Order Complaint No. 56 of 2024

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Complaint No. 56 of 2024
30th July 2025
Quorum:

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

Village Pointe Apartment Flat Owners Maintenance Mutually aided Cooperative Society
Limited,
(Cellar Office Room, Village Pointe Apartments,
Road No.1 Alkapoor Township, Neknapur,
Manikonda, Hyderabad-500089)

…Complainant
Versus
M/s RR BUILDERS
(Rep. by its Managing Partners 1: Sri. Srinivas Reddy Kisari,
Flat No: 1201, Block LE7,
Lanco Hills Residential Towers,
Near Marrichettu, Manikonda - 500089)
(Rep. by its Managing Partners 2: Sri. Adi Reddy Dondeti,
Flat No: 401, ARYMITHRA VERBENA,
Road No.28, Alkapoor Township - 500089)

…Respondent
The present matter filed by the Complaint herein came up for hearing on 12.04.2025 before
this Authority wherein Sri Siva Kumar, Counsel for the Complainant Association, along with the
Complainant Association in person, and Sri Rohit Pogula, Counsel for the Respondent, along with
the Respondent in person. After hearing the arguments from both parties, this Authority passes the
following ORDER:
2.

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

Estate (Regulation & 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”) seeking appropriate relief(s) against the Respondent.
A. The Brief facts of the case as per allegations/averments contained in the complaint are as
follows:
3.

The Complainant herein above is the association of flat owners of Village Pointe Apartments,

a gated community. The Complainant association has approached this Authority seeking necessary
reliefs against the Respondent in relation to various structural and maintenance related issues in the
apartment, including persistent defects such as, water leakages, seepages, structural cracks, and
non-fulfilment of certain commitments made at the time of sale. The Complainant association
further submitted that the on-going issue of water leakage in the guest rooms and swimming pool

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The Complainant association submitted that the property suffers from multiple issues,

including structural flaws, leakages, seepages, and visible cracks. These deficiencies raise serious
concerns about the safety and overall quality of the construction, necessitating immediate attention
and resolution.
5.

That the commitments made at the time of sale remain unmet, particularly about providing

bore wells and rainwater harvesting pits. These omissions represent a significant deviation from
the representations made by the developers, and urgent measures are requested to rectify this noncompliance.
6.

That the swimming pool is experiencing leaks, which have resulted in water seepage into the

guest rooms located beneath it. This issue poses a significant risk to the structural integrity of the
building and requires urgent attention to prevent further deterioration.
7.

That water leakage in the basement parking area is causing damage to parked vehicles. This

issue is a source of inconvenience and potential financial loss for residents, necessitating immediate
resolution.
8.

The Complainant further submitted that there are multiple instances of leakages and seepages

in the cellar and corridors. Additionally, visible structural cracks have been identified in certain
areas of the building, raising serious concerns about the safety and stability of the structure. A
thorough inspection and timely remedial measures are required to address these issues.
9.

Despite the commitment mentioned in the occupancy certificate, there is a lack of rainwater

harvesting pits on the property. This non-compliance with sustainable water management practices
undermines the commitment to environmental responsibility, and intervention is requested to
ensure the implementation of rainwater harvesting measures.
10.

In conclusion the Complainant association submitted that the property is not aligned with

the representations made during the sale. It is urged that necessary actions be taken to ensure that
all commitments made by the Respondent are fulfilled.

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In view of the above-mentioned facts and circumstances, the Complainant association has

prayed for the following reliefs:
a) Rectification of Swimming Pool Problems, Water leakage in the basement parking area,
b) Immediate rectification of structural issues including leakages, seepages, and cracks at all
other places.
c) Installation of the promised number of rain water harvesting pits as per commitments.
d) Any other necessary actions to align the property with the representations made during the
sale.
C. Respondent’s Reply:
12.

The Respondent, vide its counter affidavit submitted all construction and sale-related

obligations were fulfilled in accordance with applicable standards and commitments.
13.

That the construction undertaken by Respondent adhered to stringent quality control

measures at every phase to ensure the structural integrity and long-term durability of the
apartments.
14.

Further, the reported leakages or cracks in the basement swimming pool were investigated

promptly and necessary remedial measures were taken. These issues, however, may also stem from
factors such as inadequate maintenance by the occupants. The association's management committee
has not cooperated with the Respondent’s efforts to resolve such matters. The alleged cracks in the
corridors are, in fact, expansion joints required for structural safety, a fact that has been
communicated to the management, which unfortunately has not accepted this technical explanation.
15.

It was further averred by the Respondent that, all commitments concerning the provision

of bore wells and rainwater harvesting systems have been met. These provisions were implemented
in compliance with all regulatory mandates. Additional rainwater harvesting pits were deemed
unnecessary and posed hindrances to parking and movement, and thus were not constructed. No
adverse effect has been caused to residents or the environment.
16.

The Respondent stated that he has always maintained a commitment to high standards of

construction and ethical practices and thereby prayed to dismiss the present complaint.
D. The points for determination on the reliefs sought in the main complaint are as follows:
17.

After hearing from both parties at length, the following question arises for our consideration

in the present complaint:

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Whether the complaint is entitled to relief as prayed for? If yes, to what extent?

E. Observations of the Authority
Point I
18.

The Authority has duly considered the documentary and photographic evidence produced

by the Complainant, including the counter filed by the Respondent and the Memo’s thereto. The
principal grievances raised and highlighted by the Complainant association are as follows:
a) The failure of the Respondent to rectify of Swimming Pool Problems, Water leakage in the
basement parking area.
b) Immediate rectification of structural defects such as leakages, water seepages, and cracks
across various areas of the property.
c) Non-installation of the promised number of rain water harvesting pits as per the
commitments made during the sale.
19.

Both the Complainant Association and the Respondent appeared before this Authority. The

Respondent, represented by its Managing Partners, expressed willingness to complete all pending
works as raised by the Complainant Association. Accordingly, this Authority directed the
Respondent to carry out the said works and submit progress reports during each hearing. In
compliance, the Respondent has submitted multiple memos over the course of the proceedings.
20.

The Complainant Association has also filed memos in response to the status updates

submitted by the Respondent. However, in one of the memos filed by the Complainant, additional
issues relating to the Sewage Treatment Plant (STP), ventilation, and methane gas concerns were
raised, which were not originally pleaded in the main complaint. Hence, this Authority confines its
adjudication solely to the issues raised in the main complaint, namely: the swimming pool defects,
water seepage in the basement and other areas, and the installation of rainwater harvesting pits.
21.

In view of the reliefs as prayed for, the issues raised by the Complainant Association are

examined hereunder:
a. Rectification of Swimming Pool Leakages and Related Dampness Issues:
22.

The Complainant Association has raised concerns relating to persistent leakages from the

swimming pool resulting in dampness and seepage into guest rooms located below the pool area.
It was submitted that, despite the Respondent’s assurances, the issues remain unresolved and that
the pool was still not fully operational at the time of the final hearing.

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In the memo dated 17.04.2025 filed by the Respondent, it has been stated that all necessary

remedial measures in relation to the swimming pool have been undertaken. The Respondent has
detailed that waterproofing works, including buffing, polyurethane coating, plastering, and tile
replacement, have been completed in the gutter, header tank, and balancing tank areas. It is further
stated that the pool has been filled since the end of January 2025 and has been in use by residents
without any fresh reports of leakage, except for residual dampness in earlier identified locations.
Buffing in the guest rooms located below the pool was also stated to be completed.
24.

However, in the memo filed by the Complainant Association, it is submitted that the pool

was handed over only two days prior to the final hearing and is still under testing. Certain associated
works, such as grill work and pending tile replacements, have not been completed. The Association
has requested a formal five-year warranty from the date of full operational commissioning and has
proposed appointment of a third-party vendor in case any further leakage is noticed, at the
Respondent’s cost. The Authority finds this request reasonable given the nature and location of the
defect and the prolonged delay in rectification.
b. Rectification of Water Leakages, Seepages and Structural Cracks Across the Project:
25.

The Complainant Association seeks comprehensive rectification of structural issues,

including persistent leakages and visible cracks across various blocks, corridors, cellar areas, and
walls of individual units.
26.

The Respondent, in its memo dated 17.04.2025 and supporting documents, has stated that

all identified leakage points over the past eight months, particularly in expansion joints, basement,
ramp area, and header tanks, have been addressed using PU grouting and waterproofing methods.
The Respondent has also recommended that the Association put in place an Annual Maintenance
Contract (AMC) to ensure long-term upkeep and mitigate future issues.
27.

However, the Complainant has submitted a detailed list of units and locations where

seepages and dampness persist. Several of these locations are marked as "not attended" or "work
in progress" as per the leakage report filed by the Association. The structural inspection report dated
26.11.2024 submitted by a certified structural engineer confirms the continued presence of water
ingress in the cellar roof, expansion joints, and water tanks, and recommends surface waterproofing
and other civil works, estimating the repair cost at over ₹86 lakhs. The Authority notes that while
some of the repair works have been undertaken, the larger issue of structural dampness and
waterproofing remains incomplete.
28.

It is also pertinent that the Respondent, during the course of the proceedings, expressed

willingness to carry out all pending works as per the compromise reached between the parties.

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The Complainant Association has submitted that the Respondent failed to install the number

of rain water harvesting pits promised at the time of sale. This has resulted in non-compliance with
sustainable building practices and approved project plans.
30.

The Respondent, in its counter, has contended that the required number of pits were installed

and that additional pits could not be constructed due to space constraints which would affect
vehicular movement and parking areas. However, no evidence has been furnished to establish
compliance with the original commitment made at the time of sale. Further, the Complainant has
pointed out that the absence of sufficient rainwater harvesting infrastructure adversely affects the
environmental performance of the project.
31.

The Authority finds that failure to install rainwater harvesting pits, as per the original

representations, constitutes a deficiency in service and non-fulfilment of obligations under the Act.
The Authority directs that these works be completed in consultation with the Complainant
Association, without compromising functionality of the project amenities.
32.

Upon cumulative assessment of the facts and materials on record, it is evident that the

structural deficiencies in the project, namely water leakages in the swimming pool, basement
seepages, cracks in the building fabric, and incomplete service installations, fall within the scope
of defect liability as defined under Section 14(3) of the Real Estate (Regulation and Development)
Act, 2016. The said provision reads as follows:
“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 shall be entitled to receive appropriate compensation in
the manner as provided under this Act.”
33.

In the present case, possession was handed over in May 2021, and the defects have been

consistently raised by the Complainant Association within the five-year defect liability period.
Although the Respondent has shown some willingness and effort in rectification, the works remain
incomplete and the deficiencies persist.

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Hence, this Authority is of the view that the Respondent is in breach of the statutory

obligation under Section 14(3) of the RE(R&D) Act, 2016 and holds that the Complainant
Association is entitled to reliefs as prayed for. Directions for compliance are accordingly issued.
F. Directions of the Authority:
35.

Based on the facts submitted, evidence on record, and the findings given thereon by us as

discussed herein above, this Authority directs the Respondent the following:
36.

In the view of above findings of the Authority as recorded above, the following directions

are issued under Section 14(3) of the RE (R & D) Act, 2016, which places a mandatory obligation
upon the promoter to rectify any structural defect or any other defect in workmanship, quality or
provision of services as may be brought to their notice by the allottee within a period of five years
from the date of handing over possession. In accordance with this statutory provision, and keeping
in view the persistent issues such as seepage, cracks, swimming pool leakage, and non-functioning
amenities.
i.

The Respondent is hereby directed to complete all outstanding rectification work, including
the remaining civil works specified in the complaint, within 60 days from the date of this
order.

ii.

If the Respondent fails to comply with the directions herein, shall attract Section 63 of the
RE (R&D) Act, 2016.

37.

The Complaint is disposed of in lieu of the above directions. No order as to costs.

Sd/-

Sd/-

Sd/-

Sri. K. Srinivasa Rao,
Hon’ble Member

Sri. Laxmi Naryana Jannu,
Hon’ble Member

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

TG RERA

TG RERA

TG RERA

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