Order Complaint No. 399 Of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
14th December 2023
Corum:

Dr. N. Satyanarayana, IAS (Retd.), Hon’ble Chairperson
Sri LaxmiNarayanaJannu, Hon’ble Member
Sri K. SrinivasaRao, Hon’ble Member
COMPLAINT NO.390 OF 2022

Between
Sri S Suryanarayana

…. Complainant

AND
M/s Suchir India Infratech (P) Ltd.

…. Respondent

COMPLAINT NO.399 OF 2022
Between
Sri P Krishnaiah

…. Complainant

AND
M/s Suchir India Infratech (P) Ltd.
COMPLAINT NO.406 OF 2022
Between
Sri Suresh Gadalay

…. Complainant

AND
M/s Suchir India Infratech (P) Ltd.
…. Respondent
There complaints have come for hearing on 24th August 2023,19th
September 2023,10th October 2023, 7th November 2023 and 23rd November
2023, before this authority, in the presence of Complainants party in persons
and Advocate GVS. Prasad Rao for representing Respondent in all the
complaints and after hearing both the parties, the Authority passes the
following:
COMMON ORDER
2.

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

(Regulation and Development) Act, 2016 (hereinafter referred to as the
“RE(R&D) Act”) read with Rule 34(1) of the Telangana Real Estate (Regulation
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and Development) Rules, 2017 (hereinafter referred to as the “Rules”) seeking
directions from this Authority to take action against the Respondent.
3.

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

grounds. Similarly the stand taken by the Respondent in their counters is
also same. Therefore for the sake of the convinenince and to avoid repetitions
the pleadings from the complaint no.390/2022 are reffered below.
A. Unit and project related details:
4. The particulars of the purchased villa are as follow:
Heads

S.no

Information

1.

Promoter- Project name

M/s Suchir India- Project – Timber leaf

2.

Project area

19-25.056 Gts

3.

Nature of the Project

Gated community Villa G+1 upper floor)

4.

HADA/HMDA approval

Preliminary

approval-

HADA

–

03.01.2008
Approval of the Revised cum final layout
dated, 03.02.2021
5.

RERA Registration

Not registered

B. Facts of the complaint:
5. The complainants submit the following details in the complaint against the
Respondent firm, M/s Suchir India Infratech (P) Ltd.
i.

In 2006, the Respondent developed the Timber Leaf gated community
project, selling approximately 80 villas, with 42 villas remaining unsold.

ii.

Upon inquiry into pending works and promised amenities, the
Respondent, M/s Suchir India Infratech (P) Ltd., is allegedly threatening
the allottees. A total of 28 cases have been registered against the
Respondent across various police stations.

iii.

Y Kiran Kumar has reportedly created a fearful situation within Timber
Leaf, indirectly obstructing the formation of meetings. Many villa
owners are hesitant to engage in discussions with other members due
to this intimidating environment. Furthermore, the company has not
yet obtained an Occupancy Certificate. There is no water connection

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from HMWS&SB, and the boundaries of the land (25-04 gts) as stated
in the brochure and registered documents have not been delineated.
iv.

Additionally, the Respondents are collecting approximately 4-5 lakhs at
the rate of ₹5,600/- from each villa owner. Allegedly, the services
provided are subpar, expenditure details remain undisclosed and
promised facilities outlined in the brochure and registered documents
are not being delivered.

C. Relief(s) sought:
6.

The complainants have sought following relief(s)
1. To direct the Respondent to obtain and provide Occupancy certificate.
2. To provide drinking water through Hyderabad Metropolitian Water
Supply and Sewerage Board (hereinafter refered as HMWS& SB)
3. To provide compound wall with solar fencing above the compound wall.
4. To form Timber leaf Villa Owners Maintenance Mutually Aided Cooperative Society.

D. Reply filed by the Respondent:
7.

The respondent submits the following in reply to the contentions raised

by the complainants in their complaint:
I.

The defendant/respondent company at the outset denies all the
averments and allegations made by the complainant in the present
complaint, and the complainant is put to strict material proof of all
such averments/allegations. It is further submitted that there is privity
of contract between the complainant and this respondent as it is a
second purchase.

II.

The answering respondent submits that all the allegations made in the
complaint are denied as false, except those that are specifically
admitted or traversed hereunder, and the complainant is put to strict
proof of the same.

III.

The respondent submits that the complainant has not approached this
authority with clean hands; the complainant has filed the present
complaint by suppressing the material facts and got filed the present
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complaint with a sole motto to harass the respondent by creating a false
litigation and without having any right or authority and in gross
violation of the agreed terms and conditions of the agreement of sale
and sale deed, as per the said terms and conditions there are no bona
fide allegations/contentions in the Complaint.
IV.

That the above complaint is not maintainable, as the reliefs sought in
the above complaint do not violate any of the regulations or agreed
terms of the contract (agreement of sale) or the sale deed executed in
favour of the complainant. It is submitted that the complainant herein
has suppressed the true facts and is disentitled to any discretionary
relief on the Principle. Before submitting the paragraph-wise reply, the
following true facts are necessary and essential to adjudicate the relief
sought in the above complaint.

V.

That it is true that the respondent company herein is the promoter of
the said venture. It is further submitted that the complainant has
purchased a semi-finished villa, and it is not denied that the possession
of the villa was handed over to the complainant in an as-is, where-is
condition.

VI.

That for the said venture vides Lr. No. 9977/LO/Plg/HMDA/2006 of the
HMDA, a preliminary approval was accorded by the concerned
authority, and the respondent started the works of the said project.
Subsequently, the final approval of the entire project/venture for an
extent of Ac. 19-25.056 gts was sanctioned and not 25 acres as alleged
by the complainant, and some of the works/amenities as mentioned in
the brochure are in progress. It is pertinent here to mention that there
is no specific time period specified in the said agreement of sale except
it is stated that all the works shall be completed as per the final
approval of the competent authority and in accordance with the agreed
terms and conditions of the agreement of sale. As supra stated supra
the complainant herein has purchased a semi-finished villa.

VII.

After getting the final approval, the respondent has completed all the
works as per the terms and conditions and in accordance with the final
approval of the layout.
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VIII.

The complainant has not paid any maintenance charges from the
beginning till date as agreed and to satisfy his ego has formed a group
of a few owners with 11 owners out of the total 122 owners.

IX.

The complainant has got an association registered under the cooperative society's Act in gross violation of the terms and conditions as
per the agreement of sale and sale deed. It may not be out of place here
to produce the contents of para 11(e) of the sale agreement, which reads
as follows: After completion of one year from the date the project is
ready for occupation, the Developer shall handover the common
maintenance of the Timber leaf to the Owners association or the agency
approved by the Owners association. It is the responsibility/obligation
of the purchasers to form the Owners Association within one year from
the date of completion of the project/possession, and the Developer will
only facilitate and supplement the formation of the association. If, in
the event of delay on the part of the purchases to constitute the owners
association within the year, the Developers shall not be held responsible
for the common maintenance of the Timber Leaf.

X.

It is further submitted that two members have filed their objections
before the competent authority against the complainant, and it is
further submitted the complainant has got the said association
registered after filing a writ petition No. 10737/2023 before the Hon'ble
High Court of Telangana. The respondent here filed a writ petition No.
10737/2023 seeking cancellation of registration of the said association
under the MACS, which is pending before the Hon'ble High Court as it
is formed in violation of the agreed terms and conditions between the
complainant and the respondent. The allegation that there are several
complainants pending against the respondent in various police stations
is denied, and the complainant is put to strict material proof of all such
allegations, and the respondent is at liberty to initiate appropriate legal
action as per law for making such frivolous and baseless allegations
against the respondent to tarnish its image.

XI.

The occupancy certificate is not provided to the complainant as
admitted by the complainant himself, It is a gated community and is
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not a single unit of the complainant's villa to provide a separate
occupancy certificate to the complainant. As submitted above, the final
approval of the layout was received on 03-02-2021, and some minor
works are in progress as regards the amenities, and as such, it is
delayed, and it is further submitted that the complainant has not paid a
single rupee towards maintenance, though it is agreed that the
respondent will take care of the maintenance of the entire villas till the
completion of the entire works relating to the said gated community TL;
as such, the complainant cannot blame the respondent on this aspect.
It is further submitted that the villas are maintained by the respondent
themselves through an agency named "Knight Frank," and the
respondent is paying monthly charges of Rs. 7-8 Lakhs; a copy of the
recent bill is herewith enclosed.
XII.

With regard to the HMWS&SB water connection the respondent
submits that once the pipeline for supply to the area (the said gated
community) is completed by the HMWS&SB, the water connections will
be given through the internal pipelines which this respondent has
already provided.

XIII.

The contention of the complainant that the respondent is causing
obstructions in forming an owners' welfare association is denied, in fact,
the complainant has already got a society without following the due
process, and the same is questioned in the writ petition filed by this
defendant, as the same is in violation of the terms and conditions
between the complainant and the defendant. The allegation that there
are several complaints pending against the respondent in various police
stations is denied, and the complainant is put to strict material proof of
all such allegations, and the respondent is at liberty to initiate
appropriate legal action as per law for making such frivolous and
baseless allegations against the respondent to tarnish its image.

XIV.

With regard to showing the boundaries for 25 acres, the respondent
reiterates that the sanction plan for the entire said project for Ac. 1925.056 gts only, and the same is evident from the approved layout by
the HMDA and not 25 acres as alleged by the complainant.
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XV.

It is not true to state that the respondent is not accounting for the
amounts collected towards maintenance from 80 villa owners. As
submitted above, the complainant is a defaulter and has not paid a
single rupee towards maintenance till date. The respondent shall
handover the maintenance to the society after completing all the works
as per the agreed terms and conditions by and between the
complainants and respondent.

E. Hearing conducted:
8.

When these complaints had been taken up for hearing both the parties

requested to club all three complaints and pass a common order. As such,
three complaints are disposed of by a common order. Heard both the parties
9.

Hearings were conducted on 24.08.2023, 19.09.2023, 10.10.2023,

07.11.2023, and 23.11.2023. During the course of hearing, complainants
reiterated their contentions from the original complaints. Whereas, the
respondent has reiterated the contentions raised in the counter. The
complainants stated that they purchased villas from the respondent in the
Timber Leaf project, under sale agreements dates ranging from 2009 to 2019.
10.

The respondent allegedly failed to complete villa construction in all

aspects such as internal specifications and external common facilities as
promised in the executed agreements. The Complainants emphasized issues,
including the non-functional solar fencing, and pleaded the authority that
they would pay maintenance once specified conditions are met, such as the
completion of the compound wall, solar fencing, water supply from HMWS &
SB, and the construction of STP.
11.

Conversely, the Respondent addressed four major issues raised by the

Complainants. Firstly, with respect to the HMWS water connection, the
Respondent stated that the layout of the pipeline to supply the water to the
project is pending by HMWS & SB as the internal pipeline facility has already
been completed by the Respondent. Secondly, regarding the Occupation
Certificate, the Respondent explained that due to the project being a gated
community, a separate occupancy certificate cannot be provided. The
Respondent accepted delay in obtaining the certificate due to minor pending
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works. In regards to the Association formation, the Respondent claimed that
the complainants had formed a society without following due process, and
this is being questioned in a writ petition filed by the Respondent and the
same is pending before the Hon’ble High Court. The Respondent assured that
they would hand over maintenance to the society after completing pending
works, as per the sale deed para 11(e) executed between the complainants
and respondents.
F. Observations made by the Authority:
12.

On the above pleadings, the pointes that arise for consideration are:

1. Whether the project is an ongoing project and the Respondent has
violated the provisions of section 3 of the RE(R&D) Act by not
registering the Project?
2. Whether the complainant is entitled for the reliefs sought?
13.

Point 1: Whether the project is an ongoing project and the
Respondent has violated the provisions of section 3 of the RE(R&D)
Act by not registering the Project?
a. On consideration of the documents available on record and the
submissions made by both the parties, the authority notes that
the project involving the allocated villas is currently underway.
However, the Respondent, who is also the promoter, has failed to
register the aforementioned project under the Telangana State
Real

Estate

Respondent

Regulatory
obtained

Authority

revised

(TSRERA).

HMDA

layout

Notably,

the

approval

on

03.02.2021, a date subsequent to the establishment of TSRERA.
Additionally, the Respondent has not applied for and obtained the
occupancy certificate to date, acknowledging that certain aspects
of the project remain incomplete.
b. Accordingly to proviso to Section 3 of the Real Estate
(Regulation and Development) Act of 2016 (RE(R&D) Act of
2016), for projects that are ongoing on the date of the Act and for
which the Occupation certificate has not been issued, the
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promoter is required to submit an application to the authority for
the registration of the project within three months from the
commencement of the Act. The section 3(1) of the Act is
reproduced herein for reference:
“3. (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”
Rule 2(J) of the Rules defines 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.

c. The legislation explicitly states that a project maintains its status
as an "ongoing project" until the receipt of the occupancy
certificate. As noted above the Respondent obtained revised
HMDA layout approval vide 03.02.2021, the promoter/respondent
has yet to obtain the occupancy certificate for the concerned
project, this constitutes a violation of the RE (R&D) Act, 2016. In
light of these facts and the legal framework, the Authority
concludes that the Project is an ongoing project and the
Respondent having failed to get the project registered violated the
provisions of section 3 of the RE(R&D) Act. The point is answered
accordingly.
14.

Point 2: Whether the complainant is entitled for the reliefs sought?
a. The complainants seek direction to the Respondent to obtain
and provide occupancy certificate:

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It is noted that the Respondent has not yet completed the entire
project, and minor works are pending. Also to be noted that the
Respondent has obtained its revised final layout approval on
03.02.2021, for which the Respondent has not yet completed the
work with respect the concerned project. Hence, the complainants
asking for the occupancy certificate for their individual villa is not
possible, as concerned project is a gated community villa,
Occupancy certificate shall be applicable to the entire project
after the completion of the entire project and not as per the
individual villa construction.
b. Complainants also seek direction to the Respondent to
provide drinking water through HMWS&SB:
The Authority acknowledges that the Respondents have fulfilled
their obligations by installing internal pipelines. Nevertheless, it is
imperative to emphasize that the initiation of the water supply
pipeline to the respective area rests within the purview of the
HMWS&SB department. Notwithstanding this, the Respondent is
obligated to diligently pursue the concerns raised by the
Complainants with the HMWS&SB department and ensure the
expeditious provision of drniking water to the Complainants.
c. The complainants also seek directions to the Respondent to
provide compound wall in place of dilapidated wall along with
solar fencing:
In

accordance

with

the

brochure

furnished

by

the

Respondent/Promoter pertaining to the relevant project, it is
apparent that the Promoter committed to the Allottees the
provision of a solar fencing compound wall in lieu of the
dilapidated wall. Pursuant to the Real Estate (Regulation and
Development) Act, 2016, it is incumbent upon the Promoter to
adhere to the commitments outlined in the prospectus or
advertisement. Consequently, the Respondent would be under
obligation is hereby obligated to fulfil the aforementioned

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commitment by providing a compound wall equipped with solar
fencing to the Allottees.
d. The complainants also seeks direction to form Timber Leaf
Villa

Owners

Maintenance

Mutually

Aided

Co-operative

Society:
The Authority takes note that the complainant has already
initiated the formation of a welfare association. However, given
that the formation of the said association is currently under
pending before the Hon’ble High Court with writ petition filed.
Therefore, the Authority refrains from intervening in the issue of
formation of association at this juncture. The point is answered
accordingly.
E. Direction of the Authority:
15.

In the light of findings of the Authority as recorded above, the following

directions under section 37 of the RE(R&D)Act to ensure compliance of
obligations cast upon the promoter as per the function entrusted to the
Authority under section 34(f) of RE(R&D) Act, are issued:
1. For contravening section 3 of the Act, this Authority, exercising its
powers under section 59 of the Act, imposes a penalty of Rs.
11,33,328/-. This penalty is imposed for marketing/selling villas of the
Project without registering the project before this Authority. The amount
is payable in favour of TSRERA FUND through a Demand Draft or
online payment to A/c No.50100595798191, HDFC Bank, IFSC Code:
HDFC0007036, within 30 days of the receipt of this Order by the
Respondents/Promoter.

Additionally,

this

Authority

directs

the

Respondent/Promoter to register the said project before this Authority
within 30 days of the receipt of this Order to comply with the provisions
of section 3 read with section 14(3) of the RE(R&D) Act of 2016.
2. The Respondent shall also construct a compound wall with solar
fencing in the concerned project within 60 days from the receipt of this
Order.

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3. The Respondent is further mandated to initiate contact with the
HMWS&SB department, diligently pursuing the timely provision of
potable water to the Complainants
4. The Complainants are hereby directed to pay maintenance charges to
the Respondent, as the Complainants are presently in possession of and
have already occupied the Villas.
16.

In lieu of above findings and directions, the present complaint stands

disposed off. The parties shall bear their own cost. The parties are hereby
informed that failure to comply with this Order shall attract section 63 of the
Act.
17.

If aggrieved by this Order, the parties may approach the TS Real Estate

Appellate Tribunal (vide G.O.Ms.No.8, Dt.11-01-2018, the Telangana State
Value Added Tax Appellate Tribunal has been designated as TS Real Estate
Appellate Tribunal to manage the affairs under the Act till the regular
Tribunal is established) within 60 days from the date of receipt of this Order.

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

Sd/Sri. Laxmi NaryanaJannu,
Hon’ble Member
TS RERA

Sd/-

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

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