Published On: Thu, Jun 12th, 2025

Builder liable to register villa owners’ association, rules RERA | Hyderabad News

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Builder liable to register villa owners’ association, rules RERA

Hyderabad: The Telangana Real Estate Regulatory Authority (TG-RERA) has directed Prime Infratech, promoter of Prime Alpenia villa project in Mokila, to facilitate registration of a formal association of allottees within 45 days. The directive, issued on June 4, followed a complaint by a villa owner alleging continued harassment and illegal fund collection in the absence of a registered society.In his complaint, Budi Venkata Ramana, who resides in LB Nagar, said that he had purchased a villa in the project in Dec 2021 and despite paying Rs 3,41,000 for corpus and maintenance charges in Feb 2022, the promised registered villa owners’ association was never formed.The villa remained unoccupied until April 2024 and was let out from May 1, 2024. In June and July 2023, he paid maintenance to one of the respondents based on an oral assurance that the society would soon be registered. However, he refused to continue payments to the unregistered group and notified the respondents in March 2024 through a legal notice that he would only pay a legally recognised society. Despite this, he claimed he was coerced into paying Rs 76,725 and that both he and his tenant faced threats, including possible utility disconnection.The authority ruled that the promoter failed to discharge the statutory duty under Section 11(4)(e) of the Real Estate (Regulation and Development) Act, 2016, which mandates enabling the formation of an association or society of allottees. This failure, it observed, directly impairs the rights of buyers and falls well within its regulatory scope. The claim by the promoter that a group of residents voluntarily managing the premises absolves it of responsibility was rejected. The duty to initiate and facilitate a registered association was termed a binding legal obligation, not a discretionary act.Respondents managing the unregistered group argued that they were collecting maintenance to ensure the upkeep of common areas, citing collective decision-making by residents.However, the authority clarified that disputes between residents or unregistered groups do not fall under its jurisdiction. It noted that Ramana had already approached the Telangana Co-operative Department in Oct 2024, which is the competent forum to address such internal matters.TG-RERA reiterated that the obligation to form a registered association and to hand over common areas was not optional. Any continued failure in this regard would invite regulatory consequences under Section 63 of the RE(R&D) Act. Simultaneously, it also held that the complainant was legally required to pay maintenance charges under Section 19(6), regardless of whether the villa was occupied, since the obligation was based on possession and not on actual use.





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