Order Complaint No. 528 of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.528 OF 2022
31st Day of October, 2023
Corum:

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

Jain’s Carlton Creek Flat Owners Association

…Complainant

Versus
M/s Jain’s Housing & Construction Ltd.

…Respondent

The present matter filed by the Complainant herein came up for hearing on
17.10.2023 before this Authority in the presence of Sri Rithik, the Authorised
Representative of the Respondent Builder and none for the Complainant upon
notice, and upon hearing the arguments of the party, 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.
A. Brief facts of the case:
3.

The Complainant submitted that the Respondent Builder failed to register

the Jains Carlton Creek Project before this Authority and also alleged poor quality
of construction wherein numerous pillars in the basement have developed
extensive cracks, compromising the structural integrity of the building. Instead of
implementing proper remedial measures, the Respondent Builder has resorted to a
careless approach, cutting the pillars and filling them with silicon gel, which lacks
any reinforcing properties. He further submitted that there is an inordinate delay in
obtaining Occupancy Certificates (OCs). The Project was granted approval by the

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GHMC under building permit number: 18504/HO/WZ /Cir-11/2012, with
construction scheduled to commence before 26-12-2013 and completion set for 2612-2017. The project was scheduled to be completed by December 2017, but it is
still not complete. Only 3 blocks (A, J, and K) out of 11 blocks have been issued
partial OCs on 27th Feb 2017 (Proceeding Number: 3628/17/01/2012/OC), and 2
blocks (H and J) have been issued partial OCs on 17th April 2021 (Proceeding
number: 1/C20/05563/2021). The remaining 6 blocks are still awaiting their OCs.
This inordinate delay has caused significant financial hardship to the residents i.e.,
the Complainant Association herein, who have had to pay EMIS on their homes
even though they are not able to live in them. He added that even after 10 years,
the project still does not have an operational Sewage Treatment Plant, Rain Water
Harvesting systems, Sufficient borewells for consumption of the inmates, piped gas
as promised, poor quality finishing, etc.
B. Relief Sought:
4.

Accordingly, they prayed for the following reliefs:
a. Direct Jain Housing Construction Limited to register the project Jains Carlton
Creek as a RERA project, in strict compliance with the provisions of the
Telangana State RERA Act.
b. Conduct a comprehensive investigation into the substandard quality of
construction. including the extensive cracks in the pillars, the use of ineffective
remedial measures, and the wide range of structural defects. Ensure that
appropriate rectification measures are taken.
c. Complete the pending project activities like STP, Rain water harvesting, piped
gas line to all flats, usable amenities as promised in amenities block. Enforce
strict penalties and sanctions on JHCL for their failure to comply with relevant
regulations. Initiate an inquiry into the builder's unfair trade and malpractice,
specifically their unauthorized leasing of land to the electricity board without
the consent of the residents and the association.
d. Facilitate the immediate issuance of Occupancy Certificates for blocks (B, C, D,
E, F & G) and the amenities block, ensuring that all safety and quality
standards are met.
e. Undertake stringent monitoring and oversight measures to guarantee the
completion of the project within the shortest possible timeframe, safeguarding
the interests and well-being of the residents.

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f. Implement necessary measures to ensure adequate compensation and redress
for

the

residents,

who

have

endured

considerable

mental

anguish,

inconvenience, and financial losses due to the builder's gross negligence and
non-compliance.
B. Reply on behalf of the Respondent:
5.

Accordingly, vide Notice dated 12.09.2023, served upon the Respondent, this

Authority directed the Respondent to submit a reply in terms of Rule 34 (1) & (2) of
the Rules, 2017 along with such other information with regard to the Project.
Accordingly, vide Reply dated 06.10.2023, the Respondent Builder submitted that
in the year 2011, in prospect of developing a high class multi-storied residential
complex at Gachibowli, Lanco Hills, Hyderabad, the Respondent Builder/Developer
entered into a Joint Development Agreement with land owner viz. M/s.Narne
Homes Pvt Ltd, who obtained Building Permit for said residential development from
Greater

Hyderabad

Municipal

Corporation

vide

BP.No.18504/HO/WZ/Cir-

11/2012, dt.27.12.2012 for 1664 dwelling units and the same was developed in 11
Blocks in an extent of 13.53 Acres. Project was developed in phased manner and
the Phase I of the Project viz.A, K, J, I & H Block was completed in one stretch and
put into customer usage/occupation from the year 2014 and obtained Partial
Occupancy Certificate ("OC") for the same.
6.

With respect to registration of the Project, it was submitted that as the

Building Permit for the Project was obtained in the year 2012, therefore, as per the
Telangana Real Estate (Regulation and Development) Rules 2017, our Project has
been exempted from the Registration under RERA, Act 2016. As regards
construction quality, the Respondent vehemently denied the allegations and put
Owners Association into strict liability for the same. Herein, the construction of the
Phase-I of the Project viz.Block A, K, J, H & I was completed in the year 2014 and it
was under occupation by the residents for more than 7 years and the Owners
Association is taking care of the periodical maintenance of the Project viz.Phase-I.
7.

He added that for the first time in the year 2022, the Owners Association

flagged the issue of locating few cracks in the expansion joint of the podium area of
the structure of Block I & J of the Project. Though, the Respondent is out of Defect
Liability Period, at request made by the Owner Association i.e., the Complainant
Association on good will and gesture and in motto to serve better to the customers,

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the Respondent stepped into addressing the structural issues identified by the
Owner Association at the Respondent’s own cost.
8.

While being so, the Owners Association wrote a letter to GHMC alleging the

structural issues; in turn JNTU was engaged to inspect the Project premises.
Thereafter, JNTU was inspected the reparation works carried out at the Project site
and recommended to address few snag points in the podium area, which was duly
addressed and executed by the Respondent, to the satisfaction of the JNTU and the
same was intimated to the Owners Association. He added that at present there is
no structural issues as alleged by the Owners Association. Further, considering the
welfare of the customers if any structural works to be addressed in the Project in
nearby future, the Respondent is willing to undertake the same.
9.

The Respondent submitted that, considering the welfare of the customers,

over and above the agreed contract and agreement executed between the
Customers/Owners

Association;

Respondent

have

provided

various

facilities/amenities to the residents for their exclusive usage. The following
amenities specifications/amenities were provided apart from the agreed:
• Additional play area with Cricket Practice Court,
• Solar Fencing throughout the Project premises,
• Additional landscape area with artificial lawn and pots, •VDF Grano Flooring at
Basement and Driveway area.
• Additional electrical lamp post and overhead tank, Providing kerb stone in the
common area, etc.
10.

Respondent added that they had sent more than Ten Crores to provide

additional facilities/amenities in the Project premises for the welfare and usage of
the Customers/Owners Association. By virtue of the Reply, Respondent submitted
that though the Respondent has been flexible and accommodating the genuine
request put forth by the Owners Association, in the past in several occasions the
Owners Associations have intentionally spoiled their sales and marketing activities
by affixing banners/placing placards against the Respondent in the Project
premises to look after their unlawful demands. Therefore, the Respondent prayed to
drop the complaint lodged against them.

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11.

Subsequently,

hearing

was

conducted

on

17.10.2023,

wherein

the

Respondent appeared and reiterated the contents of his reply thereby focusing on
the point that the GHMC Permission was granted in the year 2012 and therefore
the Project does not fall under the jurisdiction of this Authority. Complainant, upon
notice did not appear.
E. Observations and Directions of the Authority:
12.

Section 3(2) of the Act provides that no registration of the real estate project

shall be required where the promoter has received completion certificate for a real
estate project prior to commencement of this Act, however, admittedly, only partial
Occupancy Certificates have been obtained for certain blocks in the entire Project
by the Respondent Builder. This entails that registration under the provisions of
this Act are applicable and the blocks/phases for which Occupancy Certificate is
not obtained, need to be registered under Section 3 & 4 of the Act, 2016.
13.

It is a well-established law that Act prevails over Rules. Therefore, even

though the Rule 1(2) provides that the Rules are applicable only on those projects
which have obtained building permissions on or after 01.01.2017, as the Act
provides that the registration is applicable on projects for which Completion
Certificate/Occupancy Certificate has not been issued, (particularly those projects
compelled to obtain a Completion Certificate as per Government Order G.O.M.s
No.86 dated 03.03.2006) and therefore, it was imperative upon the Respondent
Builder to have registered the blocks for which Completion Certificate has not been
obtained.
14.

In lieu thereof, following directions are passed:
a. As the Respondent Builder is willing to undertake to meet the structural
deficiencies as raised on part of the Complainant Association, the
Respondent Builder is hereby directed to address the Association's requests
within 30 days from the issuance of this Order, and
b. Respondent Builder is directed to register the blocks for which Occupancy
Certificates have not been issued before this Authority within 30 days from
the date of this Order.

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15.

The matter is disposed of on the above terms. Parties are hereby informed

that non-compliance with the Orders of the Authority shall attract Section 63 of the
Act, 2016.
16.

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. 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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