Telangana Real Estate Regulatory Authority (TG-RERA). (Image: DC)
Hyderabad: The Telangana Real Estate Regulatory Authority (TG-RERA) transferred the responsibility of completing the Jayathri Infrastructures’ ‘Jaya Platinum Project’ to the JP Welfare Association, after the company duped people with their pre-launch offers.
The project, initiated in 2021, has faced long delays, halting construction since January 2023. As of December 2023, only 66 per cent of the construction was complete, with the remaining 34 per cent requiring an estimated Rs 27.5 crore and 12 months for completion under uninterrupted cash flows. The developer failed to deliver the project as promised by July 2022 citing vague reasons and financial mismanagement.
The misuse of funds was revealed through an engineering inspection report by ESCI, with Rs 211.69 crores spent as of April 2022 without clear progress. After a series of hearings Rera imposed a fine of Rs 50 lakhs on the builder for cheating the people in the name of pre-launch offers.
Homebuyers were disappointed by the delays and financial mismanagement. They reported that the developer collected too much money upfront without proper agreements and ignored legal requirements like updating buyers on the project’s progress.
Since the developer could not provide a plan to finish the project, TG-RERA revoked the developer’s registration and handed control to the JP Welfare Association, a group representing the flat owners.
The government approved TG-RERA's recommendation under Section 8 of the RERA Act, 2016. This decision comes after the developer repeatedly missed deadlines and failed to secure funds, not just for this project but for seven others.
The association has hired Nagadurga Enterprises as the contractor and the project is expected to be completed in 6-7 months. TG-RERA will monitor progress to ensure transparency. After completion, flat owners must show the proof of purchase to claim their homes and unidentified owners must pay their share to move in.
The Platinum Project was launched five years ago by Kakarla Srinivas, the owner of Jayathri Infrastructures in Dundigal. The project, approved by HMDA, aimed to build a stilt+5 floor apartment complex with 60 flats on a 3,267 square yard plot. Without registering with RERA, Jayathri Infrastructures collected crores of rupees from customers under a pre-launch offer.
To gain the trust of the buyers, the company quickly constructed up to the slab levels. Apart from nine flats mortgaged to HMDA, the remaining 51 flats were sold. However, due to mismanagement of funds, the project halted midway. Buyers filed complaints with Rera in September last year.
Similar to the Jayathri case, several other stalled projects are also being considered for transfer to third-party builders, breathing new life into halted construction projects. “TG-RERA is preparing to take action under Section 8 on several incomplete projects. One of them includes Sahiti Infratech Ventures,” said K. Srinivas Rao, a TG-RERA member.
By utilising RERA’s authority, we will ensure incomplete projects are completed, and provide relief to buyers, he added.
The misuse of funds was revealed through an engineering inspection report by ESCI, with Rs 211.69 crores spent as of April 2022 without clear progress. After a series of hearings Rera imposed a fine of Rs 50 lakhs on the builder for cheating the people in the name of pre-launch offers.
Homebuyers were disappointed by the delays and financial mismanagement. They reported that the developer collected too much money upfront without proper agreements and ignored legal requirements like updating buyers on the project’s progress.
Since the developer could not provide a plan to finish the project, TG-RERA revoked the developer’s registration and handed control to the JP Welfare Association, a group representing the flat owners.
The government approved TG-RERA's recommendation under Section 8 of the RERA Act, 2016. This decision comes after the developer repeatedly missed deadlines and failed to secure funds, not just for this project but for seven others.
The association has hired Nagadurga Enterprises as the contractor and the project is expected to be completed in 6-7 months. TG-RERA will monitor progress to ensure transparency. After completion, flat owners must show the proof of purchase to claim their homes and unidentified owners must pay their share to move in.
The Platinum Project was launched five years ago by Kakarla Srinivas, the owner of Jayathri Infrastructures in Dundigal. The project, approved by HMDA, aimed to build a stilt+5 floor apartment complex with 60 flats on a 3,267 square yard plot. Without registering with RERA, Jayathri Infrastructures collected crores of rupees from customers under a pre-launch offer.
To gain the trust of the buyers, the company quickly constructed up to the slab levels. Apart from nine flats mortgaged to HMDA, the remaining 51 flats were sold. However, due to mismanagement of funds, the project halted midway. Buyers filed complaints with Rera in September last year.
Similar to the Jayathri case, several other stalled projects are also being considered for transfer to third-party builders, breathing new life into halted construction projects. “TG-RERA is preparing to take action under Section 8 on several incomplete projects. One of them includes Sahiti Infratech Ventures,” said K. Srinivas Rao, a TG-RERA member.
By utilising RERA’s authority, we will ensure incomplete projects are completed, and provide relief to buyers, he added.
( Source : Deccan Chronicle )
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