HC takes on file plea on HMDA

Prestige Estates moves court over delay in release of mortgaged units post-occupancy certificate

Update: 2025-05-05 06:57 GMT
The Telangana High Court has admitted a plea by Prestige Estates Projects Ltd against HMDA for not releasing mortgaged portions of a completed housing project despite occupancy clearance.

Justice B. Vijaysen Reddy of the Telangana High Court took on file a writ plea challenging the inaction of the HMDA in releasing the mortgage created over certain portions of a completed residential project in Puppalguda, Rajendranagar mandal, even after the issuance of occupancy certificates.

The judge was hearing a writ petition filed by Prestige Estates Projects Limited seeking directions to HMDA to release the mortgaged areas comprising floors in several towers of the residential project. The petitioner contended that the mortgage was created in compliance with statutory requirements at the time of project approval, and the release of the mortgaged portion should have followed the grant of occupancy certificates.

It was contended that HMDA’s inaction is arbitrary, illegal, and in violation of the Constitution as well as the covenants of the mortgage deed. The petitioner further contended that the continued withholding of the mortgaged property despite fulfilment of all obligations amounted to unjust denial of property rights and was contrary to principles of natural justice. The matter was posted for hearing after the summer vacation.


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