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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Key highlights of the report are given below:

• India’s real estate sector remains optimistic, driven by stable residential demand and a growing office market. Project completions have slightly slowed, yet the reduction in vacancy rates highlights a positive trend for the industry.
• The retail sector saw a 7% year-on-year growth in space absorption in early 2024, with luxury retail expanding in Tier-II and Tier-III cities. Direct-to-consumer (D2C) brands are increasingly establishing physical stores, reshaping the retail landscape.
• Higher-priced residential units (₹10 million and above) have driven sales growth, while the mid-size and affordable segments experienced moderation. Major cities like Mumbai and Bengaluru lead in sales volume.
• India’s office market grew strongly in 2024, led by Bengaluru’s 8.4 million sq. ft. in H1 and GCC driving 37 percent of Q3 demand. Flex spaces also expanded, with co-working leading the segment.
• The retail market saw a 7 percent YoY increase in space absorption in H1 2024, with luxury retail expanding significantly.
• Private equity investments grew by 15% YoY, reaching US$3 billion in H1 2024, with foreign investors contributing significantly. FDI in real estate also rose, with over 70% of investments focused on ready assets
• Rising interest rates, geopolitical uncertainties, and inflationary pressures present risks, along with potential regulatory changes and environmental mandates that may impact construction timelines and costs.
• Emphasizing sustainable practices, the real estate sector aims to adopt energy-efficient building methods and renewable energy integration to meet India’s net-zero goals by 2070. Regulatory support will facilitate alignment with these global goals.
• The Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) continues to support affordable housing, with increased funding for credit risk guarantees to boost first-home construction

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Developers of these projects failed to meet Quarter-End (QE) compliances by not updating the project completion status with GujRERA within the specified deadline or seeking an extension.

This action will affect numerous developers in Ahmedabad, Vadodara, Surat, and Rajkot, as it prohibits them from advertising or selling the remaining units of these projects. Moreover, the developers cannot seek credit for these projects.

“A developer is required to adhere to project-completion compliance norms laid out by GujRERA. This means the details of project completion must be updated with GujRERA by the date mentioned at the time of registration.

In case the developer fails to complete the project by the specified date, an extension needs to be sought from GujRERA. The authority learned that developers have not completed compliance for at least 1,000 projects, or even applied for extensions,” said a top GujRERA official, requesting anonymity.

“We have canceled the registration of all such projects,” added the official. Most of these projects were launched in 2018-19 and had promised a project completion date in the first half of 2024, according to the official.

GujRERA has also provided details of each of these projects to the State Level Bankers’ Committee (SLBC) – Gujarat, urging them to freeze RERA-registered bank accounts of all these projects.

“This means developers of these projects cannot sell the remaining units because they cannot receive money in the registered bank account. Additionally, as RERA registration is canceled, they cannot advertise the project,” the official stated.

Interestingly, these 1,000+ projects also include those that are already completed, and buyers have been granted possession. “However, in many such cases, the Building Use (BU) permission is pending, and therefore, developers are not able to complete the QE compliance.

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