Hyderabad:The Real Estate Regulatory Authority (RERA) in Telangana has received some complaints from residents of housing projects over the misuse of amenity spaces by developers.
According to GO Ms. No. 168, builders must allocate three per cent or 50,000 square feet (whichever is lesser) of the total built-up area for amenities in residential projects with over 100 units.
Section 2(n) of the Telangana Real Estate (Regulation & Development) Act, defines "common areas" as spaces that everyone in a housing project shares.
This includes facilities like land, staircases, lobbies, lifts, parking, recreational facilities and utility services.
It also covers commercial and amenity spaces that are meant to benefit all residents, and see that these areas are managed for everyone's use and not for the developer's personal profit.
However, in some cases developers have exceeded the allotted space and either leased or sold it for a third party for commercial purposes,
violating community interests.
Furthermore, Clause 17 of the Telangana Real Estate (Regulation & Development) Rules, 2017 prohibits any structural additions or changes after the project approval. Builders are legally required to hand over the amenities block to the residents association within three months of receiving the occupancy certificate, as per Section 17 of the Telangana Real Estate (Regulation & Development) Act, 2016. Despite these clear guidelines, some developers are taking control of the amenity spaces by either selling or renting them to third parties.
In some cases, developers have constructed amenity blocks at the main entrance of the community allowing public access without any restrictions. While there are no rules preventing where these facilities can be built, it is mandatory to maintain controlled access to ensure that the amenities benefit only the residents. However, builders are failing to implement proper boundaries or access controls, leading to unauthorised use by outsiders.
When outsiders gain access or developers lease these spaces to third parties, residents lose control over facilities meant for their exclusive
use. Additionally, when these spaces are sold to external buyers, they often operate under separate terms and conditions.
The Real Estate (Regulation & Development) Act, 2016 places a clear responsibility on developers. Section 11(4)(a) mandates that developers
remain responsible for all obligations until the common areas are conveyed to the residents association. Additionally, Section 11(4)(f) requires
developers to execute a registered conveyance deed transferring ownership of common areas to the association. Despite these obligations, many developers delay or avoid this process, leading to disputes and legal challenges.
Once the two-thirds of the occupants form an association, they are entitled to manage the amenities and other community facilities. However, many developers are resisting this handover, forcing residents to approach RERA for intervention. Residents are approaching RERA to take action against violators and ensure that amenity spaces are handed over to the rightful owners, those who live within the community.
"Homeowners have the right to use the amenities they paid for and developers must hand them over as promised. Using these spaces for business purposes is against the law and harms the community. RERA will take appropriate action to protect residents rights and ensure builders follow the rules," said Srinivas Rao, a member of TG RERA.
