Telangana RERA penalises builder for not registering project, building more parking slots than allocated units

“For violation of Sections 3 and 4, ie, for non-registration of the project Showri Pearl apartment, the developer is liable for a penalty under Sections 59 and 60 respectively; therefore, they are directed to pay a penalty of Rs. 2,85,992,” the order said.

“The developer is further directed to restrict the number of demarcated car parking slots to fifteen (15), in alignment with the number of sanctioned residential units, and the Apartment Owners Association is advised to ensure equitable allocation and amicable resolution of parking arrangements among allottees,” TGRERA said.

According to the complaint, the developers, including Aduri Prathap Reddy and Bommidi Srinivas Rao, were found to have created 20 parking slots despite receiving approval for only 15 residential units, and failed to register the project as required under the Real Estate (Regulation and Development) Act, 2016. An inspection revealed the construction of an unauthorised fourth floor and five additional flats.

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Background of the case

The penalty follows a complaint filed by Manepally Krishnaveni, one of the allottees in the Showri Pearl apartment complex. The complainant alleged several irregularities by the promoters, including the construction of 20 parking slots despite only 15 sanctioned flats, non-registration of the project under RERA, non-disclosure of drainage and electrical plans, and structural cracks in the building, the order showed.

According to the order, the complainant stated that no specific parking spots were initially allotted, leading to significant inconvenience. Later, boards were installed to designate parking slots. However, the homebuyer said their assigned spot was next to the watchman’s room, while another slot was placed directly in front of it, blocking their vehicle’s movement.

“The buyer further contends that the approved building plan permitted only three floors, comprising a total of 15 flats (five flats per floor). However, the promoters constructed an additional unauthorised fourth floor, increasing the total number of flats to 20, thereby constituting unauthorised construction of five additional flats,” the order said.

The complainant claims the approved plan allowed only nine car parking spots, but the builder marked 20 slots in the cellar, causing congestion and blocked access.

Refuting the claims, the promoters said that the complainants inspected and approved the flat and parking space before buying it, showing they were satisfied at the time. The promoters also claimed that the project was built with proper approval from the Godhumakunta Grampanchayat and said the complaints about extra floors and parking are irrelevant.

RERA findings and directions

After hearing both parties, the Authority found that the promoters had committed violations of Sections 3 and 4 of the RERA Act by failing to register the project despite having more than the required number of units.

“Upon perusal of the sanctioned plan, as well as submissions made by both parties, it is evident that the project consists of 15 residential units, clearly exceeding the threshold of 8 apartments. Hence, the project does not fall under the exemption contemplated under Section 3(2) of the RERA Act,” TGRERA said.

As per the rules, the project should have been registered under Section 3(1). Since the builder failed to do so, they have violated the law and are now liable under Sections 59 and 60 of the Real Estate (Regulation and Development) Act, the order said. Thus, TGRERA ordered the developer to pay a penalty of ₹2.85 lakh for not registering the project.

On the issue of car parking, TGRERA found that the promoter had marked 20 car parking slots in the cellar area, five more than the 15 residential units sanctioned in the approved layout plan.

The Authority held that such deviation could lead to confusion and disputes among flat owners and directed the promoters to restrict parking allocation to only 15 slots. “Authority is of the view that, to avoid overcrowding and to ensure optimal utility of space for all allottees, the developer shall restrict the number of car parking slots to 15, in accordance with the number of sanctioned units. The apartment owners’ association is accordingly advised to resolve this matter amicably and in consensus with all stakeholders,” TG RERA said in its order.

The promoter of the real estate project could not be reached for a comment.

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No structural defect established, says Authority

While the complainant alleged visible cracks and possible structural defects in the building, the Authority stated that no sufficient evidence was provided to establish a defect as defined under Section 14(3) of the Act. It advised the residents to document such issues thoroughly and notify the promoter in writing for further redressal.