In a recent ruling, the Telangana Real Estate Regulatory Authority (RERA) imposed a penalty of ₹4,50,645 on SK Constructions & Developers for failing to deliver promised amenities to flat owners. The case arose when a homeowner filed a complaint against the builder, B.R. Mohan Reddy, Managing Director of SK Constructions & Developers, alleging that essential facilities such as a play area, gym, and multi-purpose hall were not provided, despite an additional charge of ₹3 lakh for these amenities.
Key Issues Highlighted
The complaint underscored the builder’s omission in providing:
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A play area
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A gym
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A multi-purpose hall
Additionally, there was a contention regarding the provision of a Manjeera water connection. The builders clarified that they had only committed to making necessary provisions for such connections and denied collecting extra amounts for obtaining the water supply.
RERA’s Directives
After evaluating the arguments from both parties, RERA issued the following orders:
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SK Constructions & Developers must rectify the issues and defects in the constructed flats.
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The builders are required to provide Manjeera water connections to all apartments in the project.
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The builders were cautioned against advertising any amenities or facilities that do not comply with the approved sanction plan.
Legal Precedents
This incident brings to light the broader issue of builders failing to fulfill their commitments. The Supreme Court has observed that flat-owners, who are often compelled by circumstances to take possession of apartments even if the promised amenities are not provided, do not forfeit their right to claim such services from the builder. The Court emphasized that it is the builder’s obligation to obtain necessary completion certificates and provide the agreed-upon amenities, regardless of whether possession has been taken.
Implications for Homebuyers and Builders
This ruling serves as a significant reminder to both homebuyers and builders:
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Homebuyers: Possessing a property without all promised amenities does not nullify the right to demand their provision. Legal avenues are available to address such grievances.
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Builders: There is a mandatory obligation to fulfill all commitments made during the sale process. Non-compliance can result in legal penalties and damage to reputation.
In conclusion, the enforcement of such penalties by regulatory authorities underscores the importance of accountability in the real estate sector. Both builders and buyers must be vigilant in ensuring that contractual obligations are met, fostering a more transparent and trustworthy real estate environment.
