Order Complaint No. 75 of 2024

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Dated: 14th October 2025
Coram:

Dr. N. Satyanarayana, IAS (Retd.), Hon’ble Chairperson
Sri K. Srinivasa Rao, Hon’ble Member
Sri Laxmi Narayana Jannu, Hon’ble Member
Complaint No. 75/2024

Matam Parmenshwar
(19-817/1, Reddy Colony,Miryalaguda, 508207, Distict Nalgonda Telangana )
…Complainant
Versus
M/s. Modi Realty

(Rep by its Sohan Modi,Door, 5-4-187/344, 2nd floor, Sohan Mansion, MG Road, Seundrabad, Telangana
– 500003),

…Respondent
Complaint No.82/2024
P.Gurumurthy
(AVR Gulmphar homes, villa no. 63, Beside D mart, Bapujinagar Miryaluguda- 508207)
…Complainant
Versus
M/s. Modi Realty
(Rep by its Sohan Modi,Door, 5-4-187/344, 2nd floor, Sohan Mansion, MG Road, Seundrabad, Telangana
– 500003),

…Respondent
The present matter file by the Complainants herein came up for hearing before
this Authority in presence of Complainants in person and Respondent Counsel Sri MA Lateef
and; upon pursuing the material on record and on hearing arguments of the both the parties and
having stood over for consideration till this day, the following order is passed:
ORDER
2.

The present Complaints have been filed by the Complainants under Section 31 of the

Real Estate (Regulation & Development) Act, 2016 (hereinafter referred to as the “RE(R&D)
Act”) read with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules,
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As the issues raised in both complaints are substantially similar and arise out of the same

project and developer entity, the matters were clubbed and heard together for the purposes of
adjudication. The Authority hereby passes the following COMMON ORDER:
A. The brief facts of the case, as stated by the Complainant, are as follows:
4.
The Complainants are residents and possessors of villas situated in the project titled
“AVR Gulmohar Homes”, which is duly registered with this Authority under RERA Registration
No. P010800000180
5.
The Complainants have raised multiple grievances pertaining to infrastructural
deficiencies, incomplete works, and non-provision of agreed amenities in the said project. The
primary issues highlighted include:
a. The underground drainage system is reportedly constructed at a lower level than the road
surface, causing stagnation of wastewater, which does not flow out naturally.
Consequently, residents are compelled to remove the excess water manually with electric
motors, resulting in leakage, foul odour, and occasional mechanical breakdowns.
b. The internal drainage network is not yet connected to the municipal drainage system.
Instead, it discharges untreated effluent into adjoining open land belonging to third
parties.
c. The public park/outdoor play area has not been developed or commenced as assured in
the sanctioned layout.
d. The Respondent has allegedly failed to provide an adequate water supply system through
the installation of a suitable borewell and motor, causing scarcity.
e. Contrary to the terms of the Agreement, a 20 KVA generator has been installed in place of
the promised 1 KVA power backup for each of the 91 villas.
f. The Respondent has failed to provide fencing along the community compound wall, as
stipulated in the agreement.
g. The approved layout and sanctioned plan have not been displayed within the project
premises, despite being a statutory requirement.
h. The compound wall has been constructed on vertical columns without properly closing
the gaps between the wall and ground level, resulting in ingress of rainwater, rodents, and
reptiles into the colony.
i. The Respondent failed to leave adequate space for roadside plantation within the colony
as per sanctioned layout norms.

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Despite the above deficiencies and incomplete amenities, the Respondent is collecting
monthly maintenance charges at the rate of Rs. 1.50 per sq. ft., which the Complainants
claim to be unjustified.

B. Relief(s) sought?
6.

The Complainants have prayed for the following reliefs before this Authority:
1. To direct the Respondent to provide 1 KVA power backup for each of the 91 villas as
promised.
2. To direct the Respondent to connect the internal drainage network to the municipal
drainage system.
3. To direct the Respondent to close all gaps between the compound wall and the ground
level to prevent flooding, entry of stormwater, rats, and snakes into the colony.
4. To direct the Respondent to dig a suitable borewell and install a motor pump to ensure an
adequate and sustainable water supply.
5. To direct the Respondent to erect proper fencing along the external compound wall.

C. Reply of the Respondent 1:
7.

The Respondent, while denying the allegations in toto except those specifically admitted

herein, submits that the present complaint is not maintainable either on facts or in law. It is
contended that the allegations are false, frivolous, and vexatious, filed with an intention to harass
the Respondent and derive unlawful benefit. Hence, the complaint deserves to be dismissed with
exemplary costs.
8.

The Respondent states that it is a reputed developer with over 30 years of experience in

the field of construction and real estate development in and around Hyderabad and
Secunderabad, and has successfully completed numerous projects.
9.

The point-wise reply to the allegations is as follows:
a. Underground Drainage System:
The allegations of leakage and foul odour are baseless. The sewage is being properly treated
as per Pollution Control Board (PCB) norms, and no such issues as alleged exist.
b. Connection to Municipal Drainage:

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Tree Plantation:

All tree plantations have been carried out in accordance with DTCP norms

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Collection of Maintenance Charges:

The Respondent clarifies that maintenance charges are being collected by the Association,
not by the developer. The Association is a registered society under the Telangana Societies
Registration Act, 2001 (Reg. No. 496/2021). The Respondent has no role in the collection of
such charges. The accounts are published on the official website.
It is therefore submitted that the complaint has been filed with mala fide intent, bereft of any
valid cause, and deserves to be dismissed with exemplary costs.
D. Reply filed by the Respondent 2:
10.

Upon direction of this Authority, and pursuant to the order in I.A. No.13, the AVR

Gulmohar Welfare Association was impleaded as Respondent No.2, being a necessary party for
adjudication, as the reliefs sought pertain to common facilities under the purview of the
Association.
11.

The Association, while denying the allegations, submits its point-wise reply as follows:
a. In Reply to Point No.1: Underground drainage system - The issue raised by the
complainant is ones faced by the owners but presently there is no smell or any breakdown
of motor. Upon the concern of the owners with regard to smell and water we have tested
the water which shows fine as per PCB norms.
b. In reply to Point No.2: Internal drainage connection to main drain local bodies is
objecting to the said connection. We The Respondent

Association are in regular

discussion with the respondent No.1/developer to resolve the issue and it has been
informed to us that the above issue was brought to the notice by them to the
Commissioner Miryalguda Municipality by way of representation letter dated
25.04.2024. It has also been informed to us that it is the responsibility of DTCP/local
authorities to provide drainage link. We are also following up with the local authorities as
well to the developer to resolve it at the earliest. 3) In reply to point No.3: Public Park
play area not yet commenced After due verification and after discussion with the
Respondent No.1/developer it has come to our notice that the Public park area is a
coming under buffer zone. It cannot be developed.

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The 5 points which were mentioned in the complaint seeking and praying for the relief by
the complainant are already addressed in the above paras. Therefore we humbly request
your Hon'ble Tribunal to decide the matter on merits and pass such other order or order's
as this Tribunal deems fit and proper in the circumstances of the case and in the interest
of justice.

E. Proceedings before the Authority
12.

During the course of proceedings, the Authority noted that though the Association

(Respondent No.2) had been impleaded, the Complainants filed a Memo dated 17.04.2025,
raising serious concerns about the formation and constitution of the said Association.
13.

It was brought to notice that the Association committee comprises primarily of the

promoter and its employees, and no resident members have been inducted. Furthermore, Initially
the Association was represented by the same counsel as the promoter, confirming its lack of
independence. The Respondents admitted that residents have not yet been included as members
of the Association.
14.

Considering the submissions, the Authority deemed it appropriate not to rely solely on the

Respondents’ statements and accordingly directed an independent inspection through the
Technical Engineer of the Authority, to verify the issues raised by the Complainants.
F. Inspection Findings:
15.

The inspection revealed the following observations:

a. Underground Drainage & Internal System: Sewage is routed through an inlet chamber
constructed near the clubhouse and is being pumped continuously into the septic tank,
instead of gravity flow, due to level mismatch, resulting in backflow and overflow.
Continuous pumping leads to high operational costs, and during motor breakdowns, sewage
overflows into the colony, causing foul odour and inconvenience.
b. External Connectivity: The sewage is being released into open fields instead of being
connected to the Gayatri Nagar municipal drain, which is approximately 500 meters away.
c. Recommended Mitigation: The outlet pipe must be re-laid with appropriate gradient to
ensure gravity flow and connection to the municipal drain to prevent continuous pumping

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Water Seepage in Villas: Villas No. 34 and 47 show dampness, plaster damage, and
bubbling of paint due to the absence of proper damp-proof course (DPC). The Respondent
shall engage waterproofing experts and rectify the defects immediately.

j.

Park Development: The designated park area is overgrown and lacks maintenance. No play
equipment or walkway is provided. Only one Tot Lot near the amenities block has been
developed as per approved plan.

G. Observations of the Authority:
16.

After carefully considering the submissions of the Complainants, the Respondent No.1

(M/s. Modi Realty, the Promoter), and the Respondent No.2 (AVR Gulmohar Welfare
Association), along with the material placed on record—including pleadings, documents,
photographs, and counter-affidavits filed by the parties—the Authority has also relied upon the
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The Authority notes that the Complainants, who are bona fide allottees and occupants of

villas in the project, have raised genuine concerns pertaining to incomplete or defective works in
the common areas and facilities, which directly impact their right to enjoy possession of the
property in a completed and habitable project as envisaged under the Real Estate (Regulation and
Development) Act, 2016.
18.

The Respondent No.1, as the Promoter, is statutorily obligated under Sections 11 and 14

of the RE(R&D) Act, 2016 to complete the project in accordance with the sanctioned plans,
specifications, and agreements, including the provision of all promised amenities and the
rectification of structural defects, if any.
19.

Ordinarily, this Authority does not adjudicate matters relating to common facilities or

amenities when individual allottees, acting in their personal capacity, bring complaints before it,
since such issues are typically to be addressed through the Association of Allottees as a collective
body. However, in the present case, given the status of the project and the fact that the registered
Association is not constituted of actual allottees but rather comprises representatives of the
Promoter, the Authority cannot remain a passive observer. The very essence of the RE(R&D) Act
is to protect the interests of allottees and ensure that they receive what has been contractually and
statutorily assured to them. Accordingly, the Authority deems it appropriate and necessary to
adjudicate the present matter in relation to the entire project.
20.

In this context, it is relevant to refer to Section 14(3) of the RE(R&D) Act, which

imposes an unambiguous duty on the promoter to rectify structural defects or deficiencies in
workmanship, quality, or services brought to their notice within five years from the date of
handing over possession. It 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

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21.

The inspection report corroborates several key allegations made by the Complainants,

revealing the existence of structural defects and incomplete works that fall squarely within the
ambit of Section 14(3). These defects are not merely cosmetic; they materially affect the safety,
habitability, and functionality of the project, thereby warranting immediate rectification by the
Promoter. The Authority’s findings are confined strictly to the reliefs sought by the Complainants
and do not extend to any issue beyond the pleadings and prayers. The observations below are
structured point-wise for clarity, drawing from the inspection report and submissions while
evaluating the replies of both Respondents.
a. Provision of Backup Power Supply (1 KVA per Villa for 91 Villas, Totaling 99 KVA): The
Complainants have alleged and the inspection report confirms that the existing backup power
supply is limited to a 20 KVA generator, which is grossly insufficient for the project’s total
requirement. The report notes that the upgradation to the agreed capacity of 91 KVA (1 KVA
per villa and approximately 8 KVA for common areas) remains unfulfilled. The Respondents
contend that the current installation suffices for the present occupancy of 38–40 villas, citing
a diversity factor of 40–50%. However, this reasoning cannot absolve the Promoter of its
contractual and statutory duty to provide the promised infrastructure as per agreements. A
promoter cannot condition the provision of essential services on partial occupancy; the
obligation exists for the project as a whole Accordingly, the Authority holds that Respondent
No. 1 (Promoter) is obligated to ensure the installation and operational readiness of a backup
power system of not less than the capacity as assured for the entire project, thereby meeting
the requirement of 1 KVA per villa and adequate provision for common areas. The said work
shall be completed and compliance reported within a stipulated period to the Authority.
b. Connection of Internal Drainage System to the Municipal Drainage Line: The inspection
report reveals significant deficiencies in the execution of the internal sewage and drainage
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Additionally, with regard to the formation and functioning of the AVR Gulmohar Welfare

Association (Respondent No. 2), the Authority takes note of the Complainants’ memo dated
17.04.2025, wherein it has been alleged that the said association presently comprises only the
Promoter and its employees, with no representation of the actual allottees or residents, and that it
was represented before this Authority by the Promoter’s counsel during the course of hearings.
23.

Such composition and representation are inconsistent with the spirit and intent of Section

11(4)(e) of the Real Estate (Regulation and Development) Act, 2016, which mandates the
Promoter to facilitate the formation of a genuine and independent association of allottees.
24.

Accordingly, Respondent No. 1 (Promoter) is hereby directed to take immediate steps to

enable the formation of a duly constituted and independent association of allottees villas owners,
by convening a General Body Meeting and conducting elections in a fair, transparent, and lawful
manner, ensuring participation of all eligible allottees. The association shall not consist of or be
controlled by the Promoter’s officers or employees, but shall reflect the collective representation
of the residents in accordance with applicable legal provisions.
H. Directions
25.

In light of the foregoing observations, which stand substantiated by the inspection report

and correspond with the reliefs sought, the Authority, in exercise of its powers under Sections 37
and 38 of the Real Estate (Regulation and Development) Act, 2016, hereby issues the following
directions in the interest of justice and to ensure that the project is completed in all respects as
obligated under the RE(R&D) Act:
1. Respondent No. 1 (Promoter) shall install and operationalize a backup power system of
not less than the capacity as assured for the entire project, ensuring adequate supply of 1

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Failure to comply with above said directions by the Respondent shall attract penalty in

accordance with Section 63 of the RE(R&D) Act, 2016.
27.

As a result, the complaint is disposed of accordingly. No order as to costs.

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

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

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

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