Telangana RERA Bars Jayathri Infrastructures from Selling Units in Delayed Hyderabad Project, Seeks Completion Plan from Buyers’ Group
The Telangana Real Estate Regulatory Authority (TG-RERA) has taken decisive regulatory action against Jayathri Infrastructures by restraining the company from conducting any sales or promotional activities related to its long-delayed residential project, Jaya Diamond, located in Hyderabad. In a detailed interim order issued,TG-RERA also instructed the flat buyers, now organized as a registered association, to submit a detailed project completion plan that outlines how they intend to carry forward and complete the stalled development.
The Jaya Diamond project was originally scheduled for completion in December 2022. However, according to the submissions made by the allottees, there has been little to no progress on the construction site since February 2022. Facing a prolonged delay and lack of response from the promoter, the distressed homebuyers approached TG-RERA with a formal complaint, seeking regulatory intervention and protection under the Real Estate (Regulation and Development) Act, 2016.
Acting on the complaint, TG-RERA issued a strong interim order that effectively freezes all sales-related activities linked to the Jaya Diamond project. The authority specifically barred Jayathri Infrastructures from advertising, marketing, booking, or selling any units under the project. The order also prevents the developer from inviting expressions of interest from new buyers or promoting the project in any form. To further ensure control over the project’s financial dealings, TG-RERA directed its secretary to initiate steps for the suspension of the project’s RERA registration number. It also instructed that the bank account associated with the project be frozen to avoid unauthorized withdrawals or misappropriation of remaining funds.
In response to the developer’s failure to deliver the promised homes, the allottees have taken a proactive stance. Over 60 buyers came together to form the Jaya Diamond Welfare Association, a registered society established on January 9, 2024. The association formally approached TG-RERA with a request to take over and complete the remaining construction of the project. In their appeal, they invoked Section 8 of the RERA Act, which empowers the authority to transfer project execution responsibilities to a buyers’ association or a competent authority when the promoter defaults on commitments.
TG-RERA welcomed the association’s initiative and asked them to submit a comprehensive completion roadmap. This roadmap is expected to detail the projected timeline for finishing the construction, along with proposed financial strategies, resource mobilization plans, and the technical capabilities of the team responsible for overseeing the work. In addition, the authority ruled that any further sale consideration or payments due from the buyers should be deposited directly into the bank account designated by the association. This measure aims to safeguard the financial interests of existing allottees and ensure that all future collections are used exclusively for the completion of the project.
The authority also considered serious allegations made by the buyers’ group against the managing director of Jayathri Infrastructures, Srinivas Kakarla. According to the association’s submission, Kakarla has absconded and is no longer reachable. The buyers alleged that the developer misappropriated funds collected from sale agreements covering over 80 percent of the project’s flats and failed to fulfill any compensation clauses mentioned in the agreements. The lack of response from the developer and his disappearance further fueled concerns of deliberate abandonment.
Jayathri Infrastructures, in its official submission to TG-RERA, acknowledged that the project had been significantly delayed. The company cited multiple reasons for the delay, including financial hardship, legal issues, termination of the original contractor, and challenges in finding a new development partner. It also pointed to ongoing criminal complaints and claimed to have already spent over ₹1.5 crore on the project. The developer requested more time to either complete the construction or refund the buyers. It also mentioned discussions with potential partners to revive the project. However, TG-RERA observed that these claims were unsubstantiated and not backed by any documentary evidence. The authority concluded that there were no credible indicators to suggest that Jayathri Infrastructures was in a position to resume or complete the project.
In light of these findings and the invocation of Section 8 of the RERA Act by the buyers’ association, the authority has asked the developer to immediately hand over all relevant documents to the association. This includes construction drawings, approvals, legal papers, and project-related records. The order further restrains the developer from transferring, selling, or creating any encumbrance on the unsold flats or the land associated with the project.
The current interim order is part of a broader regulatory review, and the next hearing in the matter is scheduled for April 25, 2025. Until then, the ban on sales, marketing, and use of project funds by the developer will remain in force. TG-RERA is expected to review the buyers’ completion plan during the next session and may issue a final directive based on the feasibility of the proposed approach.
Image source- telangana.gov.in
