Order Complaint No. 1786 of 2023

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.1786 OF 2023
3rd day of March, 2025
Corum:

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

M/s Coconut Grove Flat Owners Maintenance Mutually
Aided Co-operative Society Limited
…Complainant(s)
Versus
M/s RDB Hyderabad Infrastructures PVT.Ltd
Sri Raja Sekhar Reddy
…Respondent(s)
This present complaint, came up for hearing on 08.11.2024 before us
for hearing in the presence of Counsel Kirthi Teja Kondaveeti for the
complainant and Counsel Venkata Laxmi for the Respondents and upon
hearing both the arguments on both sides and the matter reserved over for
the consideration till this date, this Authority passes the present complaint
order.
ORDER
2.

The complaint has 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"), alleging
commission of violation and contravening of the provisions of the said Act and
Rules and sought for the appropriate reliefs against the Respondent.
A. The Brief facts of the case of complaint as per allegations/averments
contained in the complaint are as follow:

3.

Complainant submit that Coconut Grove Flat Owners Maintenance

Mutually

Aided

Cooperative

Society

Limited

was

incorporated

under

Telangana Mutually Aided Cooperative Societies Act in the year 2022 for
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looking

after

welfare

of

the

Flat

owners

of

the

Coconut

Grove

Apartment/Residential Flats. There are more than 500 members who are
registered under the Society.
4.

The members of the Society purchased Flats in RDB Coconut Grove

Apartment having purchased the same through various Sale Deeds executed
by the Builder as well as the land owner.
5.

That the members of the Complainant Society have invested huge

amounts for the purchase of the Flats. At the time of purchase of Flats
various facilities were promised by the Builder. On the assurance given by the
builder, the members of the complainant society purchased the flats in RDB
Coconut Grove by investing huge amounts. However, after purchase of the
flats till date most of those promised amenities were unfilled till today.
6.

That there are more than 6 Towers which are constructed by the

Builder/Promoter in the said site. Two more Towers are under development.
However, despite completing construction of more than 6 Towers still there
are many unfinished works in the said Townes. Though the Society have been
requesting the Builder/Promotor to complete the facilities/amenities as
promised, however, till date those promises/facilities were not completed.
7.

That the Builder/Promotor as promised to construct a club house,

central park, outdoor GYM equipment, furniture in the lobby area, to provide
RO water purification system, to provide Manjeera water connection, to
provide fire safety systems etc. etc. However, till date none of the said
amenities that were promised were not at all completed.
8.

It is necessary to submit here that the construction of the said project

ought to have been completed by 2015 itself. However, till date the
construction is still pending. Further it is submitted that in all the Blocks
there is provision for construction of 3 lifts. However, the Builder/Promotor
has installed only two lifts and has left open the place for construction of 3rd
lift without any safety. There are children who are playing in the residential
building and their safety is at risk because of not completing the installation
of 3rd lift in all those blocks.
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9.
in

It is further submitted that bringing the above said defects/drawbacks
the

construction,

the

Complainant

society

has

been

making

representations to the Builder/Promoter to complete the said promised
amenities without any delay. The Complainant society even recently made
representations on 05-07-2023 & 30- 08-2023, however, till date no action
has been taken on the said representations.
10.

It is submitted that the members of the Complainant society have

invested huge amounts and have occupied the said building also. However, till
date, the project is not yet completed and many of the promised amenities are
still not completed. Further, it is submitted that the Builder/Promotor has till
date not obtained RERA registration in spite of the project not being
completed before the Act came into force. Therefore, we request the authority
to make sure that the builder/promoter provide the following amenities which
were promised to the members of the society as early as possible;
11.

Status of amenities which were promised to be provided by the builder:

S.no

Amenities
promised by the
builder
Lifts

1.

2.
3.

4.

Status and remarks

The builder promised to provide 3 lifts in all the towers.
However only 2 lifts are provided and the provision for
3rd lift is left opened. There are safety concerns as the
lift provision is left open without any safety measures.
Central Park
Not yet constructed though promised by the
builder in the broacher
Manjeera
Water Though the builder promised to provide Manjeera
connection
water connection to all the residential flats however till
date only 360 flats have received Manjeera water
connection though more than 500 flats are in
occupation in the building premises. Because of not
providing Manjeera water connection to all the flats,
the Society association is paying more as the water
usage as crossed the ceiling limit provided for the 360
connections.
Diesel Generators
In the newly constructed blocks of Daffodil and Rose
blocks (towers 5 and 6) the builder installed old and
outdated diesel generators because of which the
generators are not functioning properly. They are
continuously put to repair and since the generators are
outdated, the warranty for the said generators is also
expired and the Society association is bearing all the
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5.

6.
7.
8.
9.

10.
11.
12.

13.
14.
15.
16.
17.
18.

expenses for the said repairs though they are installed
recently.
Club house
The builder has promised to provide modern club
house with facilities including spa, gymnasium, yoga
room, banquet hall, massage centre, library etc., till
date the club house is not yet constructed. Contrary
the builder to please the flat owners has allotted
temporarily one flat each in the residential towers for
indoor games, one flat for gymnasium and one flat to
be used as banquet hall. The said facilities are also not
upto the standards as promised by the builder.
Jogging Track
Not yet constructed though promised by the builder in
the broacher
Visitors Lounge
Not yet constructed though promised by the builder in
the broacher
Landscape
Not yet constructed though promised by the builder in
Gardens, fountains the broacher
and cascades
Basketball
Basketball court and pool table were promised by the
builder in the broacher, however only temporary
multipurpose court is constructed with one side
basketball net is installed and on the otherside a small
shuttle court is erected.
Mineral Water Plant Not yet constructed though promised by the builder in
the broacher
Gas Pipelines
Not yet constructed though promised by the builder in
the broacher
Fire Safety
Fire safety equipment is not installed in the latest
constructed blocks of Daffodil and Rose (towers 5 and
6). In the first constructed blocks of Jasmine, Tulips,
Marigold and Lotus though the fire safety equipment is
installed however no proper testing was conducted
before handing over the towers
Swimming Pool
Not yet constructed though promised by the builder in
the broacher
Mini Theatre
Not yet constructed though promised by the builder in
the broacher
Guest Rooms
Not yet constructed though promised by the builder in
the broacher
Creche
Temporarily one flat is given for utilization of the
members of the society for crèche. However the builder
is collecting rent for the said flat from the association.
Visitors Parking
Visitors' parking is not provided till date.
24x7 security
IP based CC cameras insisted but the builder has
provided only Analog based cameras and without
proper coverage especially there is no coverage in
basements (cellars) 1 and 2. Also centralized
monitoring and equipment has not provided by the
builder.

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19.

Sewage Treatment Sewage Treatment Plant is not properly tested and the
Plant (STP)
complete handover is not yet given.

12.

Though the builder has constructed and handed over possession of flats

in 6 (six) towers i.e., Jasmine, Tulips, Marigold, Lotus, Daffodil and Rose.
However, there are many defects which the builder is not responding to
inspite of repeated requests made by the flat owners. The defects in the
project are as follows:
S.no

Defects/Problems
faced by the flat
owners

1.

Seepage
leakage

2.

3.
4.

5.

6.

Remarks

issues In case of rains there is seepage from the walls and
there is water logging in the cellar. Even for very
small rains there is water logging in the cellar.
Because of seepage the structural integrity of the
building would be damaged.
Water proofing on top Proper water proofing is not done on the top floor of
floor
each tower. Because of that there is water leakage
and dampness on the top floor. On one occasion
because of water seepage from the top floor, a false
the said incident till date no action has been taken
by the builder to rectify the said defect.
Water logging in lift Because of seepage issues there is heavy water
pits
logging in the lift pits whenever there is rainfalls.
Poor
electrical The builder has not provided proper electrical
Infrastructure
infrastructure because of which there are heavy
fluctuations in the electrical supply and as a result
the appliances are getting damage. Due to this there
are lot of power outages from last few years due to
which society runned through Diesel Generator and
spent huge amount(40 lakhs plus) for diesel. No
action has been taken by the builder for rectifying
the said defect.
Secondhand/
used In the newly constructed blocks of Daffodil and Rose
outdated
diesel blocks (towers 5 and 6) the builder installed old and
generators installed in outdated diesel generators because of which the
towers Daffodil and generators are not functioning properly. They are
Rose
continuously put to repair and since the generators
are outdated, the warranty period for the said
generators is also expired and the association is
bearing all the expenses for the said repairs though
they are installed recently.
No compound wall for There are safety concerns as the building has no
building
boundary wall/compound wall which is constructed
by the builder till date. Because of the opening the
safety and security of all the flat owners is at risk.
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7.

Continuous
moments

vehicular

8.

Common Area Power
Billing title change
from builder to Society

9.

Automatic
system for
tanks

10.

External
painting

Valve
overhead

Walls

Street dogs, snakes are freely entering the building
premises as there is no boundary wall.
The builder has undertaken to complete the
construction of all the 8 towers by 2015 itself.
However till date the construction is not yet
completed though the occupation in first four towers
is completed early because of non-completion of the
project in full shape there is heavy vehicular
moment because of which the flat owners are put
continuous sound pollution and also air pollution.
Till now, the builder could not provide the required
documents for the change of the common power
billing name to the society name. It's still under the
commercial category, so we need to change from the
2A to the 6A category, which is residential. We are
paying 30% extra power bills every month.
Builder has not given proper setup and not
handover with working conditions related to
automatic cutoff for overhead tanks. Because of
manual ON/OFF there is overflowing of water from
overhead tanks sometimes which is also related to
both staff efforts as well as affects Manjeera water
bills.
Due to prolonged construction activities, four blocks
(Jasmine, Lotus, Tulips, Marigold towers) are
affected with dust and it lead to damage to painting
and builder supposed to take up this activity.

B. Relief Sought:
13. (a) The Regulatory Authority may issue directions to Builder/Promoter
to complete the following amenities i.e.,
1. Lifts
2. Central Park
3. Manjeera Water Connection to all the flats
4. Diesel Generators
5. Club House with the amenities of Yoga, Massage Centre, Business
Centre, Library, Coffee Shop, Indoor Games, Gymnasium, Banquet Hall,
Laundry
6. Jogging Track
7. Visitors' Launge
8. Landscape Gardens
9. Basketball
10.
Mineral Water Plant
11.
Gas Pipelines
12.
Fire Safety
13.
Swimming pool
14.
Mini Theatre
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15.
16.
17.
18.
19.

Guest Rooms
Creche
Visitors' parking
24x7 security
Sewage Treatment Plant (STP)

(b) Further the Hon'ble Authority may be pleased to direct the builder
/promoter to rectify the following defects in the building i.e.,
a) to rectify the seepage issues / leakage,
b) to undertake water proofing on top floor,
c) to make sure that there is no water logging in the lift pits,
d) to replace the poor electrical infrastructure with good quality
e) to replace the second hand /used/outdated diesel generators installed
in towers Daffodil and Rose with new diesel generators of best company,
f) to take steps to immediately construct compound wall for the building,
g) to take steps for change of the common power billing name to the
society name
h) to take steps to install automatic cutoff valve for overhead tanks.
i) and pass such other order or orders as this Hon'ble Authority deem fit
and proper in the circumstances of the case.
C. Interim order
a) to rectify the seepage issues/leakage,
b) to undertake water proofing on top floor,
c) to make sure that there is no water logging in the lift pits,
d) to replace the poor electrical infrastructure with good quality,
e) to replace the secondhand / used / outdated diesel generators installed
in towers Daffodil and Rose with new diesel
f) to take steps to immediately construct compound wall for the building
g) to take steps for change of the common power billing name to the
society name
h) to take steps to install automatic cutoff valve for overhead tanks.
D. Respondent Reply:
14.

This is to submit that the complaint filed by the complainants is not

maintainable. The permission obtained by the builder/developer is on
24.04.2013 vide File No. 1523/06/01 /2011 permit No. 15910/HO/WZ/Cir12/2011. The Act clearly says that the applicability and commencement of
Act, Telangana Real Estate Regulation and Development Act, which reads as
follows:

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i) "These rules may be called Telangana State Real Estate (Regulation &
Development) Rules, 2017.
ii) "These rules are applicable to all the real estate projects whose
building permission approved on or after 01.01.2017 by the competent
authority

viz;

UDAs,/DTCP/Municipal

Corporations/Municipalities/Nagar TSIIC Panchayats/ They shall come
into force from the date of their publication in Telangana Gazette.
iv) The Government of Telangana vide GO Ms. No 202, dated
31.07.2017 vide its order issued Gazette Publication and Notifications.
The orders clearly says the appeal notification will be published in
Telangana Gazette dated 04.08.2017.”
15.

Hence it is submitted as the building permission is much prior to

01.01.2017 i.e. building permission on 24.04.2013 this application cannot be
entertained as the permission is much prior to commence date. This Hon'ble
Court has no jurisdiction to entertain this complaint as the permission was
sanctioned in the year 2013.
16.

However, to answer as prudent builder/developer, it is felt that to

answer the allegations which are false made by the complainant. In reply to
Para no.1 no explanation is required. However, they are put to strict proof of
the same. In reply to Para no.2, it is submitted that members of the
Complainant society have approached the respondents with an intention to
purchase flats and on totally satisfying about the title, documents, sanction
plans, permissions placed before them have come-forward to purchase flats,
having satisfied about the sale price of the flat indicated and no huge
amounts are collected from the members. In reply to Para no.3, it is
submitted that the respondents have obtained permission for construction of
8 Towers and 6 Towers have been totally completed in all respects as per the
specifications agreed and possession has been delivered to the respective flat
owners and flat owners have taken over possession of flats having totally
satisfied about the quality of construction and completion of the specifications
provided. As on the date of handing over possession to the flat owners of

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respective blocks all the works are completed and no pending works and the
flat owners are enjoying the possession of their respective flats.
17.

It is submitted that the Respondents as per the sanction plan and

permission have commenced the construction of club house in the area ear
marked in the sanction plan, but unfortunately the neighbouring land owner
i.e.. Government claimed that there is overlap and obstructed for further
construction and the dispute is pending and the respondents have already
approached the Hon'ble High Court State of Telangana Writ Petition No. 1572
of 2020 (copy of the order is filed as Annexure-II) and obtained status-quoorders, the respondents have already completed the construction of cellar,
ground floor level columns and at that stage dispute arose from the revenue
department and due to status-quo-order construction could not further
carried-out. However, the respondents have alternatively provided all the
agreed facilities of club house, gym equipments in an alternative place such
as 4flats belonging to the respondents. The complainants are already running
their association office, games room, function hall and space for cultural
activities provided temporarily in the said area. As Manjeera Water Supply is
already provided no necessity of RO Purification System is required. Fire
Safety System as per Fire Safety Department is provided. And all the
amenities as per specification and brochure are provided.
18.

it is submitted that out of 8 blocks, 6 blocks are already completed and

handed over possession to the respective owners of each block without any
pending works. With regard to other 2 blocks, it is nearing completion. With
regard to provision of 3 lifts, 3 lifts have been ordered and the company has
delivered 3 lifts. At that stage, the flat owners requested not to install the 3rd
lift as they wanted not to install the lift from 2nd cellar to the upper floors and
wanted the operation of the lift from the upper cellar. As the lifts are already
ordered, at the request of the flat owners to operate the 3rd lift from the
second cellar due to problem in the rainy season and at their request the
installation of the 3nd lift was stalled and waited for their confirmation for 1
year. However, to operate from 2nd cellar, a separate lift needs to be ordered.
Hence, already delivered lift was returned and willing to install the 3rd lift
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from the 2nd cellar as per the request of the flat owners. There is no
deficiency from the part of the respondents its only at the request of flat
owners, the installation of 3rd lift was with-held. The photographs produced
with regard to provision of third lift area are very old photographs. All the
safety measures to close the third lift area, which was earlier open due to non
installation of third lift and the request of flat owners. The photographs of the
closure of the open area are filed as Annexure III which clearly shows that
necessary safety measures are taken.
19.

It is submitted that as and when some minor issues arose and at the

request of the flat owners/association/society the respondent attended all the
minor complaints and there are no pending works as alleged, all the minor
complaints are already attended. A copy of the complaint and response from
the respondents in completing the works and their acknowledgment of the
respective complainants have been enclosed herewith. Copy of the complaint
and work attended and signature of parties.
20.

it is submitted that flat owners have paid the agreed amount on

satisfying the price and cost of the flat and no huge amounts as alleged by the
flat owners have been collected. Only on willingness and satisfied about the
cost of the flat, the flat owners purchased flat from the respondents and all
the works and specifications have been completed and no pending works.
Over and above, the agreed specifications, the respondents have provided a
stage for the cultural activities in the open area, additional second swimming
pool which is nearing completion and other amenities have been provided over
and above agreed specifications.
21.
S.no

1.

Amenities Agreed
Lifts

2.

Central Park

Remarks of the Respondent
3 Lifts agreed to be provided. However, only at the
request of flat owner's 3rd lift installation was
withheld as they required, the operation of 3rd lift
from second cellar, hence, the earlier ordered lift
which is delivered has to be returned and new 3rd
lift
shall
be
provided.
Flat
owners
and
association/society are already aware of the facts.
As per our specification and brochure, there is no
provision of construction of stage/dais, only
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3.

Manjeera Water

4.

Diesel Generators

5.

Club House

6.

Jogging Track

greenery need to be provided in the central park.
However, at the request of some of the members,
dais/stage in the central park is also being provided
and due to difference among the members the
construction is getting delayed. If all the members
have a common consent and official confirmation
from the association letter we shall complete the
construction of central park. A photograph of the
Central Park area and dias on stage provided
Manjeera water facility has been already provided as
per the sanction plan and permission issued by the
authorities. Presently, there are certain changes
with regard to provisions of water connections as per
new sanctions which we are not concerned. The
respondents are liable only to provide water
connection as per the sanction plan. However, at the
time of completion of total project the respondent
also shall consider their request of the association
subject to feasibility in-fact the respondents has no
responsibility w.r.t. to the unreasonable demand of
the association members.
All generators as agreed have been provided w.r.t.
performance of the generators at the company level,
the respondents got it tested for performance and
the same was brought to the site for installation. The
members are under impression that it is old
generator but in-fact the said generator is brand
new generator which was got tested-ok for its
performance. In-case, it is to be replaced sufficient
time is given we shall replace with another
generator.
As explained above, the place earmarked for club
house as per sanction plan is under dispute with the
revenue authorities that there is over lap and
portion of their area is within our premises. Already
approached Court the dispute is pending and
waiting for favourable orders.
Alternative club area is provided by providing all the
amenities of the club house with gym area. Already
all the flat owners are utilizing the club house
facilities in the temporary area already provided.
The cost the temporary area provided for club house
is much more i.e., double the cost of club house if
constructed, the respondents are in loss as the
temporary area which is provided, could not be sold
as to accommodate the association members for
temporary club house.
Alternative facilities provided in temporary club
house
Jogging Track already completed. Members are
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already using the same and there is regular walkers
in the walking track and the photographs are
enclosed for reference
Visitors Lounge
Visitors lounge is provided in the temporary club
house and guests are already utilizing the same.
Landscape
garden, Landscape Garden, Fountains and cascade is
fountains and cascade already been provided
Basketball
There is no specification agreed for Basketball
provision. However, Basketball court has already
provided and the members have converted the
basket ball court to net-cricket practice and shuttle
courts and other play areas. There is no fault of the
respondents
Mineral Water Plant
As Manjeera water supply has already been
provided, and no bore water or ground water
required as such mineral water plant is not
necessary
Gas Pipelines
There is no specification or promise for providing
Gas Pipelines
Fire Safety
Fire Safety measures have already been provided as
per the requirement of the fire services dept.
Swimming pool
Swimming pool need to be provided in the club
house as the matter is under litigation w.r.t.
construction of club house alternative swimming
pool is being constructed which is nearing
completion
Mini
Theatre/Home Mini Theatre/ Home Theatre Room shall be provided
Theatre Room
at the time of construction of the club house on
clearance of the dispute
Guest Rooms
Guest Room can be constructed after clearance of
dispute w.r.t club house as it needs to be provided
in the club house.
Crèche
Creche is already provided which is already under
usage by the members.
Visitors Parking
Visitors Parking is provided.
24x7 security
As per specifications agreed CC Cameras provided
Sewerage
Treatment Sewerage Treatment Plant is provided and the same
Plant
is under usage by the members.

7.
8.
9.

10.

11.
12.
13.

14.
15.
16.
17.
18.
19.

22.

It is true that the respondents have completed 6 blocks and totally

occupied by the flat owners and remaining 2 blocks nearing completion and
many of the flat owners have occupied their respective flats. All the works
brought to the notice of the respondents have been completed no pending
works.
23.

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S.no

1.

Defects/Problems alleged by
the flat owners
Seepage issues/leakages

2.

Water proofing on top floor

3.

Water logging in lift pits

4.

Poor infrastructure electrical

5.

Secondhand used outdated
diesel generators installed in
Daffiodil and Rose towers

6.

No compound
building

7.

Continuous
movements

8.

Common area power billing title
change from builder to society

wall

of

vehicular

Automatic valve system
overhead tanks
10. External wall painting

9.

the

for

Remarks
Earlier only at one instance there was a
small seepage which was rectified and small
loss caused to the flat owner has been
compensated and thereafter no complaints
of leakages.
Water proofing has been provided on
consultation with water proofing expert.
Hence, no pending work. As explained
above, a small problem w.r.t. leakage in 1
flat has been rectified and compensated the
small damaged caused. Hence, no pending
work
I lift need to be provided as and when water
due to rain is already been removed and
sufficient water proofing is provided. Hence,
no damage or loss. However, 3rd lift will be
provided at the earliest.
Electrical infrastructure has been provided
as per specifications, if any fluctuations its
only because of high voltage from electricity
department and no fault of the respondents
and they are not concerned w.r.t. high
voltage
As explained above, only tested new
generator for performance has been
installed. But it is brand new not old or
outdated. If required alternative generators
will be provided subject to providing time.
Compound wall is constructed except a
small portion due to dispute with the
revenue department. However, necessary
precautions have been taken for safety.
The vehicles which are coming inside for
completion of the other 2 blocks and no
vehicle is passing within the community and
no disturbance is caused. The construction
will be completed at the earliest.
Earlier, the power connection and common
area is obtained in the name of the
respondents. It is for the association/society
for change of name any authorization or
support for change of name required shall
be provided.
Automatic valve system is already provided
It is Painted and given to flat owners at the
time of handing over. It is more than 5 years
the respective owners blocks are enjoying
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any further paintings it is the responsibility
of the members and the association.

24.

It is further submitted that the complainants have made false

allegations w.r.t. works carried-out by the respondents and in-fact all the
works are completed.
25.

It is submitted that sufficient Manjeera water has already been provided

to 6 towers flat owners with regard to remaining 2 blocks towers which are
nearing completion the required water facility for the remaining 2 towers shall
also be provided.
26.

It is submitted that providing old diesel generator as alleged is not true.

As explained new ok- got tested branded for performance is installed.
However, if the flat owners require providing another diesel generator shall be
provided if necessary and time is given to the respondent.
27.

It is submitted that completion of club house is pending due to dispute

w.r.t. revenue department with false allegation of over lapping a small portion
of land. The matter dispute is pending before the Hon'ble High Court.
Alternative club house is provided and it is already under usage. Once the
dispute is cleared the club house shall be constructed.
28.

It is submitted that swimming pool the same is required to be provided

in the club house area. It is pending due to dispute with revenue department
as stated above. However, alternative swimming pool is provided which is
nearing completion which shall be for usage very shortly.
29.

It is submitted that w.r.t. club house already explained above provide

alternative function hall/banquet hall in temporary club house provided and
members are using the alternative banquet hall which is provided temporarily
club house and members have utilized and conducted functions in the said
banquet hall. Further, there is sufficient space in the cellar inspite of
providing sufficient parking space and the respondents are willing to provide
club house temporarily facilities in the additional area in the said additional
space of 1 cellar, if members require if required and given consent by the
members till the completion of club house.
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30.

it is submitted that w.r.t. the building is completed as per the plan and

as such there is no problem w.r.t. shifting of electricity connections in the
name of the flat owners/associations and the respondents are willing to give
consent letters for change of name at the cost of the flat owners/association.
31.

The respondent denies for payment of any compensation as alleged and

falsely claimed by the complainants’ in-fact the building is totally completed
and there are no pending works.
32.

Hence, the Hon'ble Authority dismisses the complaint given by the

complainants with false allegations with exemplary costs.
E. Rejoinder:
33.

The preliminary objection raised by the respondents with regard to the

maintainability of the complaint is that the complaint is not maintainable as
per TS RERA Rules 2017 as the building permission was obtained prior to 11-2017 and thus the same would not come within the purview of RERA is not
true and denied.
34.

It is necessary to submit here that Sec.3 of the Real Estate Act,2016

reads as follows:
"Prior registration of real estate project with Real Estate Regulatory
Authority (1) No promoter shall advertise, market, book, sell or offer for
sale or invite persons to purchase in any manner any plot, apartment or
building, as the case may be, in any real estate project or part of it, in
any planning area, without registering the real estate project with the
Real Estate Regulatory Authority established under this Act.
Provided that projects that are ongoing on the date of commencement of
this Act and for which the completion certificate has not been issued,
the promoter shall make an application to the Authority for registration
of the said project within a period of three months from the date of
commencement of this Act.
Provided further that if the Authority thinks necessary, in the interest of
allottees, for projects which are developed beyond the planning area but
15 of 52

with the requisite permission of the local authority, it may, by order,
direct the promoter of such project to register with the Authority, and
the provisions of this Act or the rules and regulations made thereunder,
shall apply to such projects from that stage of registration.
(2)

Notwithstanding

anything

contained

in

sub-section

(1),

no

registration of the real estate project shall be required (a) where the area
of land proposed to be developed does not exceed five hundred square
meters or the number of apartments proposed to be developed does not
exceed eight inclusive of all phases: Provided that, if the appropriate
Government considers it necessary, it may, reduce the threshold below
five hundred square meters or eight apartments, as the case may be,
inclusive of all phases, for exemption from registration under this Act;
(b) Where the promoter has received completion certificate for a real
estate project prior to commencement of this Act,
(c) for the purpose of renovation or repair or re-development which does
not involve marketing, advertising selling or new allotment of any
apartment, plot or building, as the case may be, under the real estate
project. Explanation. For the purpose of this section, where the real
estate project is to be developed in phases, every such phase shall be
considered a standalone real estate project, and the promoter shall
obtain registration under this Act for each phase separately.
35.

According to the proviso to above Section 3 of the Act, it is clear that all

the ongoing projects on the date of commencement of the Act for which
completion certificate has not been issued, the Promotor shall make an
application before the authorities for registering the said project within 3
months from the date of the commencement of the said Act. In this case, the
Builder/Promoter

has

not

completed

the

construction

nor

obtained

completion certificate from the concerned authorities even till date. Therefore,
as per the said Act the Builder/Promoter is under the obligation to get the
project registered with the TS RERA. Whereas the respondent is relying upon
the TS RERA Rules 2017 which were framed by virtue of dedicated legislative

16 of 52

powers conferred through the Real Estate Act, 2016. The Hon'ble Court in
various cases held that in case of conflict with the Act and the Rules, the Act
shall prevail. Therefore, the preliminary objection raised by the respondent
with regard to maintainability of the complaint would not be sustained in view
of the proviso to Sec.3 of Real Estate Act 2016.
36.

It is submitted that the complainant herein has filed the above

complaint only to make sure that the Promotor/Builder would complete the
amenities which were promised to the members of the society. As already
submitted

in

the

complaint,

there

are

safety

issues

which

the

Builder/Promotor has failed to respond in spite of repeated requests. Having
left with no other option, the complainant herein has filed the above said
complaint before the authority seeking a direction to the builder/promoter
who complete the amenities which were promised to them.
37.

It is necessary to submit here that the respondent herein has now come

up and stated that there is a title dispute with regard to the property as such
he was unable to carry out construction of club house. It is necessary to
submit here that as per Section 18 of the Real Estate Act, 2016, in case there
is a loss caused to any person because of defective title on the land, the
promoter shall compensate the allottees in case of loss caused to him due to
the defective title. The respondent herein having been fully aware that he was
supposed to pay compensation in case the above said title dispute is known to
the members of the complainant society has been hiding the said fact without
intimating the same to the complainant society herein. The further allegation
in the counter fled by the respondent that he has fulfilled all the amenities
and has no other things which needs to be attended by the respondent is not
true is herewith denied.
38.

The detail reply to the remarks submitted by the respondent to each

problems is as follows:-

17 of 52

S.no

Amenities Agreed

Remarks of the

Reply to the remarks

Respondent

submitted by the
Respondent

1.

Lifts

3

Lifts

agreed

to

be The allegation that the

provided. However, only Flat owners requested
at the request of the flat 10
owner's

3rd

was lift
as

is

lift

from

not

true

is

they herewith denied. The

required the operation of Flat
3rd

the

lift installation of the 3d

installation
withheld

withhold

owners

were

second accepting all the things

cellar, hence, the earlier which the respondent
ordered
delivered

lift

which

has

to

is builder was ready to
be give it to them. They

returned and new 3rd never

requested

for

lift shall be provided. withholding
Flat

owners

the

and installation of the 3rd

association/society

are lift.

During

already

the rains,

the

facts.

aware

of

area

heavy

basement

was

waterlogged.
point

of

fully
At

that

time

we

requested the Builder
to rectify the seepage
issues and then install
the lift. Taking that as
advantage,

now

he

cannot shift the blame
on

the

flat

owners

that

they

saying
required

the

installation

from

Basement.

As

1

seen
18 of 52

from

the

Complaint

submitted

by

the

complainant it can be
seen

that

complaints

the

all

the

while were requesting
for installation of the 3
lift. Without installing
the

3

lit

temporary

closures

are

place

which

put

in
was

dangerous as the lift
provision

was

open

without

any

safety

measures. After filing
of the complaint before
this

authority,

respondent

has

now

closed the t provision
without

taking

any

step for installing the
lift. Our only endeavor
is to see that the 3rd
lift is provided as soon
as possible.
2.

Central Park

As per our specification The

allegation

with

and brochure, there is regard to construction
no

provision

of of stage/dais in the

construction

of central

stage/dais,
greenery

need

park

or

only greenery is one and the
to

be same. The respondent

provided in the central herein

promised

for

19 of 52

park. However, at the construction
request of some of the area

of

park

without

any

members, dais/stage in permanent

structure

the central park is also in it. However, till date,
being provided and due no such activity had
to difference among the been taken and the
members

the central

area

construction is getting upon
delayed.

If

all

without

have

a been

common

consent

and and

official

confirmation complete
the

left
any

the construction. We have

members

from

is

communicating
requesting
the

to

central

association park area as early as

letter we shall complete possible. However till
the

construction

central park

of date, the respondent
has

not

taken

any

steps for construction
of central park. The
other

allegation

the

that

members

requested

for

construction

of

dais/stage is only at
the end of the park so
as

to

conduct

programmes

in

the

park area that will not
have

any

effect

delaying

the

construction
central

for

of

the

park.

The

respondent

is

only

20 of 52

taking advantage and
trying

to

shift

the

burden without taking
any

steps

for

construction

of

the

central park area.
3.

Manjeera
connection

Water Manjeera water facility
has

been

provided

already The

as

sanction

per

allegation

the Manjeera water facility

plan

and has

already

permission issued by the provided
authorities,
there

that
been

as

per

Presently, sanction plan and the

are

certain permission issued by

changes with regard to the authorities is not
provisions

of

water true. There are more

connections as per new than 500 Flats which
sanctions which we are are in occupation of
not

concerned.

respondents

are

The building

premises.

liable However,

has

been

only to provide water provided only for 360
connection as per the Flats.

Therefore,

sanction plan. However, because

of

at the time of completion providing
of

not
Majeera

total

project

the water connection to all

respondent

also

shall the flats, the petitioner

consider their request of association is paying
the association subject more

for

the

water

to feasibility in fact the usage as there is only
respondents

has

no one connection for 360

responsibility

w.r.t.

to flats,

the
demand

however

the

unreasonable usage is by more than
of

the 500

flats.

Without

21 of 52

association members.

answering this query
the

builder/promoter

is conveniently stating
that he has provided
Manjeera water facility
as per sanction plan
which

not

factually

true and hence denied.
The

builder/promoter

shall provide Manjeera
water

connection

to

each flat owner and to
all

the

flats

project.

It

responsibility

in

the
is

to

see

that all the flat owners
having Majeera water
facility.
4.

Diesel

All generators as agreed With regard the Diesel

Generators

have

been

provided generators,

the

old

w.r.t. performance of the generators have been
generators

at

company

level,

the installed. However, the
the allegation

respondents got it tested builder

that

has

the

installed

for performance and the brand new generator is
same was brought to the not true and is hereby
site for installation. The denied. He himself is
members

are

under agreeing to replace the

impression that it is old old

generator.

The

generator but in fact the Hon'ble authority may
said generator is brand please
new

generator

direct

the

which builder/promoter

to

22 of 52

was got tested ok for its replace

the

performance. In case, it outdated

generators

is

to

be

old

replaced with a new generators

sufficient time is given as early as possible:
we shall replace with
another generator.
5.

Club House

As explained above, the The allegation that the
place

earmarked

clubhouse

as

for builder has provided
per alternate

club

area

sanction plan is under with all Gym area and
dispute with the revenue the cost of temporary
authorities that there is that are provide for
over lap and portion of club house is much
their area is within our more i double the cost
premises,

Already if it is constructed is

approached

Court

the not true and is hereby

dispute is pending and denied. The area for
waiting

for

orders.

Alternate

area

is

favourable club house which was

provided

providing

all

club promised is 40,000 sft.
by However as temporary
the arrangement

amenities of the club builder

the

has provided

house with gym area. flats for usage by the
Already

all

the

flat members

of

the

owners are utilizing the association.
club house facilities in temporary
the

temporary

already

provided.

Those
flats

are

area very small which could
The not be used for normal

cost the temporary area purpose such as to run
provided for club house club

activities

is much more te. double including
the cost of club house if other

GYM

and

facilities.

The

23 of 52

constructed,

the promised club house,

respondents are in loss which

was

to

be

as the temporary area constructed

by

the

which is provided, could builder/promoter is a
not

be

sold

accommodate

as

to big building consisting
the facilities which include

association members for GYM,

Banquet

Hall,

temporary club house. Massage Centre, Yoga
Alternate
provided

facilities room
in

club house

and

temporary facilities
roof.

other

under
The

one

builder

instead of constructing
the said club house is
now stating that there
is a dispute which is
pending and he has
provided

temporary

area which is double
the cost of the club
house if constructed is
not true. The builder
ought to have taken
steps

before

making

construction. The Real
Estate
and

Development
Regulation

Act

2016 clearly mandates
that in case there is a
title

dispute

on

the

project which is being
developed or has been
developed

and

the

24 of 52

promoter

shall

compensate

the

allottes in case of any
loss

being

because

caused

of

defective

title. Because of non
competition

of

construction

of

club

house, the flat owners
are incurring huge loss
as they are spending
money else where for
better

facilities.

As

by

the

admitted

promoter himself that
there is title dispute on
the said land where
the

club

is

to

be

constructed

by

the

promoter.

Therefore

the allottees shall be
compensate

for

the

loss caused to them
because

of

the

defective title on the
land.
6.

Jogging Track

Jogging

track

already The allegation that the

completed. Members are jogging track is already
using

the

same

and completed

and

the

there is regular walkers members are already
in the walking track and using the same is not
the

photographs

are true

and

is

hereby

25 of 52

enclosed for reference.

denied.

The

jogging

track

is

to

constructed
the

be

around

circumference

of

the building. However
just because members
are

walking

common

in

the

areas,

that

shall not be treated as
jogging

track.

Therefore

the

said

allegation

that

the

jogging track is already
completed is not true
and denied.
7.

Visitors Lounge

Visitors

lounge

is The allegation that the

provided

in

the visitors

lounge

is

temporary

club

house provided

in

the

and guests are already temporary club house
utilizing the same.

and

the

guests

are

already utilizing is not
true.

As

per

the

brochure, the visitors
lounge

shall

constructed
entrance
building.

be

at

the

of

the
Just

providing a temporary
flat in one of the tower
would not constitute it
as visitors lounge. The
builder/respondent

26 of 52

shall

make

construction of visitors
lounge at the entrance
of the building
8.

Landscape

Landscape

Gardens,

Fountains and cascade landscape

fountains

Garden, The allegation that the

and is already been provided

cascades

garden,

fountains and cascade
have already provided
is

not

true

and

is

hereby denied. Many of
the

works

completed

are

not

and

are

pending. A few trees
were planted at the
entrance

of

the

building ang the rest of
the landscape garden
fountains which were
promised were not at
all installed till date.
9.

Basketball

There is no specification The allegation that the
agreed

for

provision.
Basketball

Basketball builder has not agreed
However, to provide basketball
court

has court but however the

already provided and the same

has

been

members have converted provided and the same
the basket ball court to has

been

converted

net-cricket practice and into shuttle courts and
shuttle courts and other for Net cricket practice
play areas. There is no is not true and denied.
fault of the respondents

The

builder

specifically

has

stated

in

27 of 52

the

brochure

that

basketball court would
be

constructed.

The

Builder

has

not

completely

build

the

basketball

court

as

promised. Instead he
only laid surface area
for

basketball

court

and has not installed
poles on either side of
the

court.

The

said

court was not useful to
play

basketball.

Therefore left with no
other

option,

people

stated

using

it

for

other purposes.
10.

Mineral
Plant

Water As

Manjeera

water The

allegation

supply has already been since

the

provided and no bore water

supply

that

mineral
has

water or ground water already been provided
required

as

such and

bore

water

or

mineral water plant is ground water is not
not necessary.

required

as

such

mineral water plan is
not necessary is not
true

and

is

hereby

denied. The supply of
Manjeera water is not
guaranteed

24

x

7.

Sometimes when there

28 of 52

is shortage of Manjeera
water

supply,

we

would

require

bore

water to be utilized for
which

installation

of

mineral water plant is
necessary.

This

was

promised

to

the

members

of

the

petitioner

association

while they purchased
the said flats.
11.

Gas Pipelines

There is no specification The

allegation

that

or promise for providing there is no promise for
Gas pipelines.

providing

Gas

Pipelines is not true
and

denied.

The

Builder has promised
to

provide

Gas

Pipelines. The website
of

the

Builder

has

clearly

specified

to

provide gas pipelines
to all the flat owners.
Now he cannot deny to
provide gas pipelines
12.

Fire Safety

Fire

Safety

have
provided

measures The allegation that the

already
as

per

been Fire Safety measures
the have

already

been

requirement of the fire provided as per the
services dept.

requirement of the Fire
Services Department is

29 of 52

not true and is hereby
denied. If the builder
has obtained fire safety
certificate, he ought to
have filed the same
before this authority.
The specific allegation
by the complainant is
that

fire

equipment

safety
is

not

installed in the latest
constructed blocks of
Daffodil

&

Rose

Without installing fire
safety

equipment

in

the said two blocks he
has generalized stating
that he has already
provided

fire

safety

measures AS per the
requirement of the fire
services dept which is
not factually not true.
13.

Swimming Pool

Swimming pool need to The allegation that the
be provided in the house construction

of

as the matter is under Swimming pool is near
litigation

w.r.t completion is not true

construction

of

club and is hereby denied.

house

alterative The

swimming pool is being has

Swimming

pool

been

under

constructed

which

is construction for more

nearing

completion. than 10 years. Till date

30 of 52

Swimming pool provided

it has not yet seen the
light of the day. On
one pretext or other he
has been delaying the
constructing

of

swimming pool.
14.

Mini Theatre

Mini

Theatre/Home

The

Theatre Room shall be that

allegation
the

Mini

provided at the time of Theatre/Home Theatre
construction of the club should be provided at
house on clearance of the
the dispute.

time

construction

of
of

club

house on clearance of
the dispute is not true
and denied. As already
submitted

under

Sec.18(2) the promoter
shall compensate the
allottees in case of loss
caused to him due to
defective title on the
land.

The

builder

inspite of knowing that
there is title dispute,
still has been selling
flats to the members of
the association, even
after the court case
has

been

filed.

Therefore,

the

respondent/builder
cannot

take

the

31 of 52

defence that he would
complete

the

construction

of

the

club house only after
clearance

of

the

dispute.
15.

Guest Rooms

Guest

room

constructed
clearance

can

be The allegation that the
after guest house should be

of

dispute constructed

w.r.t club house as it clearance

of

after
dispute

needs to be provided in w.r.t club house as it
the club house

needs to be provided in
the club house is not
true.

As

submitted

already
under

Sec.18(2) the promoter
shall compensate the
allottes in case of loss
caused to him due to
defective title on the
land.

The

builder

inspite of knowing that
there is title dispute
still has been selling
flats to the members of
the association, even
after the court case
has

been

filed.

Therefore,

the

respondent/builder
cannot

take

the

defence that he would

32 of 52

complete

the

construction

of

the

club house only after
clearance

of

the

dispute
16.

CRECHE

Creche
provided

is

already The allegation that the

which

is builder

has

already

already under usage by provided Creche and
the members.

which is under usage
by the members is only
partially

true.

The

Creche

which

is

promised is not at all
of the standards which
was promised by the
builder/respondent.
The Creche area which
is

now

allotted

is

temporary one which
is not at all looking as
one which will be used
on permanent basis for
the children.
17.

VISITORS

Visitors

Parking

provided.

Parking

is Visitors

parking

as

alleged have not been
provided.

The

allegation

that

the

visitors

parking

is

provided is not true
and is hereby denied.
The

photographs

which are annexed are

33 of 52

only

parking

made

inside the apartment.
Without

there

being

actual parking area for
the visitors who are
visiting

the

building

premise.

the

builder

has

conveniently

stated that the visitors
parking is provided
18.

24x7 security

As

per

agreed
provided

specifications The
CC

builder

cameras promised

to

as
provide

world class safety and
security

systems

for

the safety of the entire
building,

whereas

there are no proper
coverage
cameras

of

CC

TV

in

the

basement
Further

areas.
the

CCTV's

which are provided are
analog base and not IP
based

CC

TVs.

Therefore

the

builder/respondent
has failed to provide
the world class safety
and

security

as

promised.
19.

Sewerage

Sewerage

Treatment The

contention

that

Treatment Plant Plant is provided and the sewage treatment

34 of 52

(STP)

the same is under usage plant is provided and
by the members.

the

same

is

under

usage by the members
is not true and denied.
The

sewerage

treatment

plant

is

installed only for first 4
towers

that

gardening
only.
utility,

For
the

too

for

purpose
household
sewerage

treatment plant is not
operational.
for

Further

the

newly

constructed blocks of
Daffodil and Rose, the
STP provision is not at
all available. Therefore
the contention of the
builder that sewerage
treatment
under

use

plant

is

by

the

members is not true
and denied.

39.

Defects/Problems faced by the Flat Owners:

a) Seepage issues/leakages: The allegation that only at one instance there
was small seepage issue which was rectified and small loss caused to
the flat owners has been compensated and thereafter there are no
complaints of leakage is not true and is hereby denied. In case when
there are heavy rains, there is always severe water logging in the cellars
which could be seen from the photos enclosed herewith. Because of
35 of 52

water logging, the structural integrity of the building would be
damaged. Because of this reason only we requested the builder to
rectify the seepage issues as early as possible.
b) Water proofing on top floor: The allegation that the water proofing has
been done on consultation with the water proofing experts is not true
and is herewith denied. He himself has admitted that there was a small
problem with regard to the leakage. This is persistent problems faced in
all the flats on the top floor. The builder/respondent has to take
immediate steps for getting water proofing done on the top floor.
c) Water logging in lift pits:- As already stated, there is heavy water logging
in the cellar area because of seepage issue. Because of seepage issue
every time when there are heavy rains, there is heavy water logging in
the lift pits. These needs to be rectified immediately if not there shall be
huge loss caused to the association which might occur because of any
of the reasons for which the builder shall be wholly and solely
responsible.
d) Poor

Electrical

infrastructure:

The

allegation

that

electrical

infrastructure has been provided as per the specification is not true and
is hereby denied.
e) Second hand used outdated diesel generators: The allegation that brand
new generators have been installed is not true and is hereby denied.
The authority can conduct enquiry by inspecting the premises and it
would be clear whether the builder has installed old or new generators.
The

statement

made

by

the

builder/respondent

that

alternate

generators will be provided if sufficient time is provided, is a proof that
the generators which are installed are not new.
f) No compound wall for the building: The allegation that except a small
portion of a compound wall, everything is constructed and necessary
precautions have been taken for safety is not true and is hereby denied.
Photographs have already been filed which shows that there is no
compound wall for the building at the prominent place and there are
many incidents where people have misused the said opening and
ventured

into

building

premise.

Therefore,

the

construction

of

36 of 52

compound wall is necessary for the safety and security of the members
of the association.
g) Continuous vehicular movements: The allegation that there is no
disturbance caused because of passing of vehicles is not true and is
hereby denied. The vehicles are passing through the community and
there are heavy disturbances even during nights.
h) Common area power billing title change from builder to society:- The
complainant association has been requesting the builder/respondent to
change the title in the name of society. Till date no action has been
taken from the builder for changing the name of the power connection
in the name of the society.
i) Automatic valve system for overhead tank: There is no automatic valve
system and the allegation that automatic valve system is already
provided is not true and is hereby denied. If the automatic valve system
was provided, he should have filed the photographs of the same.
Without filing any photographs he is simply stating that automatic valve
system is already installed. Without installing automatic valve system,
it is becoming difficult for the association to control the wastage of
water as the water is over flowing after filling of tanks.
j) External wall painting: - The allegation that external paining was done
and given to the flat owners at the time of handing over and it is more
than 5 years the respective owners are enjoying the same and if any
further painting it is the responsibility of the members of the
association

is

not

true

and

is

hereby

denied.

Though

the

builder/respondent has handed over the painted building, however,
because of continuous construction activity which was happening in
and around the society by the respondent/builder, painting on the
external

walls

got

damaged

It

is

the

responsibility

of

the

builder/respondent to complete the building and to hand over the same
in full-fledged form. Now having still making constructions in the
building premises, he cannot throw the blame on the members of the
association to take up external painting which was preliminarily caused
because of the activity under taken by the builder/respondent himself.
37 of 52

40.

The builder/respondent is liable to be rectify the above defects and to

hand over the same to the members of the complainant association as
promised in the broacher and in the sale deeds.
41.

It is necessary to submit here that there is an alternate land which is

available at the back side of the site. The builder/respondent can complete
the construction of the club house in the above vacant site which is lying
vacant and which belongs to the builder/respondent. If the proposed club
house is constructed at the back side of the above site all the problems would
be solved. The other defects with regard to seepage issue, replacing the old
generators. providing water proofing and installing automatic valve system
can be completed as it is his responsibility to clear the same and to hand over
the flats to the members of the complainant association.
42.

In view of the above, it is prayed that this Hon'ble Authority may be

pleased to allow the complaint and direct the builder/respondent to complete
the amenities as preferably as possible within two months and also to rectify
the defects immediately.
F. Observations made by the Authority:
43.

After we have heard learned counsels for the parties at length, the following

questions emerges for our consideration in the present complaint are as under:

Points for consideration:
1) Whether the present matter is maintainable before this Authority
2) Whether the complainants are entitled to the reliefs sought?
3) Whether the Respondent violated the provisions of RE(R&D) Act,
2016?
Point 1:
44.

The Respondents, in their reply, have raised a preliminary objection regarding

the maintainability of the present complaint, contending that the project in question
is not subject to the provisions of the Real Estate (Regulation and Development) Act,
2016 (hereinafter referred to as "RE(R&D) Act") as the building permission was
obtained

on

24.04.2023,

vide

File

No.

1532/06.01/2011,

Permit

No.

15910/HO/WZ/Cir-12/2011. The Respondents argue that since the permission was
38 of 52

granted prior to 01.01.2017, the complaint is not maintainable under the provisions
of the said Act. They have reiterated this contention through the filing of I.A No. 33.
Conversely, the Complainant contends that the project qualifies as an "ongoing
project" as defined under the RE(R&D) Act and, therefore, falls within the jurisdiction
of this Authority.
45.

In order to adjudicate upon this issue, it is imperative to examine the relevant

statutory provisions governing the applicability of the Act. Rule 2(1)(j) of the
Telangana Real Estate (Regulation and Development) Rules, 2017 (hereinafter
referred to as "TG RE(R&D) Rules") defines an "ongoing project" as:
Rule 2(1)(j) of the Rules defines an “Ongoing Project” as:
“Ongoing Project” means, a Project where development is
going on and for which Occupancy Certificate or Completion
Certificate has not been issued but excludes such Projects
for which building permissions were approved prior to
01.01.2017 by the Competent Authorities viz., UDAs / DTCP /
Municipal Corporations / Municipalities / Nagar Panchayats
/ TSIIC as the case may be.”
Further section 3 of the RE(R&D) Act reads as under:“Notwithstanding anything contained in

sub-section

(1)- no

registration of the real estate project shall be requireda) where the area of/and proposed to be developed does not
exceed five hundred square meters or the number of apartments
proposed to be developed does not exceed eight inclusive of all
phases:
Provided that, if the appropriate Government considers it
necessary, it may, reduce the threshold below five hundred
square meters or eight apartments, as the case may be, inclusive
of all phases, for exemption from registration under this Act;
b) where the promoter has received completion certificate for a
real estate project prior to commencement of this Act;
c) for the purpose of renovation or repair or re-development which
does not involve marketing, advertising selling or new allotment

39 of 52

of any apartment, plot or building, as the case may be, under the
real estate project
Explanation.— For the purpose of this section, where the real
estate project is to be developed in phases, every such phase
shall be considered a stand-alone real estate project, and the
promoter shall obtain registration under this Act for each phase
separately.”

46.

A plain reading of Section 3(2)(b) makes it evident that projects for which a

Completion Certificate was obtained prior to the commencement of the RE(R&D) Act
(i.e., 01.05.2017) are exempt from registration under the Act. The legislative intent,
as reflected in the provisions of the Act, is to regulate ongoing projects that had not
obtained a Completion Certificate prior to the commencement of the Act.
47.

In the present case, the Respondents have not obtained an Occupancy

Certificate or a Completion Certificate either at the time of the commencement of the
RE(R&D) Act or thereafter. The project remains incomplete as of date. In view of the
foregoing, and in light of Section 3 of the RE(R&D) Act and Rule 2(1)(j) of TG RE(R&D)
Rules, the concerned project qualifies as an "ongoing project" and, therefore, falls
within the ambit of this Authority.
48.

The Hon'ble Supreme Court, in M/s. Newtech Promoters and Developers

Pvt. Ltd. v. State of Uttar Pradesh & Others [LL 2021 SC 641], has categorically
held that the RE(R&D) Act has retroactive applicability and applies to all ongoing
projects that had not obtained a Completion Certificate before the commencement of
the Act. The Hon'ble Apex Court observed that the legislative intent was to ensure
compliance with the provisions of the Act for all such projects, regardless of their
date of commencement. The Court further held that only projects that had obtained a
Completion Certificate prior to the enforcement of the Act would be exempt from its
purview.
49.

In light of the said judgment, it is clear that the RE(R&D) Act, 2016, applies to

all ongoing projects where a Completion Certificate or Occupancy Certificate has not
been obtained. The legislative mandate, as upheld by the Hon'ble Supreme Court,
underscores that mere grant of building permission prior to 01.01.2017 does not
suffice to exempt a project from the applicability of the Act unless a Completion
Certificate was also obtained prior to its commencement.
40 of 52

50.

The Respondents have also placed reliance on Rule 2(1)(j) of the TG RE(R&D)

Rules to contend that the complaint is not maintainable. However, Section 89 of the
RE(R&D) Act provides for an overriding effect over any inconsistent provisions
contained in any other law, including state rules. Section 89 reads as follows:
“89. Act to have overriding effect.— The provisions of this Act
shall

have

effect,

notwithstanding

anything

inconsistent

therewith contained in any other law for the time being in
force.”

51.

Further, as per Section 84 of the RE(R&D) Act, the power of the State

Government to frame rules is subject to the provisions of the Central Act. Any rule
framed by the State Government must remain subordinate to the parent statute and
cannot override its provisions. In the event of any conflict between the Central Act
and the rules framed under it, the provisions of the Central Act shall prevail in
accordance with the doctrine of repugnancy under Article 254 of the Constitution of
India.
52.

In view of the foregoing, this Authority holds that the project in question

qualifies as an "ongoing project" under the provisions of the RE(R&D) Act, 2016, and
is, therefore, subject to its regulatory framework. Accordingly, the preliminary
objection raised by the Respondents is rejected, and the present complaint is held to
be maintainable before this Authority. Point 1 is answered accordingly.
Point 2:
53.

The complainants’ relief has mainly revolved around the Respondents have

failed to provide certain amenities that were promised in the brochure and further
that the Respondents failed to complete the construction till date and structural
defects that need to be rectified by the promoter respondent. The Respondent on the
other hand contended to complete most of the work and rectify the defects. With
regard to the amenities that the complainants are claiming for, Respondent
submitted that these amenities are a part of the club house, and the area marked in
the sanction plan for the commencement of the club house is unfortunately the
neighbouring landowner, the government of telanagana claimed to be an overlap and
obstructed for further constructing and for the same the Respondent have
approached High Court of Telangana vide writ petition no. 1572 of 2020 and
obtained status quo order. Hence, till the pending litigation is disposed of, the
Respondent will not be able to complete the construction of the club house, however
for the time being, the Respondent claims to have been given substitute temporarily
41 of 52

rooms to run it as their association office, games room, function hall and space for
cultural activities.
54.

During the proceedings, both the parties requested for a third party inspection

for adjudication of the Authority Consequently, the Engineering Staff College of

India

was

directed

to

inspect

the

subject

Villa

via

letter

dated

Lr.No.1786/TGRERA/2024, Dated 04.07.2024. Subsequently, the inspection
report, vide ESCI/PD/TPQC/TSRERA/15/2024-25, dated 20.08.2024. The
Inspection report has provided a detailed inspection, conducted in the
presence of both parties, listing concerns raised by the complainant. As per
the Report, following are the evaluation and observation made:
PART – I Comprehensive Evaluation on Defects and quality issues rasied by the
complainants:

S.no Nature

of

defect, ESCI

quality Issues

1.

Seepage
issues/leakages

2.

Water proofing
top floor

Team Developer

Observations
Inspection was conducted
in the cellars & Sub
cellars of all 6(six towers)
and noticed provision of
drain for collection of
seepage water & for
further
disposal
with
pumping arrangements.
on MARIGOLD TOWER &
ROSE
The
TOWER
Noticed dampness and
damage of false ceiling in
corridor of floor and one
of the flat dampness is
noticed on walls of 9th
floor. In Flat no. 904 of
ROSE TOWER, it was
informed that the entire
false ceiling was collapsed
but the flat was locked
and key not available for
inspection. On inspection
of the terrace floor, it was
noticed
that
the
expansion joint on the
terrace slab needs to be
properly
fixed
and
covered, further hair line
cracks are noticed on the
surface of the terrace

compliance
The developer has
made
pumping
arrangements
for
disposal and needs
timely operation of
pumping
system
during rains.
The developer needs
to fix the expansion
joint properly and
make it leakproof.
Proper
water
proofing treatment of
the entire terrace
floor
is
to
be
revisited.

42 of 52

3.

Water logging in the
lift pits

4.

Poor
Electrical
infrastructure
resulting
in
fluctuations in the
incoming
power
supply
and
electrical outages.

5.

Second
outdated
hand
Diesel
Generators installed
in
ROSE
&
DAFFAODIL Towers

6.

No Compound wall
for the building and
expressed
safety
concerns

7.

Continuous
vehicular movement
resulting in sound
disturbance and air
pollution.

floor weathering coat at
various
Stagnation of water is
noticed In the lift pit to
an extent of 2" in subcellar of the following
towers
1) MARIGOLD
2) JASMINE
3) LOTUS
The reasons for power
fluctuations
may
be
owing to
1)overloaded
power
connections
on
the
TGSPDCL 11KV power
grid supply
ii)Confirmation
of
Transformer
working
condition
iii)Confirmation
of
working
condition
of
distribution panels
iv)Any loose contact if
any.
The Developer promised
to examine and address
this issue duly replacing
with need based new
Diesel
Generators
by
DEC-2024
The entire premises was
inspected
and
found
compound wall existing
with
gates
and
deployment of security
personnel at the main
gate. A small portion of
compound wall is seen
dismantled
near
the
proposed
club
house
owing to stoppage by the
Revenue Authorities and
the matter is said to be
Sub-Judice.
As on date two towers are
under construction and
further EWSH & LIGH are
to be to constructed
hence
vehicular
movement
and
some
inconvenience
is
inevitable.

The
builder
is
advised to identify
the source of seepage
and fix the issues.

The developer needs
to fix this issue duly
verified
by
a
Electrical
certified
Inspector/Engineer
and ensure regular
power supply

The
Developer
promised to build the
gap portion of the
compound wall on
resolving of the Subjudice matter.

However,
the
developer is advised
follow
construction
safety manual and
limit
the
construction
vehicular traffic by
properly organising.
43 of 52

8.

Common area power
billing title change
from
builder
to
Society

9.

Automatic
Valve
system
for
Over
Head tanks. Builder
has not made the
provision

10. External paintings-

Due prolonged wall
construction activity
four
blocks
JASMINE, LOTUS,
TULIP & MARIGOLD
Towers
need
External painting

Title change has to got
done by the society by
submitting
the
documents
to
the
TSPDCL and get the
change
of
category
i) Copy of sale deed
ii) Copy of O.C.
iii) Pan Card of the
Society
iv)
List
of
Society
members approved by
DCO
v)Society
Registration
Cert.
vi) Affidavit
On
inspection
it
is
noticed
that
Solenoid
Automatic
ElectroMechanically
operated
valves are provided which
work on sensors, it
requires
proper
maintenance
and
Operation by the Society.
On inspection there is to
significant damage to
external painting

It is the Domain of
Society copy of sale
deed and OC to be
furnished
by
the
Developer.

The Society needs to
look after the regular
O&M System.

However,
the
Developer promised
to provide a single
coat external paint to
the towers effected
after completion of
civil works of balance
two towers.

PART II - Comprehensive Evaluation on Status of the amenities to be provided by the
Builder

S.no

1.

2.

3.

Nature of
Amenities
promised by the
Builder
Lifts
As
per
sanction
and
assurance by the
builder 3 lifts need
to be provided, but
only 2 lifts are
provided.
Central Park Not yet
constructed by the
builder.
Manjeera
connection

ESCI Team Observation

Developer
Compliance

On inspection two lifts
are provided and there is
a provision for one more
lift and the lift openings
are covered with plywood
sheet
as
a
safety
measure.
Civil
works
are
completed
and
earth
filling and landscaping
needs to be done
The Builder has revised
sanction for 360KLD vide

The
developer
promised to provide
the 3rd lift by Feb2025 and accepted
by
the
society
members.
The
developer
promised to complete
the central park by
end of Nov-2024
The
Developer
promised to Laison
44 of 52

enhancement
increased flats

4.

5.

Diesel
Generator
Second
hand
outdated
Diesel
Generators installed
in
ROSE
&
DAFFAODIL Towers
CLUB HOUSE- Not
Yet constructed

File
Serilingampally
Zonal office no.2024-33583 from for road
cutting
permission
HMWSSB and made the
and get the work done at
necessary payments and
the earliest. Road cutting
permission. is awaited
for laying an exclusive
water
pipeline
and
release the water.
The Developer promised
to examine and address
this issue duly replacing
with need based new
Diesel Generators by
DEC-2024
On inspection the club
house construction was
commenced and frame
structure done for one
floor and was stopped by
the Revenue Authorities.
The Developer has filed
WP.no.1572
of
2020
against
the
Revenue
authorities and the case
is posted for counter
filling
During the inspection
Exclusive Jogging track
was not observed during
the inspection.

6.

JOGGING TRACKNot yet constructed
as promised by the
Developer

7.

VISITOR'S LOUNGE During the Inspection
not yet constructed Exclusive Lounge area is
not existing

8.

LAND
GRADENS,
SCAPE FOUNTAINS
& SCASCADES not
yet provided by the
developer

On
Inspection
Land
scape
garden
is
completed on the three
2024 sides Fountain is
provided and Cascades

with
the
GHMC
Serlingampally Zonal
Office Road cutting
permission and get
the work done at the
earliest.

The
Developer
promised to follow up
the case for early
resolution.

The
Developer
promised to provide
the
jogging
track
after the completion
of civil works of
balance two towers
in
the
setback
portion existing al
round the towers.
The Developer has
promised to provide
the needed furniture
for lounge and place
them at the entrance
lobby
acrosS
all
towers
for
convenience of the
visitors.
The
Developer
promised to complete
by end of Dec-2024

45 of 52

9.

10.

11.

12.

13.

14.

finishing needs to be
completed.
Basketball court & On
inspection
it is Already provided
Pool table provided noticed
that
a
not as promised.
Multipurpose court is
existing for both Shuttle
and Basket ball
Mineral water plant On inspection existing The
Developer
not yet constructed not existing
accepted to provide
as promised
water softener for
Bore well water by
January-2025
as
Manjeera water is
already existing and
further enhancement
is in pipeline.
Gas pipeline
On
inspection
not The
Developer
existing
expressed
his
inability
for
this
provision.
Fire
Safety On
inspection
it is The
Developer
equipment
not noticed that the Fire assured to comply
installed
in safety infra is installed in after
getting
DAFODILS & ROSE 4 towers, further the Fire clarification from the
Towers, remaining 4 Department approval is Fire
Department
towers
Fire perused and noticed that immediately.
Installations are not the approval is valid upto
tested.
July-2024 for "A" & "F"
towers and Aug-2024 for
"G" & "H" and requires
renewal immediately. The
Developer
needs
to
conduct a mock drill of
the Fire incident and
appraise
the
Asset
Maintenance wing as well
as the occupants.
Swimming Pool-Not The Developer informed The
Developer
Yet constructed as that the Mini Theatre is promised
install
promised
by located in the Club further
filtration
developer
house and as the club equipment
house construction is installations
and
stalled by the Revenue commission the pool
Authorities owing to Sub- by end of Feb-2025
Judice matter.
for which the society
has accepted.
Mini Theatre
The Developer informed The
Developer
that the Mini Theatre is promised to provide
located in the Club the
facility
on
house and as the club resolution
of
the
house construction is Sub-Judice
matter
stalled by the Revenue the
Hon'ble
High
Authorities owing to Sub- Court at the earliest
46 of 52

Judice matter.

15.

Guest Rooms -Not
Yet constructed as
promised
by
Developer

16.

Creche-Provided by
the developer but
the rent is beinf
collected
by
the
Developer himself

On
inspection
it is
noticed that the in each
tower one flat is allocated
as Guest rooms and
sufficient furniture needs
to be provided.
On
inspection
it is
noticed Creche is existing
and managed by private
agency, the rent is being
collected by the developer

17.

Visitor's
Parking
Not Yet provided as
promised
by
Developer

On inspection Is noticed
the visitors are parking
temporarily
in
the
premises.

18.

24x7 Security IP
based CC cameras
Insisted as against
Analog
based
cameras
without
proper coverage

On inspection noticed
Cameras
it
Is
are
provided at four corners
of the building in Ground
floor

19.

for which the Society
has accepted.
The
Developer
promised to provide
the needed furniture
by end of Aug-2024
for which the society
has accepted.
The
Developer
promised to hand
over the Creche to
the
Society
for
further maintenance
immediately
The
Developer
assured to allocate
10
parking
slots
exclusively
for
Visitor's
at
the
earliest
The
Developer
asserts
that
they
have provided as per
their
scope
and
further need based
may be done by the
Society.

In Cellar and Sub-Cellar
cameras are provided at
entry and exit points.
Sewerage Treatment On inspection noticed The
Developer
Plant Not tested non-functional of STP
asserts that the STP
properly and not
was functional and
handed
over
by
treated water system
Developer.
was
connected
exclusively
for
flushing of toilets,
Later, on complaints
of foul odour and
cross
connections
the occupants have
disconnected
the
system and disabled
the STP functionality.
However
the
Developer needs to
commission the STP
and hand over to the
Society by Dec-2024

47 of 52

55.

Based on the findings of the Report, it is evident that the concerned project

suffers from multiple structural and other defects that require rectification by the
promoter. Furthermore, certain amenities, which were contractually obligated to be
provided, have not yet been handed over to the complainants. Under Section 14(3) of
the Real Estate (Regulation & Development) Act, 2016, it is explicitly stated that:
"In case any structural defect or any other defect in workmanship, quality, provision of
services, or any other obligation of the promoter under the agreement for sale is
brought to the notice of the promoter within five years from the date of handing over
possession, the promoter shall rectify such defects without additional cost within thirty
days. In the event of the promoter’s failure to do so within the stipulated period, the
aggrieved allottees shall be entitled to appropriate compensation as provided under
this Act."
56.

In the present case, the project undertaken by the Respondent is still ongoing,

and the agreed-upon amenities have yet to be handed over to the allottees. Given
that the Respondent has acknowledged the defects cited in the Report and has
agreed to undertake the necessary rectifications, the Respondent is hereby directed
to rectify all deficiencies identified in the inspection report in accordance with the
assurances provided.
57.

Furthermore, this Authority has already passed an interim order dated

04.05.2024, directing the Respondent as follows:
7.

In consideration of the safety concerns raised by the

complainant association and in the interest of upholding their rights,
this Authority, exercising its powers under Section 37 of the RE(R&D)
Act, hereby issues the following directives to Respondent 1:
a. The Authority recommends the construction of a 2-foot-high
basement along the site boundary to protect residents from
snakes and other hazardous animals. Additionally, the
installation of a gate for the protection of ingress and egress
shall be done by Respondent 1
b. With the impending monsoon season, the complainants'
concerns regarding seepage and leakages are noted. Therefore,
waterproofing measures should be undertaken on the terrace.
c. Steps have to be taken to ensure no water enters the the lift
pits.
48 of 52

d. Respondent 1 is directed to strictly adhere to these directives
and to complete the aforementioned works within 15 days from
the date of receiving this order.
In the event of non-compliance with the aforementioned directives,
appropriate action under section 63 will be initiated against
Respondent 1. This matter is scheduled for review on 11.06.2024.
58.

Furthermore, the Respondents have subsequent to the Interim Order filed

explanation memo stating that a portion of the compound wall remains incomplete
due to an ongoing litigation before the Hon’ble High Court. Additionally, the terrace
waterproofing is being attended to as it involves minor leakage issues, and concerns
related to the lift pits have already been addressed.
59.

The Authority further notes that the clubhouse area within the project is

under dispute, with the matter pending adjudication before the Hon’ble High Court of
Telangana in Writ Petition No. 1572/2020. Since the land in question is presently
under judicial consideration, this Authority, at this juncture, is unable to grant any
relief concerning the completion of construction on the disputed portion.

60.

Works to be Completed/Rectified by the Respondent Promoter:

1. The expansion joint on the terrace slab shall be properly fixed, and
comprehensive waterproofing treatment of the entire terrace shall be
carried out in Marigold and Rose Towers.
2. The source of water stagnation in the lift pit shall be identified and
rectified immediately.
3. The issue of power fluctuations shall be examined and resolved without
delay to ensure a stable and uninterrupted power supply.
4. Concerns regarding the Diesel Generators shall be duly examined and
appropriately addressed.
5. The compound wall gap, as assured by the Respondent, shall be
completed upon resolution of the ongoing litigation.
6. As undertaken by the Respondent, a single coat of painting shall be
applied to the affected towers after the completion of civil works in the
remaining two towers.
7. In accordance with the sanctioned plan, the Respondent shall ensure
that the third lift is installed and made operational for the allottees.
8. The central park shall be completed in its entirety.
49 of 52

9. The Respondent shall expedite the installation of the Manjeera water
pipeline connection, ensuring compliance with the commitment made to
liaise with the competent authority for its earliest completion.
10.
The jogging track and visitors' lounge at the entrance, as
promised in the project brochure, shall be duly completed.
11.
Landscaping, including gardens and fountain works, shall be
executed as per the approved plan.
12.
A water softener for borewell water shall be made available for the
complainants.
13.
The Respondent shall immediately renew the necessary approvals
from the Fire Department for all four towers and install fire safety
equipment in Daffodils and Rose Towers.
14.
Visitor parking shall be duly allocated and demarcated in
accordance with the sanctioned plan and made available for use.
15.
The functionality of the Sewage Treatment Plant (STP) shall be
restored and made operational for the benefit of the allottees without
delay.
61.

The works identified above, wherein the Authority has expressly

directed immediate rectification, shall be completed without any further delay.
The remaining works shall be completed within 90 days from the date of this
order.
POINT 3:

62.

In light of the submissions made by the Respondent-promoter during

the hearing, the inspection report, and the documentary evidence on record
and as examined and observed in paragraphs 44 to 52 of this Order, it is
evident that the concerned project, namely "RDB Coconut Grove," remains an
ongoing project, as its construction is yet to be completed. As the promoter
continues to advertise and market the sale of apartments through its website
and various real estate marketing platforms. As of the present date, the total
area of land under construction exceeds 500 square meters, and the number
of apartments being developed surpasses eight. Additionally, the project has
not obtained an Occupancy Certificate prior to the commencement of the Real
Estate (Regulation and Development) Act, 2016 (hereinafter referred to as the
50 of 52

"RE(R&D) Act"). Consequently, the project is not exempt from mandatory
registration under the said Act. Such non-compliance necessitates the
imposition of a penalty under the applicable provisions of the Act to uphold
the legislative intent and ensure compliance with statutory requirements.
63.

The Authority is satisfied that the Respondent has violated the

provisions of Section 3(1) of the RE(R&D) Act, 2016. This omission attracts
penal consequences under Section 59(1) of the Act, which is reproduced
below:
"lf any promoter contravenes the provisions of
section 3, he shall be liable to a penalty which
may extend up to ten percent of the estimated
cost of the real estate project as determined by
the Authority.
64.

In determining the appropriate quantum of penalty, it is imperative to

consider the nature and extent of the violation committed by the Respondent.
A plain reading of Section 3 of the RE(R&D) Act, 2016, mandates that any real
estate project which has not obtained an Occupancy Certificate or a
Completion Certificate prior to the commencement of the Act must be duly
registered under its provisions. The Respondent’s failure to comply with this
statutory mandate warrants the imposition of a penalty.
65.

It is essential to clarify that the imposition of this penalty does not serve

as a means to regularize the breach committed by the Respondent. Rather, it
serves as a deterrent measure, aimed at discouraging similar violations in the
future and ensuring strict adherence to the regulatory framework established
under the Act.
G. Directions of the Authority:
66.

Based on the facts submitted, evidence on record, and the findings

given thereon by us as discussed herein above, this Authority holds that the
complainant is entitled to the reliefs as prayed by him, and the same is
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allowed in his favour, and the Respondent 1 and 2 are hereby directed as
follows:
a. The Respondents shall rectify and complete all the works specified in
Paragraph 60 of this Order. Any works expressly directed for immediate
rectification by this Authority shall be completed without further delay.
The remaining works shall be duly completed and rectified within ninety
(90) days from the date of this Order.
b. In view of the clear contravention of Sections 3 of the RE(R&D) 2016,
this Authority, exercising its powers under Section 59 of the said Act,
imposes a penalty of Rs.6,00,000/- (Rupees six lakh only)

on

Respondent 1. The amount is payable in favour of TGRERA FUND
through

a

Demand

Draft

or

online

payment

to

A/c

No.

50100595798191, HDFC Bank, IFSC Code: HDFC0007036, within 60
days of receipt of this order by the Respondents.
c. Respondent No. 1 is hereby directed to register the concerned project
“RDB Coconut Grove Apartment” under Section 3 of the Real Estate
(Regulation and Development) Act, 2016, within 45 days from the date
of receipt of this order. Until such registration is obtained, the
Respondent is restrained from marketing, booking, selling, offering for
sale, or inviting any person to purchase any unit in the said project.
67.

Failure to comply with above said directions by the Respondents and

complainant shall attract penalty in accordance with Section 63 of the said
Act, 2016.
68.

In light of the foregoing, the complaint stands disposed of accordingly.

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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