations of the Authority consequent
upon the lapse or revocation of registration. Under these two contingencies,
the Authority is required to take necessary steps. It is conferred with wide
powers under RERA. According to the second proviso to Section 8, in the
case of revocation of the registration of a project, the association of allottees
shall have the first right of refusal for carrying out the remaining
development work. It is submitted by the Association of Allottees that there
is no option but to hand over the project for completion to the Association of
Allottees. This Authority believes that there have been deliberate lapses on
the part of the promoter. The following are the reasons compelling this
Authority to invoke Section 8:
1. The Authority notes that the Respondent has promised different dates
for handing over possession to the allottees, ranging from 2022 to
2023. Despite claims of arranging funds during earlier hearings, the
Respondent Company has not been able to secure funds, as per the
replies and submissions made to this Authority. Despite being given
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two months to submit a valid plan of action for the completion of the
project, the Respondent has failed to provide any satisfactory reply.
2. During the proceedings, the Authority directed 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.
3. As per the RERA registration, the Promoter was obligated to complete
the project by October 2024. However, construction has remained
entirely stalled since December 2022, with no documented efforts by
the Respondent to resume or advance the work since January 2023.
Despite this, the Promoter entered into sale deeds, agreements of sale,
and MOUs with allottees, committing to a handover of possession by
June 2023—a deadline that has clearly not been met.It is evident that
no meaningful action has been taken by the Promoter to restore or
progress the project neither since the time of halt, nor since the
complaints were filed by the aggrieved allottees. Furthermore, the
Promoter has provided only vague assurances to the Authority,
indicating intentions to resume construction but without any
substantive evidence or concrete plans to demonstrate genuine
commitment toward project completion. This continued inaction has
caused considerable distress among the allottees, effectively depriving
them of the rights to the units they were contractually allocated.
4. It is pertinent to note that all projects of M/s Jayathri Infrastructure,
totaling seven, are currently under adjudication by this Authority.
More than 100 complaints have been registered before this Authority
regarding Respondent 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, it is observed that
M/s Jayathri has marketed and 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 from the allottees.

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5. 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 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 TGRERA
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
6. Taking into account the totality of the facts and circumstances, the
Authority

has

determined

that

the

Respondent

Promoter

has

consistently failed to comply with the provisions of the Real Estate
(Regulation and Development) Act. The Authority's evaluation of the
Respondent Promoter’s defaults reveals a pattern of non-performance,
including the complete lack of project initiation over the past two
years, failure to fulfill obligations under Agreements of Sale, Sale
Deeds, or MOUs, and an inability to meet the promised project
milestones.

Moreover,

the

Respondent

Promoter

has

provided

inadequate and unsatisfactory justifications for the utilization of
funds collected from allottees, further undermining trust.
7. Given these extensive defaults and the resulting hardships endured by
the allottees, the Authority finds the Respondent’s assertions
regarding their capacity to complete the project to be without merit.
Consequently, the Authority has revoked the Respondent’s RERA
registration for the said project and formally designate the Respondent
as a defaulter under Section 7 of the Real Estate (Regulation and

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Development) Act, thereby prohibiting the Respondent from engaging
in further construction activities on any projects.
28.

Pursuant

to

Section

8

of

the

Real

Estate

(Regulation

and

Development) Act, 2016, the Authority is vested with broad powers to ensure
the completion of a project through appropriate measures. In certain
instances, the Authority may direct the promoter to either complete or
continue construction, permit the sale of flats, or, if necessary, assign the
completion of the project to the allottees or to a third party as deemed
appropriate, as established in Neelkamal Realtors Suburban Pvt Ltd. vs.
Union of India.In the present case, upon reviewing the aforementioned
grounds, the Authority finds that the Respondent Promoter is evidently
incapable of completing the project in question. The Respondent has shown
a persistent pattern of non-compliance and neglect before this Authority,
having similarly delayed and defaulted on approximately seven other
projects. To date, the Respondent has failed to demonstrate any legitimate
intent to fulfill their obligations or complete any of these stalled projects.
Consequently, the Authority holds no reasonable expectation that the
Respondent Promoter will take corrective action or address these ongoing
violations in good faith.
29.

The Authority, after consideration, observes that the Association of

Allottees is comprised of 49 members out of 60 allottees, nine of flats out of
60 are mortgaged flats in HMDA, and no allottee has come forward claiming
rights over these mortgaged flats. The Association of Allottees has also
submitted explicit consent letters from all 48 members giving their explicit
consent to the Association to undertake the remaining development and
construction work of the project. Also, indicating their willingness to clear
all remaining dues with respect to the flat consideration amount and
providing assurance to contribute additional money required for completing
the project. The Authority observes that the association has demonstrated a
serious commitment to completing the project.

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30.

Having said so, the protection of Section 8 must now be granted to the

allottees of the present project of the Respondent. The Association, having
fulfilled all tasks assigned to it by the Authority, has the right to take over
the project for completion.
31.

In these circumstances, the Authority is of the considered view that

the prayer of the complainants to permit the Association to take over the
remaining construction and complete the project is reasonable and
acceptable based on the various grounds adduced by them in support of
their prayer. Therefore, invoking Section 8 of the Real Estate (Regulation
and Development) Act, 2016, the Authority permits and directs that the
"Jaya Platinum" project shall be carried out by the Association of Allottees
for the remaining construction. The Respondent is restrained from
proceeding further in this project concerning the remaining construction.
32.

The Authority notes that the Association of Allottees has submitted

several tenders from prospective contractors to complete the project.
However, the Authority holds that a formal procedure needs to be carried
out, as elaborated further in the given directions. Following this procedure,
and with the approval of the monitoring committee, the committeeand
association may proceed with awarding the construction contract to the
selected contractor.
33.

In accordance with the mandate under Section 8 of the Real Estate

(Regulation and Development) Act, this Authority has consulted the
Government of Telangana through Letter No. 1269/TSRERA/2023 dated
30.04.2024, and the requisite permission has been granted via Memo No.
5791/Plg.III/2024 dated 22.11.2024, as referenced below:

“Government is hereby permitted the RERA, Telangana to invoke section
8 of the Real Estate (Regulation & Development) Act, 2016 for taking
further action under section 8 of the Act to address repeated defaults
by

M/s

Jayathri

Infrastructures

and

facilitate

the

expeditious

completion of the Jaya Platinum project in the interest of allottees, by
taking up remaining development work which is about 34% of project
Jaya Platinum by the Association of Allottees or by the competent
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authority”

34.

In light of these aspects, the Authority proceeds to pass the following

order:
1. The Authority hereby permits the Association of Allottees u/s 8 of
RE(R&D) Act to take over the project and to achieve completion of the
project within a period of 8 months with a grace period of 6
months, commencing from date of taking over of the project. This
direction of the Authority shall take effect immediately after expiry of
the period of appeal of 60 days provided under the Act.
2. Following conditions/Guidelines apply:
i.

A monitoring committee shall be constituted consisting of officials of
the Authority dedicated to overseeing the project's progress and
construction. This committee shall include an official from the
MA&UD Department, a representative from RDTP Hyderabad, the
Local SRO or their nominee, the Local Tahsildar or their nominee as
nominated by the DRO, an officer from TG RERA, one member
nominated by CREDAI, one member nominated by NAREDCO,
Treasurer and President of Association of Allottees, and one member
from ESCI. Additionally, a concurrent auditor shall be appointed by
the Association to carry out audits on a concurrent basis.The
Convener of the Monitoring Committee shall be the official from TG
RERA. Updates on the committee’s activities and progress shall be
presented to the Authority during its monthly meetings, preferably in
the 4th week of every month.

ii. The association shall not inherit any liability incurred by the
respondent-promoter in the past. Any liability incurred by the
respondent/promoter in respect of the project shall remain the
responsibility of the respondent /promoter only. The Association shall
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take

over

the

project

free

from

all

charges,

liabilities,

or

encumbrances. All demands from local or state authorities against the
respondent-promoter for liabilities incurred before the project's
takeover shall be directed to the respondent-promoter.
iii. The General Body of the Association of Allottees shall form a "Core
Management Committee" (hereinafter referred to as the CMC) within
the Association to oversee the completion of the project. The
committee may include individuals from the Association with relevant
expertise and shall consist of the following positions:
(a)Chairman:

Responsible

for

(b)Treasurer:

Responsible

for

overseeing
managing

the

entire

project.

finances

and

budgets.

(c)Project Manager: Responsible for supervising construction and
liaise with the contractor(s).
(d)Legal Advisor: Responsible for handling legal compliance and
documentation.
(e)Communication Officer: Responsible for engaging with allottees
regularly and communicating important or critical updates to them.
iv. The Association must issue tender notices/invitations for prospective
bidders to undertake construction works for the project. After
receiving tenders, contracts will be awarded to the lowest bidders with
the Approval of the General Body of the allottees. The Association is
advised to prepare proper tender documents in consultation with
subject matter experts, divided into two parts: a technical bid and a
financial bid. Only those bidders who qualify in the technical bid
should have their financial bids opened.

Tender notices and

associated documents must be approved by the Core Management
Committee (CMC) of the Association of Allottees. The tenders should
be opened and evaluated by the CMC, and upon their approval, the
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final recommendations should be presented to and approved by the
General Body of the Association of Allottees. Once approved, the
documents should also be submitted to the Authority.
v. The Core Management Committee (CMC) of the Association of Allottees
shall ensure that each contractor or agency involved in the project
appoints a senior representative who will be available on a regular
basis at predetermined times to provide updates on the progress of the
project and address any concerns raised by the allottees. The contact
details (including phone numbers and email addresses) of the
appointed representatives shall be made available to the allottees and
prominently displayed on a permanent notice board at the project site.
These contact details shall also be submitted to the Authority for
record-keeping.
vi. The Authority clarifies that, before awarding tenders, at least 25% of
the total funds required for project completion should be collected and
placed into the association's project escrow account. This ensures a
smooth flow of construction once work begins. The balance sale
consideration for customers with executed agreements of sale/MOUs
shall be collected and managed by the association.
vii. The Association shall open a separate escrow account for the project
at a scheduled bank for the purpose of managing the project's
finances. All funds received from the allottees or from any other
source for the project shall be deposited into this separate account.
These funds shall be utilized exclusively for the work related to the
construction and development of the project and for any other
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expenditure

directly

associated

with

the

development

and

construction of the project.
viii. The respondent shall initiate the refund for cancelled units by the
initial allottees within 120 days of receiving this order or upon receipt
of proceeds of resale of cancel unit whichever is earlier. The
association of allottees shall utilize the sale proceeds from open sale
cancelled units for project completion.
ix. Vacant apartments shall be auctioned, with proceeds credited to the
association's account for project construction.
x. Any liability on sold units, including title transfer, shall remain the
responsibility of the respondent/promoter.
xi. The Association must maintain meticulous records of income and
expenditure. Statements of all monthly receipts and payments shall be
presented before the General Body of the Association of Allottees in its
monthly meeting. The association's escrow bank account shall be
operated

through

joint

signatures

of

two

nominated

persons,

authorized by the General Body of the Association.
xii. All receipts from any source must be credited to the designated bank
account of the association.
xiii. All works contracts/tenders valued below Rs. 10 lakhs shall be
presented to the Core Management Committee (CMC) for approval.
Contracts/tenders exceeding Rs. 10 lakhs shall be presented to the
General Body of the Association of Allottees for approval. General
Body meetings may be held as often as necessary, but not less than
once every six months
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xiv. All payments should be approved by the Governing Body of the
respective association.
xv. The association is free to deal with non-member or non-paying
allottees at their discretion. Decisions in this regard should be made
in the General Body meeting of the association.
xvi. The respondents, at any stage prior to awarding contracts for
construction to successful bidders, are free to arrange funds and
demonstrate their capability to complete the project before the
Authority’s monitoring committee. The Committee will consider such
requests, and an opportunity will be given to the respondent's
company to deposit requisite funds in a dedicated account for project
completion.
xvii.

All development and construction works shall take place in

accordance with plans approved by the relevant departments of the
State Government.
xviii.

The Association shall approach the concerned competent

regulatory/statutory

authorities

for

seeking/renewing

such

permissions/approvals for completion of balance development work
and for handing over possession of units to allottees as may be
required.
xix. The Association will be bound by the terms and conditions of the
existing and future agreements for sale, barring the payment of
penalties and compensation to the allottees, if any, and shall be
responsible for completion of the project within the stipulated time.

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xx. No Allottee of the Project who has submitted their consent to this
Authority shall have the right to complain against the Association for
any defaults of the promoter, M/s Jayathri Infrastructures Pvt. Ltd.
The Allottees will not be allowed to withdraw from the project, and if
they do, the Association will not be under any obligation to repay the
money deposited by them. Furthermore, allottees will be under
obligation to pay the amount consented to by each allottee for the
completion of the project.
xxi. No charge/Security or any other arrangement with any third party,
other than as contemplated herein, shall be made without prior
approval of this Authority.
xxii.

The Association and its office bearers shall be individually and

jointly responsible for compliance of this order and all relevant
provisions of RE(R&D) Act, TG RE(R&D) Rules and Regulations and
the provisions of all other relevant Acts and rules including
maintenance of financial discipline and proprietary.
xxiii.

The monitoring committee will suitably guide the Association

and appraise the Authority about the status of the project from time
to time. The Authority will monitor the progress of the Association on
a

monthly

basis

duly

examining

all

aspects

including

the

proceedingsof General Body monthly meetings.
xxiv.

The Association, after completion of the project, shall apply to

the competent authority for Occupancy certificate as provided under
the local laws.

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xxv.

The respondent M/s Jayathri Infrastructures Pvt. Ltd is directed

to pay Rs. 3,54,000/- (Three lakh fifty four thousand rupees) to the
Authority as expenses incurred for conducting a forensic audit.
xxvi.

It is clarified that the project has been handed over to the

association free from liabilities and encumbrances. All liabilities and
encumbrances upon the project before the date of this order will
remain the responsibility of the respondent-company. Loans raised
from financial institutions, dues payable to the state government,
other liabilities towards suppliers, contractors, financiers, and the
general public shall continue to be the liability of the respondentcompany, and the association will have no responsibility for
discharging those liabilities.
xxvii.

The respondent shall immediately hand over possession of the

project to the Association. Details of available inventory shall be
prepared at the time of handing over, and detailed handing over and
taking over notes should be exchanged by both parties. Respondents
are hereby prohibited from interfering in the available assets and
inventory of the project.
xxviii.

A copy of this order is sent to DTCP Hyderabad and Police

Authorities and District Collector, MedchalMalkajgiri to provide
security to the Association for taking over the project if they feel
necessary.

SdSri. K. Srinivas Rao,
Hon’ble Member
TG RERA

SdSri. Laxmi NaryanaJannu,
Hon’ble Member
TG RERA

SdDr. N. Satyanarayana, IAS (Retd.),
Hon’ble Chairperson
TG RERA

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