HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) penalised Sterling Homes Private Limited with a fine of Rs 17.9 lakh for failing to complete the "Sterling Orchids" residential project within the stipulated timeline under the RERA registration.
The project, located in Mallampet Village, Medchal-Malkajgiri District, was originally scheduled for completion by July 1, 2023, with a grace period extending to December 2023. RERA directed the developer to complete the pending work within 90 days from November 14, 2024.
The complaint was filed by flat buyers Allam Nagaraju, S. Arun Kumar, and others, alleging non-compliance with the approved construction plan and failure to deliver the project on time. The complainants alleged that Sterling Homes deviated from the sanctioned plan, especially in the construction of the clubhouse and the absence of a compound wall separating the project from its adjacent Phase II development.
They further accused the developer of using shared amenities between the two phases without prior disclosure, misleading buyers. The complainants also alleged that the developer shifted the Sewage Treatment Plant (STP) location in violation of the approved plan and began Phase II construction without completing Phase I, thereby compromising the rights of Phase I buyers.
In its counter filed with TGRERA, Sterling Homes defended itself, stating that the delays were due to external factors, including regulatory hurdles, heavy rains, labour shortages, and pandemic-related disruptions.
Sterling Homes claimed that it had no intention to delay the project and stated that any deviations from the approved plan were minor, necessary for structural integrity, and approved by relevant authorities.
Sterling Homes denied allegations of malafide intentions, stating that Phase II was undertaken after obtaining necessary approvals and that shared amenities between phases were disclosed to buyers. The developer also claimed that pending work in Phase I was due to financial constraints caused by the complainants’ alleged failure to clear dues.
RERA, in its order, directed the developer to complete the Sterling Orchids Phase I project, including all promised amenities, within 90 days and strictly adhere to the sanctioned plan. The authority also ordered Sterling Homes to pay interest at 10.95% per annum to the complainants on the amounts already paid, as stipulated in the Agreement of Sale.
RERA, in the judgement, said the interest, calculated from the due date of possession, must be paid in instalments to ensure the project's completion on time. RERA also ordered the complainants to remit any pending sale consideration amounts within 45 days to enable the project's progress.
Both parties have been asked to fulfil their individual obligations to ensure the project's completion and avoid further disputes.