With regard to allottees in Hyderabad, an important judgment was delivered by the Telangana Real Estate Regulatory Authority, stating that buyers cannot be excluded from being recognized as "allottees" just because agreements to sale are not made through registration. As per the judgment, it is enough to consider substantial amounts paid, confirmation of booking, and allotment of specific flats for recognizing the nature of dealings of buyers and developers based on provisions under the Real Estate (Regulation and Development) Act, 2016.
This judgment was delivered in reply to various complaints raised by homebuyers about the Beccun Lifestyle residential project in Kompally area of Hyderabad. The project is under construction by Beccun Infrastructure Limited, and it seems to be suffering from serious delays and non-completion of work.
This case is being considered as a crucial precedent for the numerous people in India purchasing property who usually face legal hassles when developers do not implement the agreed terms despite receiving substantial amounts from customers.
Background of the Case
As per the complaints raised by the buyers before the authority, some homebuyers were booked for flats in the Beccun Lifestyle project between 2020 and 2022. It was said that the developer promised that the construction would be done within two to three years.
But even after four or five years in some cases, the project was incomplete. The homebuyers told the authority that the construction was stopped in the middle and no development was taking place further. Homebuyers informed the authority that construction activity had become extremely slow and irregular, while some towers and blocks remained unfinished altogether.
The authority noted in its observations: “It is the consistent grievance of the Complainants that, despite the lapse of the promised completion period and passage of more than four to five years from the dates of purchase in several cases, the Respondent has failed to complete construction of the project and has not handed over possession of the allotted flats,” as per HT.
Several buyers also claimed that they had sought refunds after losing confidence in the project, but the developer allegedly failed to return the money despite repeated assurances.
Developer’s Argument Before Telangana RERA
The developer attempted to challenge the maintainability of the complaints by arguing that some complainants could not legally be treated as “allottees” because no formally executed or registered agreements for sale existed between the parties.
According to the developer:
- Some agreements filed by complainants were incomplete or unsigned.
- Certain buyers were allegedly investors operating under Memoranda of Understanding (MoUs).
- The disputes were contractual and civil in nature, and therefore outside the jurisdiction of RERA.
The developer argued that such matters should instead be decided by a competent civil court.
Telangana RERA Rejects Developer’s Objections
The Telangana RERA firmly rejected these objections and ruled in favour of the homebuyers. The authority held that the absence of registered agreements alone cannot invalidate the rights of purchasers if substantial evidence exists showing allotment and payment transactions.
The order clearly stated: “The issuance of receipts, acknowledgement of payments, and allotment of specific units clearly establish the existence of a transaction and the intention to transfer such units in favour of the Complainants.”
The authority further clarified that homebuyers qualified as “allottees” under Section 2(d) of the RERA Act because they had paid substantial amounts and had been allotted identified units within the project.
This interpretation strengthens consumer protection under RERA and prevents developers from escaping accountability through technical arguments related to documentation.
Directions Issued to the Developer
The authority directed the developer to complete the Beccun Lifestyle project strictly according to sanctioned plans and provide a proper construction schedule to buyers.
The order stated: “The Respondent shall complete the construction of the project Beccun Life Style in all respects, strictly in accordance with the sanctioned plan.”
Additionally, the authority instructed the developer to communicate a phase-wise and time-bound completion schedule within 30 days to all concerned allottees.
One of the most crucial aspects of the ruling involved flats allegedly constructed without sanctioned approvals. In such cases, Telangana RERA ordered the developer to provide alternative apartments to affected buyers without any extra cost.
The authority directed:
- Alternate units must be of equivalent area, configuration, and value.
- Buyers must receive these offers within 30 days.
- Homebuyers should communicate acceptance within 15 days.
- If no alternate flat is available, the developer must refund the entire amount paid.
This portion of the order highlights the increasing focus of RERA authorities on ensuring lawful construction practices and protecting buyers from unauthorized developments.
Importance of the Judgment
The ruling has broader implications for India’s real estate sector, particularly in cities such as Hyderabad where delayed housing projects continue to affect thousands of families.
The authority also rejected the developer’s attempt to classify the matter as a purely civil dispute. Telangana RERA emphasized that the Real Estate Act is a special welfare legislation enacted specifically to protect homebuyers.
The order observed:
“The RE(R&D) Act is a special legislation enacted to protect the interests of homebuyers, and the jurisdiction of this Authority cannot be ousted merely by characterising the dispute as contractual.”
The authority further underlined that promises made by developers regarding completion timelines are not merely private assurances. Instead, they acquire statutory significance under the RERA framework.
According to the order: “These commitments are not mere private assurances but acquire statutory significance under the Act.”
The judgment reinforces several important principles:
- Homebuyers’ rights cannot be defeated through technical documentation gaps.
- Payment receipts and allotment confirmations carry substantial legal value.
- Developers remain accountable for delays and incomplete construction.
RERA authorities possess jurisdiction even when developers attempt to classify disputes as civil matters.
In recent times, many of the state RERA authorities in India have taken action against delayed housing projects, where they have told the developers to deliver their projects to the buyers, compensate for the delay in handing over projects, give interest, or return the money.
Thus, the Telangana RERA decision brings a new precedent in which it is decided that consumer protection from the law will not only be confined to registered documents.
The decision brings comfort to homebuyers because now the developers can no longer take refuge in lack of documentation if the buyers file a lawsuit against them. Middle-class people invest a lot of their hard-earned money in the house projects, and hence this decision is very beneficial for homebuyers.
Image source- telangana.gov.in
