Order Complaint No. 68 of 2024

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Complaint No.68 of 2024
30th Day of October 2024
Corum:

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

Smt. Shruti Bedi

…Complainant
Versus

M/s Greenspace Housing and Engineers Pvt. Ltd.
Represented through its Authorised Representative,
Sri Allu Govind Reddy

…Respondent

The captioned matter filed by the Complainant above named came up for
hearing on 29.08.2024 before this Authority in the presence of the Complainant in
person and Counsel for the Respondent, Sri A. Chandra Mohan and Ms. P.
Abhinandana Mala, and 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”) seeking appropriate reliefs against the
Respondent.

3.

This Authority is in receipt of Memo dated 14.08.2024 filed by the

Complainant submitting that she seeks to withdraw the present complaint and
pursue the Complaint before the Hon’ble Consumer Forum regarding the same

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dispute/relief prayed for. It was, however, requested by the Complainant to take
appropriate action against the Respondent for non-registration of the Project with
the Authority in accordance with Sections 3 & 4 of the Act, 2016.

4.

In light of the above-mentioned Memo, the matter is closed as withdrawn.

However, since it has come to the knowledge of the Authority that the Project i.e.,
“Greenspace Grand” belonging to the Respondent herein is not registered with this
Authority despite the same falling within the jurisdiction in accordance with Section
3 of the Act, 2016, it is imperative to take appropriate action by this Authority. In
this regard, a Show-Cause Notice dated 18.06.2024 has been served on the
Respondent.

5.

The Respondent filed a Reply dated 27.07.2024. Relevant extract of the same

is reproduced hereunder:
“It is submitted that the said project in the name "Greenspace Grand" was
developed by the firm M/s Greenspace Housing and Engineers Pvt. Ltd. when
it was under ownership of one Sri Venkata Reddy, and I was one of the
partners. Whereas, I have become the Managing Director of the said firm only
after the year 2019 when the previous member has exited the firm.

It is submitted that the project "Greenspace Grand" had obtained technical
approval from the
a. HMDA vide Letter No. 202886/BP/PIg/H/2015 dated: 04.08.2016;
by complying to all the obligations
b. Application of M/s Greenspace Housing & Engineers Pvt Ltd, Dt
03.05.2016,

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c. Letter releasing DC Letter vide No. 202886/BP/Plg/H/2015 dated
12.07.2016.
d. The firm remitted the DC amount and replied to the concerned office
by 26.07.2016
e. Submitted Mortgage executed in favor of M.C. HMDA vide Doc.
No.4457/2016 dated 22.07.2016.
f. Gift Deed for public purpose in favor of Gram Panchayath Puppalguda
Doc. No. 4477/2016 dated: 23.07.2016.

It is submitted that though we had complied to all the above process in regard
with the project in the year 2016 and started construction of the project.
Whereas due to the Covid-19 and subsequent issues, further procedures have
been delayed inadvertently i.e. we could obtain relinquishment of mortgaged
property only in 2020, i.e. the authorization from HMDA for relinquishment deed
for

mortgaged

flats

vide

Lr.No.

202886/BP/PIg/HMDA/2015

dated

19.12.2020.

It is evident from the above submissions that the said project permission was
obtained well before the RERA came into effect in 2017 and thus, technically
we are not in non-compliance under the Section 3 and 4 of TG RERA. Whereas
it is submitted that as alleged we have not engrossed any rules while the project
was taken up nor after the completion of the same.”

6.

A perusal of the said reply makes it abundantly clear that the Respondent has

not submitted any acceptable explanation as to why the project was not registered
with this Authority. Admittedly, as per the Respondent’s own submission, the project
was completed in all respects only in the year 2020 i.e., after the relinquishment
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deed from the HMDA was issued vide Lr.No. 202886/BP/PIg/HMDA/2015 dated
19.12.2020. It is presumed by this Authority that mortgage of the flats is released by
the competent authority/HMDA only when the HMDA has satisfied itself that the
project has been completed in all respects in accordance with the sanctioned plan
issued by it. Therefore, it can be concluded that project was still on-going as on the
date of commencement of this Act, 2016.

7.

Proviso to Section 3 clearly stipulates that “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. As the Project had not obtained a completion certificate or
occupancy certificate as of the date of the commencement of this Act, the project was
still deemed to be under development. It was only in the year 2020 that the
Respondent got released the mortgage over the flats through the competent
authority, categorizing the project as fully completed. Consequently, it was the
binding obligation of the Respondent Promoter to have registered the Project
following the commencement of the Act in 2016, as the development was ongoing at
that time.

8.

Therefore, this Authority deems it fit to impose penalty vide its powers under

Section 38 read with Sections 59 & 60 of Rs.8,45,983/- (Rupees Eight Lakhs FortyFive Thousand Nine Hundred and Eighty-Three Only) for violation of Sections 3 & 4
of the Act, 2016 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.

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9.

The Respondent hereby is also directed to file an application for registration

of the Project “Greenspace Grand” before this Authority in accordance with Section
4 of the Act, 2016 and the Rules thereunder with immediate effect. Failing to comply
with above said directions by the Respondent shall attract penalty under Section 63
of the Act, 2016.

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

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

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

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