Order Complaint No. 515 of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.515 OF 2023
24th Day of June, 2024
Corum:

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

1. Sri Kandi Lakshma Reddy
2. Sri Mahesh PVS
3. Sri D. S. G. Krishna
4. Sri Ch. Satya Vara Prasad
5. Sri Narender Reddy
6. Smt. T. Uma Devi
7. Sri T. S. S. Chakravarthi
8. Sri Santosh Manapragada

…Complainants
Versus

M/s Abhi Constructions
Represented by its Managing Director,
Sri Doneti Srinivasa Reddy

…Respondent

The present matter filed by the Complainant herein came up for hearing on
03.04.2024 before this Authority in the presence of Counsel for the Complainant,
M/s MNR Law Chambers through Sri Naresh Kumar and none for the Respondent
despite service of notice and upon hearing the arguments, this Authority passes the
following ORDER:

2.

The present Complaint has been filed under Section 31 of the Real Estate

(Regulation and Development) Act, 2016 (hereinafter referred to as the “Act”) read
with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules,
2017 (hereinafter referred to as the “Rules”) requesting appropriate action against
the Respondent Builder.

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Brief facts of the case:
3.

The Complainants submitted they are the residents of Tirumalahills,

Narayanadri

&

Venkatadri

registered

with

this

Authority

vide

Rgn.

No.

P02200001922. That there are multiple short comings to fulfil the proposed/agreed
standards, incomplete hand over and no maintenance ownership by the Respondent
Builder and following are the issues:

a. One of the Three Elevators installation yet to be completed (Small cabin size
(4 members) provided, lower than standard 82 flats)
b. Solar/electric fencing has not been provided as per the commitment.
c. Multiple water leakages [Internal & External water leakages] are present in
common area, cellar and terrace area due poor quality of the construction.
d. Lower capacity water connection [25 mm] provided for 82 flats, resulting
insufficient water supply to 82 flats.
e. Poor quality of construction, plumbing and electric wiring in the individual
flats
f. Improper civil work carried out in the Ramps of entry/exit gates and lift
foundation, water proofing.
g. Conversion of common area meter from commercial to residential has not been
done.
h. Main drainpipe line work done in very inappropriate manner.
i.

No entry or driveway provided for fire engine/etc for all sides of community on
the ground floor.

j.

Apartment surroundings were not cleaned properly while handing over.

k. No maintenance ownership and zero response to the communication from
residents
l.

Storm water drain is not provided.

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m. Wiring issues are there in intercom/internet wiring provided by the builder.
n. Parking tiles not provided for both the cellars.
o. Common area & parking area encroachment by landowner against the interest
of all the residents in the community.

4.

Accordingly, they prayed to direct the Respondent to rectify above-mentioned

issues faced by residents of Tirumalahills, Narayanadri & Venkatadri.

Reply on behalf of the Respondent:
5.

Vide Reply dated 11.08.2023, the Respondent submitted that the project has

been fully completed and obtained Occupancy Certificate on 04.03.2021. The
maintenance and ownership of the building has been handed over to its
customers/flat owners and it has been 2 and ½ years since the Owners Welfare
Association took over the building responsibilities.

6.

In respect of point-wise reply, the Respondent submitted as under:
a. Three

Elevators

installation:

Respondent

got

into

a

contract

with

ThyssenKrupp for installing 3 lifts in 2 blocks and 90% of the money was paid
to the vendor in November 2019. Due to Covid and poor management of the
ThyssenKrupp company, they took a long time in completing the installation
of 2 lifts and 1 lift has some pending work. Respondent is pursuing with the
vendor company to bring the 3rd lift operational.
b. Solar/electric fencing: Solar fencing is provided, Respondent undertakes to
provide the proofs also. This is completely false statement. In addition to that
Respondent has provided heavy flood/streets lights in the setback area and
concrete pit with flower plants around the border which were completed
during the handover.

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c. Multiple water leakages: There were no leakages found but after 2 years the
association did some additional works due to that few drainpipe were
damaged.
d. Lower capacity water connection: Respondent has given 50mm water line as
per the HMWS specifications.
e. Poor quality of construction: Respondent is a reputed construction company
and never compromised in quality. Unfair and biased judgement from the
customers.
f. Improper civil work: Not in our scope.
g. Drainpipe line: Respondent did the very best drainage system to the building.
h. No entry or driveway provided for fire engine: Building has four side roads and
no ramps are required. Entry and exit gates were built in a very good manner.
i.

No maintenance ownership: Maintenance after handover is completely
association's responsibility so it is not applicable.

j.

Storm water drain: Storm water drainage on the roads is completely
municipality scope and not in Respondent’s scope.

k. Wiring issues: Respondent did very good quality wiring and electricity works
for the building.
l.

Parking tiles: Respondent spent huge money for VDF floorings in cellars
instead of tiles for better strength and durability which was conveyed and
completely accepted by the allottees during handover. Parking tiles were
installed on the ground floor.

m. Common area & parking area encroachment: Completely untrue. They are
according to the plan.

7.

The Respondent further submitted that the Respondent completed the Project

with no compromise in quality. These are false allegations to get the incomplete lift

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work which we are promising to get it done even with alternative vendors, since the
original vendor failed in completing the task.

Observations and Directions of the Authority:
8.

This Authority has heard the matter on several occasions i.e., on 17.10.2023,

15.11.2023, 20.12.2023, 30.01.2024, 15.02.2024 and 03.04.2024. during the said
hearings, despite service of notice, the Respondent failed to appear and hence was
set ex-parte on 03.04.2024.

9.

The Complainants, on the final hearing, submitted that the Respondent was

obligated to construct the said project in accordance with the agreed specifications,
but failed miserably in constructing the project as per the promised quality standards
and there exists several shortfalls and deficiencies in provision of amenities, due to
which the numerous families residing in the project are facing hardships on day-today basis. The Respondent while selling flats in the said project had advertised and
promised several amenities and features, trust, quality, and service, etc., in their
brochure and other documents to attract the customers, but the Respondent had
failed to deliver the same even after several months of selling flats to the
Complainants.

10.

It was submitted that the Respondent had promised to provide Three (3)

Independent 6-Passenger lifts, but till date only 2 of them have been installed, and
the 3rd lift is yet to be completed. Even out of the two installed lifts one of them has
been non- operational/defunct since several months, and the lifts provided have
small cabin size (sufficient for just 4 members), which is lower than standard and
not sufficient for serving the residents of 82 flats. Despite bringing this to the
Respondent's notice several times, he has taken no steps to either complete the

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installation of 3 lift within guaranteed timeline or get the defunct lift repaired and
address the issues of residents. In response to the Complaint, the Respondents have
simply shifted the blame onto the vendor company for installation and maintenance
of the lifts, despite lapse of several months and suffering of the residents. Even after
the Complainants approached this Authority, the Respondent has evaded liability by
merely stating that they are pursuing with the vendor company, without any specific
timeline and responsibility towards residents of the said project.

11.

Further, the Respondents even promised to provide Electric/Solar Fencing to

the said project, but the same has not been fulfilled yet for reasons best known to
them. Despite that, the Respondent claims to have provided solar fencing and provide
proof also, but if the solar fencing is indeed provided and operational, it cannot be
the case of the Respondent that all the residents of the project cannot see it or they
are false. The Respondent had sufficient time to submit proof of the same while filing
their reply and till date they have not done so, which explains their evasive nature.

12.

It is submitted that, due poor quality of the construction material and work

there exists multiple water leakages (Internal & External) in the common area, cellar
and terrace area of the Project, and the Respondent instead of getting the repairs
done has indulged in blaming the association for getting some works done which
damaged the drainpipes, which is absurd. As the residents were compelled to get
some repairs done when the Respondent refused to do the same, and to avoid daily
hassles with multiple leakages the residents performed some repairs., which was the
responsibility of the Respondent, having constructed the project with substandard
material and improper woks.

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13.

The Respondent had promised that the said project would be constructed as

per standard quality and specifications promised in their brochure and terms of
DAGPA, which has not been fulfilled. And the Respondent claims of being a reputed
construction company, but the same is not reflected in the quality of the construction
of the project which is riddled with many defects such as:
i.

poor quality of construction evident from visible cracks developed on various
walls, roofs, etc., that too within few months of project completion

ii.

low water capacity pipelines (25mm instead of 50mm) leading to insufficient
water supply to the residents of 82 flats and improper drainage pipeline work
done by the Respondent is causing hardship to the Complainants even for
basic necessities on daily basis. And the Respondent's claim of providing the
'best drainage system to the building' is not only exaggeration but arrogance
on part of the Respondent in recognising the openly visible defects and getting
them fixed.

iii.

inferior quality of plumbing works and electrical wiring provided leading to
frequent repairs, issues with intercom/internet cabling within few months of
handover, and the additional cost incurred by the residents due to the substandard works of the Respondent, who have simply claimed to have done
'very good quality wiring and electricity works' without any specific mention of
actual material/specifications used in the construction, which led to such
deplorable state within few months of project completion.

iv.

lack of storm water drains, which would facilitate the rainwater harvesting
and also help in reducing water logging and blocking of drains.

v.

Improper civil work carried out in the Ramps of entry/exit gates and lift
foundation.

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vi.

Improper water proofing work done by the Respondent, leading to frequent
leakages and inconvenience to the residents.

14.

That in addition to the above deficiencies on part of the Respondent, his

inaction on the encroachment of common area and parking area by the landlord
against the interest of all the residents including the Complainants, points to the
Respondent's complicity.

15.

They submitted that due to the negligent and evasive actions of the

Respondent, the Complainants have been subjected to severe hardships on daily
basis even after paying huge amounts for purchasing the flats in the said project
with promised quality and amenities, which the Respondent has failed to deliver. As
such the Complainants including 82 families residing in the project are compelled to
take up frequent repairs leading to loss of valuable time and money and are unable
to lead a comfortable life despite shelling out lakhs of rupees in buying their flats.

16.

They categorically also submitted that the provisions of the Act, 2016 clearly

mandate that, in case any structural defect or any other defect in workmanship,
quality or provision of services or any other obligations of the promoter as per the
agreement for sale relating to such development is brought to the notice of the
promoter within a period of five years by the allottee from the date of handing over
possession, it shall be the duty of the promoter to rectify such defects without further
charge, within thirty days, and in the event of promoter's failure to rectify such
defects within such time, the aggrieved allottees i.e. the Complainants shall be
entitled to receive appropriate compensation in the manner as provided under the
Act.

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17.

It was further submitted that, due to the irresponsible and neglectful attitude

of the Respondent in fixing the defects in building, the allottees including the
Complainants were compelled to incur huge expenses amounting to about Rs.
23,68,740/- (Rupees Twenty-Three Lakh Sixty-Eight Thousand Seven Hundred and
Forty Only) by pooling funds among themselves, for taking up various repairs, civil
works including manjeera water connection, plumbing works, lift, solar fencing,
internet cabling works, material cost, etc.

18.

Further that, the Respondent is obligated under the Act to hand over the

physical possession of the apartment to the allottees and the common areas to the
association of the allottees, and the other title documents pertaining thereto within
specified period, but till date the Respondent has failed to hand over original linked
documents, flat allotment letter and NOC from builder to the allottees including the
Complainants. Due to the lack of link documents, NOC from builder, etc., the
allottees are unable to transfer their loans to other banks and are stuck with paying
higher interest rates and additional charges. Moreover, the builder and landlord
threatened the Complainants stating that they would use or sell the extra parking
spaces to outsiders and also open space in ground floor where flats were not
constructed as they were above the ramp area, which is clear violation of the
sanctioned plan and regulations, and also against the interest of the allottees.

19.

Evidently, the Respondent failed to deliver the project as per the prescribed

standards and have failed to discharge their obligations towards the Complainants
and their actions are in abject violation of the provisions of the RERA. Hence, the
Respondent is obligated to perform their duties in making good the shortcoming
plaguing the said project and complete repairs as necessitated to address the
Complainants issues in a time bound manner, and the Complainant is also entitled

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to compensation for the aforesaid actions of the Respondent and loss incurred due
to them.

20.

Accordingly, they prayed for the following reliefs:
a. Direct the Respondent to complete the pending works, take up necessary
repairs/civil works on the said project, as prayed for in the complaint within a
time bound manner.
b. direct the Respondent to pay an amount of Rs. 23,68,740/- (Rupees TwentyThree Lakh Sixty-Eight Thousand Seven Hundred and Forty Only) for expenses
incurred by the complainants and allottees for getting done various works,
installations, repairs, civil works, material cost, etc., in the said project, along
with interest from the date of payment until date of realisation.
c. direct the Respondent to pay Compensation of Rs. 5,00,000/- (Rupees Five
Lakh Only) to the Complainants for causing mental agony, loss of time, hardship
and litigation expenses incurred by the Complainant.
d. to appoint a commissioner/expert in construction or engineering or from any
other discipline as it deems necessary, to conduct inquiry into the
aforementioned defects in workmanship, sub-standard construction, quality or
provision of services and other obligations of the Respondent.
e. And issue suitable directions or orders, in the interest of justice.

21.

In light of the aforementioned facts, this Authority, deems it relevant to extract

the pertinent provisions under the Act, 2016 more specifically Section 14 read with
Section 11(4)(d), (e), (g) which provide as under:
Section 14(3)
“(3) In case any structural defect or any other defect in workmanship, quality or
provision of services or any other obligations of the promoter as per the agreement for

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sale relating to such development is brought to the notice of the promoter within a
period of five years by the allottee from the date of handing over possession, it shall
be the duty of the promoter to rectify such defects without further charge, within thirty
days, and in the event of promoter's failure to rectify such defects within such time,
the aggrieved allottees shall be entitled to receive appropriate compensation in the
manner as provided under this Act.”
Section 11(4)(d), (e), (g)
“(d) be responsible for providing and maintaining the essential services, on reasonable
charges, till the taking over of the maintenance of the project by the association of the
allottees;
(e) enable the formation of an association or society or co-operative society, as the case
may be, of the allottees, or a federation of the same, under the laws applicable:
Provided that in the absence of local laws, the association of allottees, by whatever
name called, shall be formed within a period of three months of the majority of allottees
having booked their plot or apartment or building, as the case may be, in the project;
(g) pay all outgoings until he transfers the physical possession of the real estate project
to the allottee or the associations of allottees, as the case may be, which he has
collected from the allottees, for the payment of outgoings (including land cost, ground
rent, municipal or other local taxes, charges for water or electricity, maintenance
charges, including mortgage loan and interest on mortgages or other encumbrances
and such other liabilities payable to competent authorities, banks and financial
institutions, which are related to the project):
Provided that where any promoter fails to pay all or any of the outgoings collected by
him from the allottees or any liability, mortgage loan and interest thereon before
transferring the real estate project to such allottees, or the association of the allottees,
as the case may be, the promoter shall continue to be liable, even after the transfer of
the property, to pay such outgoings and penal charges, if any, to the authority or

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person to whom they are payable and be liable for the cost of any legal proceedings
which may be taken therefor by such authority or person”

22.

Even after considering the contentions raised in the Reply filed by the

Respondent, the conduct of the Respondent is apparent and proves his irresponsible
attitude to the allottees/complainants. Therefore, while considering the contentions
of both parties, the following directions are issued:
a. Three Elevators installation: As promised by the Respondent in its Reply dated
11.08.2023, the Respondent is directed to undertake the installation of the
third lift within 60 days. The Respondent, for having violated Section 11(4)(d)
and not providing the elevator as promised, is liable for penalty of
Rs.4,00,000/- (Rupees Four Lakhs Only) payable within 30 days in favour of
TS RERA FUNDS through Demand Draft or online payment to A/c
No.50100595798191, HDFC Bank, IFSC Code: HDFC0007036, failing which
appropriate action under Section 63 of the Act, 2016 shall be initiated against
the Respondent; and
b. Solar/Electric fencing: As promised by the Respondent in its Reply dated
11.08.2023, the Respondent, if not provided by the Respondent as alleged by
the Complainants, shall provide within 60 days; and
c. Terrace flooring leakage: The Respondent shall repair the leakages on the
terrace flooring at places where such leakages are noticed; and
d. Wiring for Intercom: The Respondent shall ensure that wiring for intercom is
provided; and
e. Parking tiles: It is observed that Respondent mentioned VDF flooring has been
laid in the parking area, which is better quality than parking tiles; and
f. Encroachments: If there are any encroachments in common areas/parking
area, the same shall be removed within 30 days; and

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g. Regarding relief (b) as mentioned in paragraph 20, if any money is spent or
incurred by the Complainants towards infrastructure, it is the duty and
responsibility of the Respondent to re-imburse the same within 60 days; and
h. Regarding relief (c) as mentioned in paragraph 20, the Complainants may
approach the Adjudicating Authority under appropriate form for such reliefs.
i.

Regarding relief (d) as mentioned in paragraph 20, the Authority has felt there
is no need to appoint a commissioner/expert to conduct inquiry into the
defects in workmanship, sub-standard construction, quality or provision of
services and other obligations of the Respondent at this stage.

23.

In lieu thereof, the present Complaint stands disposed of. The Parties are

hereby informed that failure to comply with the directions of the Authority shall
attract appropriate action under Section 63 of the Act, 2016.

24.

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)
in accordance with Section 44 of the Act, 2016.

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

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

Sd/Dr. N. Satyanarayana, IAS (Retd.),
Hon'ble Chairperson,
TS RERA

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