Get Buyers’ Association Registered, RERA Tells Builder

Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has rejected the application of Vazhraa Nirmaan Private Limited for registering Blocks G and H of its Vazhraa Prathik Apartments Phase III. RERA found that the builder continued to claim private ownership over key portions of the project’s clubhouse, which the authority had declared as a common area.

In March, the residents' association filed a complaint that the developer had built a compound wall restricting access to the clubhouse. RERA had directed the builder to transfer ownership of the clubhouse to the residents.

In its application for registering Blocks G and H, the builder included a term — Clause 34 in the Agreement for Sale — which again claimed rights over parts of the clubhouse and allowed access to outsiders. The promoter also cited a pending writ petition in the High Court to justify its position but failed to obtain any stay or relief from the court.

RERA noted that all common areas, including amenities like clubhouses, must be handed over to the residents' association and cannot be retained or commercialised by the developer. Citing repeated non-compliance, misleading clauses and violation of approved plans, RERA rejected the application for Blocks G and H.

“Once the project is completed, the developer has no right to hold on to common areas like the clubhouse. These amenities are meant for the residents and must be handed over to their association. Any attempt to retain or commercialise them goes against the RERA Act,” said Srinivasa Rao, member, TG RERA.

Papers sought from SAS 1 Infratech

TG RERA has issued interim directions to SAS 1 Infratech Ventures Pvt Ltd, seeking papers after receiving complaints from both the investors' association and the landowner of its ongoing project. The builder is facing allegations of financial mismanagement, misuse of investor funds and severe delays in project completion.

The directions were issued in two cases — one filed by the SAS 1 Tower Investors Association and another taken up suo motu by RERA. The association, which claims to represent over 60 per cent of buyers, has demanded action against the builder for the long delay. Landowner Mohini Chawla has raised doubts about whether the association was legally formed and questioned its authority to represent buyers.

In response, RERA has asked both the builder and the investors' association to submit affidavits within seven days. They must clarify whether the association has been registered as per the rules of the Real Estate Act.

If the association has not yet been registered, RERA asked the builder to help set it up as legally required. Once registered, the association will become a party in the main case to ensure all homebuyers are fairly represented.