Penalty order on M/s. Sree Vemuri Constructions

GOVERNMENT OF TELANGANA
TELANGANA STATE REAL ESTATE REGULATORY
AUTHORITY
FRIDAY, THE 8 TH DAY OF NOVEMBER TWO THOUSAND TWENTY FOUR
ORDER UNDER SECTION 59 OF THE REAL ESTATE (REGULATION AND
DEVELOPMENT) ACT, 2016
COMPLAINT No. 1769/2024

Between:
K. Hema, W/o G. Santosh Reddy
.....Complainant
And
M/s Sree Vemuri Constructions through Sri Vemuri Chandrasekhar, H.
No.1-7-67, First Floor, Vemuri Castle Apartment Chaitanyapuri, Hyderabad.
.........Respondent

Quorum: Dr. N. Satyanarayana, IAS (Rtd) Hon’ble Chairperson
Sri. Laxminarayana Jannu, Hon’ble Member
Sri. K. Srinivasa Rao, Hon’ble Member
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It is to inform you that this Authority has received a representation on
behalf of Smt. K. Hema, W/o G. Santosh Reddy wherein, it was submitted
that,
1.1 She is the owner and possessor of Flat bearing No.S-7, 2nd Floor,
Annapurna Sadan Apartments with plinth area of 920 sft., along with
undivided share of 54 square yards out of 1100 square yards forming part of
Plot Nos.66, 67 and 68 in Sy.No.181/5 of Chaitanyapuri Colony, Kothapet.
That the above flat was purchased by her vide sale deed bearing document
No.14124 of 2003, dated 21.11.2003. After purchase of the said flat, she
was living in the said flat along with her family. The said construction was
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That in the year 2021 the flat owners of the apartment and

neighbouring

apartments

were

approached

by

M/s.

Sree

Vemuri

Constructions and offered for dismantling the existing structure and build a
new residential apartment and made certain promises. That thereafter
Development Agreement cum General Power of Attorney was executed by all
the Flat owners of the said apartment in favor of M/s. Sree Vemuri
Constructions vide registered document dated 15.05.2022.
1.3

That the said DAGPA was executed with an understanding that M/s.

Sree Vemuri Constructions would dismantle the existing building and make
construction of residential building in total area of 1092. Sq, yards in Sy.
No. 181/5. The said building is to be constructed in 2 blocks i.e., Block A
consisting of 10 flats and Block B consisting of 15 flats. That in the said
DAGPA the shares of the parties were also detailed. That I was allotted flat
No. 302, 3rd floor, admeasuring to the extent of 1125 SFT in Block-B.
Similarly, the builder M/s. Sree Vemuri Constructions was allotted with 7
flats in Block A each admeasuring 1520 SFT. That, as per the said DAGPA
the Block A is proposed to be constructed in land admeasuring to 519.32
Sq. yards and Block B is proposed to be constructed in 572.5 Sq. yards.
That under the DAGPA the Developer is also liable to pay Rs. 6000/- per
month to the flat owners towards monthly rents from the date of municipal
Permission. The DAGPA also casts obligation on the developer to obtain all
required permissions applicable to the said construction in terms of existing
laws.
1.4

That, the developer based on DAGPA has obtained two separate

municipal permissions vide Permit No. 2670/GHMC/LBN/2022 - BP with
respect to Block-A for construction of stilt + upper 5 floors, another Permit
No. 2669/GHMC/LBN/2022 - BP with respect to Block-B for construction of
1 stilt + 5 upper floors. That prior to entering into DAGPA, the developer
executed a Memorandum of Understanding, dated 16.03.2022 in her favour
to allot 1520 Flat admeasuring 1550 SFT instead of 1125 SFT for differential
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That, after the execution of DAGPA and after obtaining the

permissions, the developer giving a goby to all terms and conditions in
DAGPA and flouting the provisions of law, is now started executing multiple
documents in favour of third parties by receiving huge sums of money.
1.6

That, upon further enquiry, it has come to her knowledge that the

developer has similarly entered DAGPA documents with neighbouring
apartment owners and making constructions in various blocks. Though the
said constructions would fall within the purview of RERA no registration,
permission

or

clearances

were

obtained,

despite

the

construction

undertaken is more than 10 units and also area wise the relevant clearance
from RERA is mandatory. The developer is alienating the Flats to 3rd parties
contrary to terms of understanding. This action of developer is in clear
contravention of provisions of RERA and action is required to be initiated for
such illegality.
1.7

That, under the provisions of Real Estate (Regulation & Development)

Act, 2016 more specifically under section 3 requires prior registration of
project and the Promoter is restrained from advertising, marketing, booking,
selling or offer to sale, in any manner any plot, apartment or building,
without registering the real estate project with the Real Estate Regulatory
Authority established under the Act. Despite the project falling within the
purview of provisions no registration was done and is being sold through
multiple documents. That the said action would call for action against the
developer in terms of provisions of Section 59 of the Act, and also the
alienation that is being made contrary to provisions is required to be
restrained. Therefore, the she prayed to take appropriate action against the
developer for the violations under provisions of Real Estate (Regulation &
Development) Act, 2016and in the meantime to restrain the developer form
creating multiplicity of documentation of alienation of flats in the said
construction

made

pursuant

to

Municipal

Permit

No.
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in

Block-A

and

Permit

No.

2669/GHMC/LBN/2022-BP inBlock-Bin Plot No. 66, 67 & 68 in Sy. No.
181/5 of Chaitanyapuri Colony, Kothapet as the same is without
registration under provisions of Real Estate (Regulation & Development) Act,
2016 (hereinafter referred to as “Act, 2016”), in the interest of Justice.
1.8

She also annexed a copy of the Development agreement dated

15.05.2022, Municipal Permit No. 2670/GHMC/LBN/2022-BP and Permit
No. 2669/GHMC/LBN/2022-BP and MOU dated 16.03.2022in support of
her contentions.
2. This Authority has perused the Representation filed by Smt. K. Hema
along with the documents filed in support of her contentions. It is apparent
that vide Permit No.2670/GHMC/LBN/2022-BP dated 05.08.2022, M/s
Sree Vemuri Constructions represented by Sri V. Chandra Sekhar applied
for permission of development of a plot having a total area of 434.15 sq.mtrs
having 1 stilt + 5 (five) floors having 2 flats each i.e., a total of 10 (ten) flats.
2.1

In the other permit bearing No.2669/GHMC/LBN/2022-BP dated

05.08.2022, permission is for the development of plot having a total area of
478.61 sq. mtrs having 1 stilt + 5 (five) floors having 3 flats each i.e., a total
of 15 (fifteen) flats. Therefore, in Block A and Block B, there are a total of 25
flats.
2.2

Section

3(2)

clearly

stipulates

that

“notwithstanding

anything

contained in sub-section (1), no registration of the real estate project shall be
required— (a) where the area of land proposed to be developed does not
exceed five hundred square meters or the number of apartments proposed to
be developed does not exceed eight inclusive of all phases.” As clearly seen
from the approved plan, as the number of apartments of exceeding 8 i.e., 10
in Block A and 15 in Block B, the project falls within the ambit of this
Authority and the promoter, M/s Sree Vemuri Constructions is liable to
comply with the provisions of Sections 3 and 4 of the Act, 2016.

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Further, this Authority has perused the DAGPA, more specifically

Clause 13 which states as under:
“13.The Second Party and the Parties of the First Party shall be
entitled to sell, transfer and allotted built-up area/flats of
Residential

building

complex

with

proportionate

common

amenities along with undivided share and other areas in the
proposed project to be developed on the scheduled property to the
extent of this respective shares of the constructed area on
ownership or any other basis to such parties for such
consideration as they may deem fit and proper and shall be
entitled to enter into agreements of such sale or transfer with
persons intending to purchase and /or acquire the said
Residential building complex as such price and upon such terms
and conditions as decided by the them independently.”
This clearly concludes that the Promoter, M/s Sree Vemuri Constructions as
well as other owners of the respective flats are free to offer for sale their
respective flats sans RERA registration in abject violation of Sections 3 & 4.

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Accordingly, a Show Cause Notice dated 13.09.2024 was issued to the

promoter, M/s Sree Vemuri Constructions to show cause as to why penalty
should not be imposed under Sections 59 and 60 of the Act, 2016 for
violation of Sections 3 and 4 as mentioned above.
3.1

As the Notice was returned, the same was reissued to the promoter,

M/s Sree Vemuri Constructions and was duly served upon him on
26.10.2024. An acknowledgment to this effect was received by the office of
this Authority. The Show Cause Notice clearly directed to explain to this
Authority within one week from the date of receipt of the said show cause
notice as to why action should not be initiated against you for violation of
Sections 3 & 4 of the Act, 2016failing which necessary action shall be
initiated.
4.

Despite service of notice there has been no response on behalf of the

promoter, M/s Sree Vemuri Construction seven till today Sufficient
opportunity and reasonable time were afforded to the promoter to furnish an
explanation in response to the Show Cause Notice, specifically addressing
why the imposition of a penalty should be avoided. However, the promoter's
deliberate failure to submit such an explanation constitutes an implied
acceptance of the allegations and charges contained therein. This Authority,
therefore, derives the power to initiate and execute appropriate punitive
measures in accordance with the law.
4.1 The wording of the Show Cause Notice makes it unequivocally clear that
failure to provide an explanation within the stipulated time frame would
empower this Authority to proceed with subsequent actions, including the
imposition of penalties, as deemed fit and just under the provisions of the
Act, 2016.
5.

Therefore, vide its powers under Sections 36, 37 and 38 read with

Sections 3, 4, 59 and 60, this Authority issues the following Penalty Order to
the Promoter, M/s Sree Vemuri Constructions:
i.

A penalty of Rs.3,34,828/- (Rupees

Three Lakhs Thirty Four

Thousand Eight Hundred and Twenty Eight Only) is hereby imposed
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The Promoter, M/s Sree Vemuri Constructions is directed to take
appropriate steps to file an application for registration under Section 4
of the Act, 2016 within a period of 15 (fifteen) days; and

iii.

Till such time as this Authority does not grant registration certificate
to the Project, the Promoter, M/s Sree Vemuri Constructions is
restrained to advertise, market, book, sell or offer for sale, or invite
persons to purchase in any manner any units arising out of GHMC
permit bearing Nos. Municipal Permit No. 2670/GHMC/LBN/2022-BP
and Permit No. 2669/GHMC/LBN/2022-BP dated 05.08.2022; and

iv.

Failure of the Promoter, M/s Sree Vemuri Constructions to comply
with the above-mentioned directions shall be liable for penalty in
accordance with Section 63 of the Act, 2016.
Dated this 8th day of November, 2024.

Sd/Sri.Laxminarayana Jannu
Hon’ble Member
TG RERA

Sd/K.Srinivasa Rao
Hon’ble Member
TG RERA

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

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