Order Complaint No.1121 Of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
16th Day of April 2024
Corum:

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

Complaint No.1160/2023/TSRERA
Sri Pradeep Kumar

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1270/2023/TSRERA
Sri S.V. Pavan Kumar Akella
Sri Maram Ravinder Reddy

…Complainant
Versus

…Respondents

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Sri Ramarao Tadikonda
Sri Maram Ravinder Reddy

…Complainant
Versus

…Respondents

Complaint No.1123/2023/TSRERA
Sri Kalluri Rakesh

…Complainant

Sri Maram Ravinder Reddy

Versus

…Respondents

Complaint No.1125/2023/TSRERA
Sri Paruchuri Vijaya Deepthi

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1126/2023/TSRERA
Sri Telukuntla Hari Prasad

…Complainant
1 of 11

Versus
Sri Maram Ravinder Reddy

…Respondents

Complaint No.1122/2023/TSRERA
Sri Addaguduru Satish Kumar

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1222/2023/TSRERA
Sri Nuka Vidya Sagar

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1783/2023/TSRERA
Sri Prashanth Kumar Besra

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1350/2023/TSRERA
Sri Sagar Sai Baba Gorla

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1361/2023/TSRERA
Sri Saikumar Kanduri

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1315/2023/TSRERA
Sri Satish Peddireddy

…Complainant

Sri Maram Ravinder Reddy

Versus

…Respondents

Complaint No.1271/2023/TSRERA
Sri S. Venkateshwara Rao

…Complainant
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Versus
Sri Maram Ravinder Reddy

…Respondents

Complaint No.1359/2023/TSRERA
Sri Chelimeda Kiran Kumar

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

Complaint No.1159/2023/TSRERA
Sri Neeraj Kumar Mishra
Sri Maram Ravinder Reddy

…Complainant
Versus

…Respondents

Complaint No.1360/2023/TSRERA
Sri Siva Mohan Reddy Guraka
Sri Maram Ravinder Reddy

…Complainant
Versus

…Respondents

Complaint No.412/2023/TSRERA
Sri Devashish Salgaonkar

…Complainant
Versus

Sri Maram Ravinder Reddy

…Respondents

The present matter filed by the Complainant herein came up for hearing on
21.11.2023, 22.11.2023, 27.12.2023, 17.01.2024 and 01.02.2024 before this
Authority in the presence of the Complainants in person, and Respondent in person,
and upon hearing the arguments, this Authority passes the following ORDER:

2.

The above-mentioned Complaints have 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)

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Rules, 2017 (hereinafter referred to as the “Rules”) requesting appropriate action
against the Respondent Builder.

Brief facts of the case:
3.

The Complainants are allottees of their respective flats in a Project namely

“Jewel Park” having 2 blocks i.e., Pearl Block and Emerald Block floated by M/s
Goldstone Infra represented through the Respondent herein. The Complainants have
filed copies of their respective registered sale deed executed between themselves and
the Respondent herein to establish their allotment in the Project. The Complainants
jointly allege that the Respondent has failed to complete the Project even though time
for completion had expired in 31.12.2019 for Pearl Block and 31.12.2021 for Emerald
Block, respectively. Accordingly, they have jointly prayed to direct the Respondent to
complete the Project and handover the respective flats to the Complainants with all
amenities at the earliest.

Reply by the Respondent:
4.

Per contra, vide Reply dated 27.12.2023, the Respondent submitted that on

account of his financial conditions he could not complete the Project. However, he
submitted that he requires 3 months’ time to complete the First Block with 65 units
and 8 (eight) months’ time to complete the Second Block with 85 units. He
additionally also prayed that the amounts due to him from the Complainants be
disbursed to him in order to complete the construction at the earliest.

Hearing conducted:
5.

Parties were called for hearing during which, the Complainants unequivocally

asserted that they have lost confidence in the Respondent and can no longer rely
upon him. They further requested this Authority to investigate keenly into the matter

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and direct the Respondent to give a detailed timeline along with amounts required
for each works and each tower for completion of the Project.

6.

As the Respondent submitted that amounts were due from the landowners,

the landowners were duly impleaded in the matters. And out of 21 (twenty-one)
landowners in Emerald Block and 3 (three) landowners in Pearl Block, only 1 (one)
landowner, Mrs. Tanveer Hafeez entered appearance and submitted, vide Affidavit
dated 01.02.2024 that she along with other 20 (twenty) landowners had entered into
a Development Agreement cum General Power of Attorney with M/s Goldstone Infra
represented by its managing partner, Mr. Maram Reddy Ravindra Reddy vide
registered Development Agreement cum General Power of Attorney bearing
Document No. 7716 of 2016 dated 11.11.2016 registered at the S.R.O. Gandipet,
Ranga Reddy District. That she owned an extent of 500 sq. yards bearing Plot No. 3
in Survey No: 246(part) in Puppalguda Village and Gram Panchyath, Rajendernagar
Mandal (now in Gandipet Mandal), Ranga Reddy District, T.S. which had been given
for development.

7.

She submitted that the said Developer has kept with her a refundable deposit

computed at Rs.1500/- per sq. yard as per clause no. 21 of the Development
Agreement aggregating to Rs.7,50,000/- (Rupees Seven Lakhs and Fifty Thousand
Only). And that the said amount would be refundable to the Developer/Respondent
at the time of handing over of my share of 45% of the built up area as mentioned in
clause no. 22 of the Development Agreement. As the flats falling in her share were
not yet completed as per terms of the Agreement, she submitted that she is not
entitled to release the refundable deposit.

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8.

In the intervening time, on 25.01.2024, the Respondent submitted a detailed

timeline enumerating the works to be done in each block along with the specific
duration and the amounts to be received by him and the cost that would be incurred
for the said works. A copy of the said detailed timeline was supplied to the
Complainants, who categorically submitted that the Respondent failed to submit the
fund utilisation in the works as well as fortnight timelines, as was directed by this
Authority. They also submitted that there is a deficit of Rs.13.37 Lakhs to complete
the Project as per the Respondent’s own calculation.

9.

They added that there is absolutely no clarity and any material on record

regarding release of funds by the landowners and the terms & conditions between
the Respondent and landowners. Further, the Respondent has been repeatedly
requesting the Authority to insist the customers/Complainants herein to release the
balance amounts from financial institutions / personal sources but failed to submit
any action plan from his end to overcome the deficit caused due to his own failure in
completing the works on time. The Respondent has been taking the shelter of
financial crisis for the past three years or so, but never tried to take any concrete
steps to overcome the same except making generic and vague statements that he is
trying for funds and that he has to receive amounts from the landowners.

10.

Further, the cost estimate provided by the Respondent for balance works

appear to be unreliable and on the lower side. Therefore, they requested this
Authority to appoint a third-party consultant to submit a comprehensive evaluation
of the Project with detailed timelines, and finances required for completion of the
Project.

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11.

Accordingly, Engineering Staff College of India (hereinafter referred to as

“ESCI”) was entrusted with the task of conducting a comprehensive evaluation of the
Project and to submit the timelines along with the approximate finances required for
completion of the Project.

ESCI Report findings:
12.

Vide Report dated 04.04.2024 received by this Authority on 10.04.2024,

ESCI, while enumerating the exact works that required to be completed or which are
completed, reported that the 89% of the works are completed in the Pearl Block and
only 11% of the works are remaining to be completed at the Respondent’s behest.
Further, 64.5% of the works are completed in the Emerald Block and only 35.5 % of
the works are remaining to be completed. It was also anticipated by ESCI that works
will be completed for Tower No.1 – A, B & C Blocks i.e., Pearl Block from April to
June 2024 and Tower No.2 – D, E, F & G Blocks i.e., Emerald Block from April to
September/October 2024.

13.

It was submitted that a total amount of Rs.2,50,00,000/- (Rupees Two Crores

and Fifty Lakhs Only) is required for completion of Tower No.1 – A, B & C Blocks i.e.,
Pearl Block having a total of 95,900 sft and whereas Rs.9,95,00,000/- (Rupees Nine
Crores Ninety Five Lakhs Only) is required for completion of Tower No. 2 – D, E, F &
G Blocks i.e., Emerald Block having a total of 1,21,550 sft.

14.

From the said Report, it was also observed that the Respondent collected

Rs.18.24 crores from all the allottees and Rs.1.04 crores is outstanding from the
allottees. An enumerated table of pending amounts from each allottee is provided
therein.

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Observations and Directions of the Authority:
15.

This Authority has carefully perused the material on record and considered

the contentions of the parties along with the detailed and comprehensive report
submitted by ESCI. Admittedly, the Respondent was liable to complete the Project
before 31.12.2019 for Pearl Block and 31.12.2021 for Emerald Block, respectively.
However, he failed to do so on account of his financial instability. In the said process,
the Respondent, has violated his obligation under Section 11(4)(b) which mandates
him to complete the Project and obtain Occupancy Certificate from the competent
authority as per timeline stipulated under the Building Permission and to make it
available to the allottees individually or to the association of allottees.

16.

Further, even though there are amounts due to be paid by the Complainants

to the Respondent, it appears that on account of severe delay in completing the
construction on part of the Respondent, the Complainants have lost faith in the
Respondent and are submitting that only upon handover of the respective flats, will
the Complainants deposit the outstanding balances to the Respondent. As the
Respondent is admitting to its fault in failing to complete the Project within the
scheduled timeline, no delay can be attributed to the Complainants for not having
paid due amounts to the Respondent.

17.

It has also come to the notice of this Authority that the Respondent has failed

to create a designated bank account in abject violation of Section 4(2)(l)(D) of the Act,
2016. Further, the Respondent, has failed to extend its registration of the Project
(Emerald Block - P02400002037 & Pearl Block - P02100000644) as per Section 6 of
the Act, 2016 despite non-completion of the construction. The Respondent also
violated Section 11 read with Rule 14(1)(c) and failed to submit quarterly reports of
list of number and types of apartments offered for sale, list of number of parking

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slots offered for sale, status of construction of each building with photographs, status
of construction of each floor with photographs, status of construction of internal
infrastructure and common areas with photographs amongst others.

18.

On 08.04.2024, the Complainants and the Respondent filed a Joint Memo and

agreed as under:
“In compliance to the directions passed by this Hon'ble Authority and as decided
during the Joint Meeting of Parties with the Technical Team of Engineering Staff
College of India (ESCI) held on 30th March 2024, the Parties agree that the
Respondent shall complete Tower - I (Pearl - A, B & C blocks) of the project i.e.
Goldstone Jewel Park in all respect including internal works, common works,
lifts, sanitary, power supply, finishing works and other amenities and handover
to the Complainants / Flat owners by 31st May 2024 and Tower - II (Emerald D, E, F & G blocks) in all respect including internal works, common works, lifts,
sanitary, power supply, finishing works and other amenities and handover to
the Complainants / Flat Owners by 30th September 2024.

In case the Respondent fails to complete the said Tower - I & Tower - II and
handover within the above-mentioned timelines, the Respondent shall pay
penalty as stipulated under the Telangana Real Estate Act (Regulation and
Development) Rules, 2017.”

19.

That in line of the above-mentioned observations, this Authority issues the

following directions:
a) As per the Joint Memo dated 08.04.2024, the Respondent is directed to
complete the construction and handover the respective flats to the
Complainants in all respect including internal works, common works, lifts,

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sanitary, power supply, finishing works and other amenities and handover to
the Complainants by 31st May 2024 and Tower - II (Emerald - D, E, F & G
blocks) in all respect including internal works, common works, lifts, sanitary,
power supply, finishing works and other amenities and handover to the
Complainants by 30th September 2024; failing which appropriate action
under Section 63 shall be initiated against the Respondent; and
b) The Respondent is directed to submit a fortnightly report of the progress of
the construction to this Authority in order to ensure that timelines are being
strictly complied with; and
c) For violation of Section 4(2)(l)(D) and Section 11 read with Rule 14(1)(c), this
Authority deems it fit to impose penalty, while exercising its powers under
Section 38 read with Section 61 of the Act, 2016, of Rs.6,41,505/- (Rupees
Six Lakhs Forty-One Thousand Five Hundred and Five Only) with respect to
the “Emerald Block” and Rs.3,62,900/- (Rupees Three Lakhs Sixty-Two
Thousand and Nine Hundred Only) with respect to the “Pearl Block”,
cumulatively, Rs.10,04,405/- (Rupees Ten Lakhs Four Thousand Four
Hundred and Five Only) on the Respondent payable in favour of TS RERA
FUNDS

through

Demand

Draft

or

online

payment

to

A/c

No.50100595798191, HDFC Bank, IFSC Code: HDFC0007036 within 60
days; and
d) The Complainants are directed to deposit the balance dues amounting to
Rs.1.04 crores within 30 days of handover of their respective flat to
Complainants.

20.

In light of the above-mentioned directions, the matter is disposed of. The

parties are hereby informed that non-compliance of the Order shall attract penalty
under Section 63 of the Act, 2016.

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21.

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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