Telangana RERA Imposes 4 Lakh Penalty On Builder For Failing To Install Elevator

Background Facts

The homebuyers (Complainants), who are residents of Tirumalahills, Narayanadri, and Venkatadri, contended that they are facing multiple issues with the project.

Some of these issues include incomplete installation of elevators, failure to provide promised solar/electric fencing, multiple water leakages, insufficient water supply due to a lower capacity connection, poor construction quality, and improper civil work, etc.

Therefore, the homebuyers filed a complaint before the Authority seeking direction to rectify the problems arising from the project.

Contentions of builder

The builder contended that they awarded the contract to ThyssenKrupp for the installation of 3 lifts in 2 blocks and paid 90% of the total contract amount in November 2019. They mentioned that due to Covid-19 and poor management at ThyssenKrupp, the complete installation of 2 lifts was delayed.

The builder further contended that they installed heavy flood/street lights in the setback area and created a concrete pit with flower plants around the border, all of which were completed during the transfer of possession.

Observation and Direction by Authority

The Authority observed that under Section 11(4)(e) of the RERA, 2016, it is the builder's duty to provide and maintain essential services at reasonable charges until the maintenance of the project is taken over by the association of the homebuyers.

Further, The Authority held that the builder violated Section 11(4)(e) of the RERA, 2016 by failing to install the elevator as promised. therefore, the Authority imposed a penalty of Rs. 4,00,000.

Additionally, the Authority directed the builder to provide solar/electric fencing, repair the terrace leakage, and remove encroachments from the common and parking areas within 30 days. Furthermore, the Authority directed the builder to reimburse any amount spent by homebuyers to fix infrastructure within 60 days.

Case – Sri Kandi Lakshma Reddy & others Versus M/s Abhi Constructions

Citation - Complaint No.515 Of 2023