TG RERA directs Hyderabad-based builder to facilitate registration of Resident Welfare Association

TG RERA has directed builder Prime Infratech and its partners to register an association of allottees within 45 days. Villa owner Budi Venkata Ramana accused them of collecting unauthorized funds and failing to register the promised society.

Hyderabad: In a significant relief to complainant Budi Venkata Ramana, the Telangana Real Estate Regulatory Authority (TG RERA) has directed city-based builder Prime Infratech, Gachibowli, and its partners to facilitate the registration of an association of allottees.

TG RERA Chairman N. Satyanarayana, along with members K. Srinivasa Rao and Laxminarayana Jannu, issued the order on June 4, 2025, instructing the respondents to comply within 45 days.

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Venkata Ramana, the owner of Villa No. 10 in Plot No. C-11, Chitra Layout, LB Nagar, alleged that the builder had collected “unauthorized funds” and failed to register the resident welfare association. Though he had paid ₹3.41 lakh in 2022 towards the corpus fund and maintenance charges, the promised society was never formed.

The villa, registered via sale deed in 2021 and assessed for property tax, remained vacant until April 30, 2024, and was rented out from May 1, 2024. Following continued inaction, Ramana refused to pay further maintenance charges, citing the absence of a registered association. He also alleged harassment and threats from the respondents, including warnings of utility disconnection.

In May 2023, the builder conducted a meeting with allottees, assuring the formation of a registered association and requesting payment for June and July 2023, which the complainant paid. However, the association was not registered. A legal notice was issued on March 7, 2024, reiterating Ramana’s willingness to pay dues only to a formally registered association.

In his complaint, Ramana requested the imposition of a penalty, not less than double the amount paid—₹2,43,755—towards maintenance without legal registration.

The respondents claimed they were neither liable nor responsible for the reliefs sought and argued that the complaint lacked merit.

However, in its ruling, TG RERA directed the respondents to take all necessary steps to enable and facilitate the formation of the association of allottees as per the RERA Act and applicable local laws.

The complainant was also instructed to comply with statutory obligations under Section 19(6) of the Act and continue paying maintenance charges until the registered association is constituted and assumes responsibility.