Hyderabad: Homebuyers Struggle as Real Estate Scams Unfold
The dream of owning a home is turning into a nightmare for many in Hyderabad, as real estate scams involving pre-launch and buy-back offers leave buyers stranded. In the twin cities, several customers have lost crores of rupees in poorly executed deals by builders. To address this issue, the Telangana Real Estate Regulatory Authority (TG-RERA) and the state government have stepped in to deliver justice to the affected homebuyers.
In a significant move, TG-RERA has decided to assign the incomplete Platinum Project by Jayathri Infrastructure in Dundigal to a third-party builder. This decision, approved by the state government, is based on Section 8 of the RERA Act of 2016. The Platinum Project is one of several incomplete developments that TG-RERA is planning to rescue through similar measures.
The Platinum Project, announced by Jayathri Infrastructure led by Kakarla Srinivas, was proposed to be built on a site of 3,267 square yards. The plan included a stilt floor for parking and five upper floors for residential or commercial use, with a built-up area of 5,865 square yards. However, the builder sold 60 apartments—51 to buyers and nine mortgaged to the HMDA—without registering the project with TG-RERA. Buyers were misled by claims of rapid construction, and crores of rupees were collected through pre-launch offers.
Unfortunately, the funds collected for the Platinum Project were reportedly misused, leaving the construction incomplete. Disappointed buyers filed a complaint with TG-RERA in September last year. In response, TG-RERA is not only taking action against Jayathri Infrastructure but is also investigating similar cases involving other builders like Sahithi Infratech Ventures and Mantri Developers.
Sahithi Infratech Ventures has abandoned multiple projects in areas like Gachibowli, Gundlapochampally, and Ameenpur, despite collecting large sums of money from buyers. Similarly, Mantri Developers has left luxury apartment buyers near Jubilee Hills Check Post in distress after misusing funds. TG-RERA is actively working to hand over these incomplete projects to reliable third-party builders.
According to RERA officials, any construction involving more than eight apartments falls under their jurisdiction. However, many builders bypass this by selling flats without registering with TG-RERA. This leads to the diversion of funds for other purposes, resulting in stalled or abandoned projects. Buyers in such developments are left in a lurch, unable to recover their investments or secure their homes.
K Srinivas Rao, a TG-RERA member, stated that several builders and agents have been misleading customers with false promises. He assured that all such builders will be held accountable for their actions, as the regulatory authority intensifies efforts to protect homebuyers and restore their trust in the real estate sector.
