TGRERA orders takeover of stalled Jaya Platinum housing project in Dundigal
Nizampet: The Telangana Real Estate Regulatory Authority (TGRERA) has issued an interim order permitting the Association of Jaya Platinum Project to take over the stalled “Jaya Platinum” residential project since June 2022.
The project, located in Bowrampet Village, Dundigal Municipality, was developed by M/s Jayathri Infrastructures India Pvt. Ltd. The original plan included 60 residential units on 2731.78 sq. yards, with a sanctioned project approved by HMDA and Dundigal Municipality.
According to TGRERA’s, 51 out of 60 units have been sold, with 49 registered in buyers’ names. The reasons for the project’s delay and the Company’s financial crisis remain unclear.
TGRERA identified multiple failures by the developer, Failure to explain project delay and financial crisis, discrepancies in estimated project cost, no evidence to secure completion funds, misleading promises about possession dates, non-submission of quarterly reports, and violation of regulations.
An Engineering Staff College of India (ESCI) inspection revealed that only 66% of the work is complete. The present construction stage is 66% of the total work, with 34% remaining. As of the inspection date, there is no progress, and the complainants said work has stopped since June 2022. After evaluation and analyzing, the balance may take 12 more months from the date of commencing with uninterrupted cash flows.
According to the report, the total estimated cost is Rs. 7.50 crores. However, the engineer’s certificate estimates the cost incurred till April 1, 2022, at Rs. 11.69 crores.
TGRERA revokes developer’s license for ‘Jaya Platinum’
TGRERA’s interim order has granted the Association of Allottees permission to complete the project within eight months, with an additional six-month grace period. A monitoring committee of government representatives, real estate associations, and allottees will oversee the project’s progress.
The order directs the formation of a Core Management Committee (CMC) within the Association to supervise project completion. It will handle tender processes, financial management, and project coordination.
“The original developer, M/s Jayathri Infrastructures, will remain liable for all previous financial obligations, including loans, government dues, and payments to suppliers and contractors,” read the order. The company has been directed to pay Rs. 3.5 lakh to RERA for expenses incurred during a forensic audit. It must immediately hand over project possession to the Association.
