Located in Mallampet Village, Medchal-Malkajgiri district, the project was initially scheduled for completion by July 1, 2023, with a grace period extending to December 2023.

However, with significant delays, RERA has directed the developer to finish all pending work within 90 days from November 14, 2024.

The action follows a complaint filed by flat buyers Allam Nagaraju, S. Arun Kumar, and others, who alleged multiple violations, including delays in project delivery and deviations from the approved construction plan.

According to the complainants, Sterling Homes did not adhere to the sanctioned plan, particularly in constructing the clubhouse and ensuring a compound wall to separate the project from its adjacent Phase II development.

They also accused the developer of misleading buyers by sharing amenities between Phase I and II without prior disclosure. Further, they alleged that Sterling Homes relocated the Sewage Treatment Plant (STP) in violation of the approved plan and began work on Phase II before completing Phase I, thereby compromising the rights of Phase I buyers.

In response, Sterling Homes defended itself in its submission to Telangana RERA (TGRERA), citing external factors such as regulatory hurdles, heavy rainfall, labour shortages, and disruptions caused by the pandemic as reasons for the delays.

The developer maintained that the deviations from the approved plan were minor adjustments made to ensure structural integrity and had been approved by the relevant authorities.

Sterling Homes denied allegations of malafide intent, asserting that Phase II construction was initiated only after securing the necessary approvals and that buyers had been informed about the shared amenities.

It further claimed that financial constraints, exacerbated by the complainants’ alleged non-payment of dues, contributed to the delays in completing Phase I.

In its ruling, RERA ordered the developer to complete all remaining work in the Sterling Orchids Phase I project, including promised amenities, strictly in line with the sanctioned plan, within 90 days.

Additionally, RERA mandated Sterling Homes to pay interest at a rate of 10.95% per annum to the complainants for the amounts already paid, as outlined in the Agreement of Sale.

At the same time, the complainants were directed to clear any pending sale consideration amounts within 45 days to facilitate the project’s progress. Both parties have been instructed to fulfill their respective obligations to ensure the project’s timely completion and prevent further disputes.

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However, despite issuing these warrants, police have yet to act, prompting H-RERA to approach the Punjab and Haryana High Court for intervention. The regulator has also initiated contempt of court proceedings against the police in three cases due to their inaction.

Rajender Kumar, H-RERA’s adjudicating officer, stated that the arrest warrants were issued between February and September after developers repeatedly ignored directives.

“The lack of police enforcement has only aggravated the distress of homebuyers,” said Kumar. “We have referred the matter to the High Court, yet the police have not taken action. Thousands of homebuyers continue to suffer as a result.”

When questioned about the situation, DCP Headquarters Arpit Jain told TOI, “As of now, we have not received any such notice from the court. If we receive an order, we will act as per the directions of the honorable court.”

Ritika Singh, a homebuyer who has been waiting for her flat for over five years, expressed her frustration with the redressal system. Despite the government’s appointment of a regulator, she feels it is failing homebuyers.

“I invested all my savings in this flat, but the builder has delayed possession multiple times. H-RERA ordered compensation, but I haven’t received a single rupee,” she lamented.

Similarly, Ajay Mehra, another homebuyer, shared that he was supposed to move into his apartment in 2018. “It’s 2024, and I’m still waiting. I’ve lost trust in the process. We’ve done everything we could, but the developers keep evading accountability,” he said.

Ankit Sharma, another buyer impacted by the delays, voiced his disappointment: “We expect the law to protect us, but when even a government authority takes action and it’s still not enough, what’s the point?”

H-RERA officials hope that moving the matter to the High Court will create a renewed sense of urgency, pushing developers to comply.

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Of these, approximately 130 cases have been directed to the adjudicating officer at the Lucknow office, while about 120 cases have been assigned to the Gautam Budh Nagar office.

This action follows a review conducted by Sanjay Bhoosreddy, Chairman of UP-RERA, who assessed the compliance status of orders issued in response to complaints from property allottees.

The review revealed that many promoters were deliberately delaying the delivery of possession to allottees, even though there were explicit orders for them to do so within a specified period.

In response to these delays, UP-RERA has empowered the adjudicating officers to ensure that registered sale deeds and the delivery of possession are carried out following the provisions of Rule 24 of the UP-RERA Rules, 2018.

Under this rule, adjudicating officers hold the authority of the Code of Civil Procedure (C.P.C.), which they will utilize to accelerate the transfer of possession and the execution of sale deeds. Furthermore, these officers can attach properties and appoint receivers to enforce compliance with the orders.

To increase the pace of action, Chairman Bhoosreddy has now established a system whereby any case in which a promoter fails to provide possession as ordered by RERA will be automatically referred to the court of the adjudicating officers by the secretary, with the chairman’s approval. This process aims to ensure that all such cases are promptly addressed without unnecessary delays.

Bhoosreddy strongly disapproved of promoters who fail to deliver possession to allottees despite clear orders from RERA. He emphasized his commitment to regularly monitoring the status of these cases and implementing all necessary measures to protect the interests of the allottees.

He further stated that UP-RERA would take stringent actions against non-compliant promoters to uphold the authority’s decisions.

The adjudicating officers are now responsible for conducting effective and timely proceedings to ensure that sale deeds are executed and possession is delivered without further delay. These officers will play a critical role in upholding the allottees’ rights by ensuring promoters adhere to their commitments.

Moreover, UP-RERA has resolved that in every case referred to the adjudicating officers for ensuring possession delivery, it will impose substantial penalties on defaulting promoters.

UP-RERA will also work in coordination with the district magistrate to ensure the recovery of penalty amounts from the promoters who fail to comply with the orders. This measure aims to deter any future delays and reinforce the importance of adhering to RERA’s directives.

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This comes in response to a common issue where real estate firms declare insolvency while their promoters continue to thrive financially.

Some promoters exploit this situation by declaring bankruptcy and starting new companies under different names, often to avoid compensating home buyers for delays, substandard quality, or unmet commitments.

Typically, home buyers file complaints with local police or court petitions, often only naming the real estate company. They frequently overlook the requirement to include the promoters and directors of the company in their complaints.

The High Court has recently directed petitioners to return to the Karnataka Real Estate Regulatory Authority (RERA) for a fresh review of their cases.

This order arose from a petition filed by Vasudevan Sathyamoorthy and Priya Vasudevan, involving multiple respondents including the state government, Deputy Commissioner of Bengaluru Urban, the Secretary of Karnataka RERA, and others.

The court noted that without including the petitioners in the RERA proceedings, it was improper for the Tahsildar to take action against them. The Judge concluded that the notices issued against the petitioners should be quashed, and the parties must be redirected to RERA for a thorough reevaluation of their grievances.

The High Court’s order instructs RERA to add the petitioners and the company directors as parties to the proceedings.

Dhananjaya Padmanabhachar, Coordinator of the Karnataka Home Buyers Forum, hailed the ruling as a crucial step for home buyers.

He advised that anyone involved in litigation with RERA or consumer courts should include the builder company’s name, as well as the names of the founders, executive directors, and landowners as respondents to seek justice.

Retired Naval Commander Surendra also stressed the importance of including promoters’ names in complaints. He called for RERA to amend its rules to ensure landowners are included in the complaint process.

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In order to address the complaints of homeowners, the regulator has reviewed the matter and is currently preparing to take legal action against the developers who have disregarded the August 2023 mandate.

These cells must have at least one complaint redressal officer assigned to them in accordance with the regulator’s mandate. Adherence to this clause will be a crucial factor in the suggested assessment of projects by the regulatory body.

“Business expansion in the service sector requires the development of trust. The construction industry has only been acknowledged thus far as a product sector. It is now beginning to expand as a service industry. It is imperative to have a grievance redressal procedure in place in such a situation. The chairman of MahaRERA, Ajoy Mehta, stated, “MaharERA has instructed the establishment of a grievance redressal cell in every project and has asked the stakeholders to take prompt action to further the sector’s credibility.”

When buying or registering a property, the buyer typically communicates with the project’s sales and marketing staff. On the other hand, these buyers are ignorant of any project-specific channels for resolving concerns should they come up later.

This makes it difficult for the homebuyer to get their problems addressed quickly, which causes miscommunications and complaints long after the project is finished. The project’s timeline may be impacted by this lack of communication.

The regulator had emphasized that these problems might be managed if every developer established a specific grievance redressal cell for their own projects. This would ensure that the complainant received timely, official, and trustworthy information.

Both the developer’s website and the project site should have a prominent display of the redressal cell’s details, including the officers’ names and coordinates.

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The action is intended to guarantee that standards are defined for procedures, materials, and to reduce the likelihood of errors and difficulties for purchasers.

It is suggested that compliance with the new rules will be voluntary in the beginning. Developers who voluntarily accept the method will have their names listed on the MahaRERA website, which will help to enhance their reputation with prospective purchasers. Following suit will become necessary for all developers after the transition phase ends.

Defect liability is covered by the Real Estate (Regulation and Development) Act, 2016. The law protects the interests of flat buyers by holding developers responsible for fixing any structural flaws that are discovered within the first five years of occupancy. Within 30 days, the developer is expected to fix these bugs at their own cost.

A draft regulation for the project’s quality assurance has been floated by the regulator. The developer will be required to submit a self-certification declaration for the project that includes comprehensive details on its technical features. Up to May 23, comments on the same are welcome.

MahaRERA published a discussion paper in December outlining steps to improve the quality of homes and anticipate complaints from buyers over construction flaws or inadequate construction quality.

Such a rule was required due to ongoing discussions and worries about the quality of construction provided by the real estate industry. MahaRERA has already conferred with several real estate players in order to compile the draft, therefore it is anticipated that this action will allay worries regarding the caliber of construction in the real estate industry.

MahaRERA states that although the law offers corrective options for fixing problems, it is crucial to protect the interests of homebuyers, necessitating the establishment of procedures and guidelines to reduce the likelihood of defects.

According to the self-declaration, there are a few crucial issues that must be resolved right away. Some of these are to soil testing prior to the design process, hiring structural engineers, periodic certification for quality control, etc. in terms of structural design and stability.

It will also include elements like a facility for on-site testing to check the quality of raw materials and routine site inspections to guarantee the quality of building supplies like steel, concrete, cement, electrical cables, plumbing fixtures, etc.

In addition, the project manager and engineers must document and certify information about earthquake-resistant construction, fire safety, and other related topics after the project is finished. Before submitting the “Self-Declaration on Quality Assurance” to MahaRERA, the project promoter will also need to revalidate these.

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