- Refund the entire amount to the buyers
- Resolve the construction defects
- AP RERA issues order to Vertex Siri Developers
AP RERA has issued orders to Vertex Siri Developers, stating that it is not appropriate to sell car parking slots separately along with common areas. The developers have been directed to refund the amount collected from the buyers for these parking slots. Additionally, the developers have been instructed to immediately address the construction defects mentioned by the complainants in relation to the project.
In the Vertex Siri Signa project, P. Satyanarayana and P. Anuradha from Vijayawada booked a flat in Tower-A for Rs. 71,75,000. They signed the agreement on July 4, 2019. The total amount paid was for 830 square feet of plinth area, 515 square feet of common area, and 120 square feet for the car parking, along with an additional Rs. 2.5 lakhs for other amenities. However, they raised complaints with AP RERA stating that selling common areas and car parking slots separately is illegal, and there were several construction defects. They also mentioned that the corpus fund and maintenance accounts had not been transferred, the promise to set up solar fencing was ignored, and the corpus fund for the sewage treatment plant was not provided.
The buyers mentioned that the developer had collected Rs. 25,75,000 for the common area at the rate of Rs. 5,000 per square foot and Rs. 2 lakhs for the car parking slot, which they claimed was against the rules. They requested AP RERA to issue directions for the developer to refund these amounts, Rs. 25,75,000 for the common area and Rs. 2 lakhs for the car parking slot, with 24% interest.
Despite collecting money for the car parking slot, the developers did not allocate the parking spaces properly and unilaterally assigned them as they pleased, according to the buyers. The project brochure had stated that car parking would be provided on a first-come, first-served basis. After investigating the issue, AP RERA formed a committee with experts from V.R. Siddhartha Engineering College to identify the construction defects. The committee reviewed the facts and submitted its report to RERA, suggesting recommendations to resolve the construction issues. On July 27, 2023, RERA ordered the developer to fix the defects within 30 days.
However, the developer did not address the issues correctly, and as a result, complaints were raised regarding leakage of rainwater. After hearing all the arguments, RERA has now issued final orders.
RERA has clarified that car parking slots in Basement-1 and Basement-2 were set up, but according to Section 2(n) of the Andhra Pradesh (Apartment Promotion, Construction and Ownership) Act, 1987, basements fall under the category of common areas. Therefore, they cannot be sold separately. Despite being included as a car parking area in the approved plan, RERA stated that it is not permissible to sell it. The RERA Act also prohibits the sale of car parking spaces in common areas, and it was made clear that the cost of the apartment includes the common areas.
As a result, RERA directed the developer to hand over all common area facilities, along with relevant keys and documents, to the newly formed association. The process must be completed within 30 days. Additionally, RERA ordered the developer to allocate the parking spaces to the first buyers, based on the “first-come, first-served” principle.
RERA emphasised that construction defects must be rectified within 60 days. The developer was instructed to install solar fencing on the boundary wall within 30 days. The developer must also return the amount collected for the common area, Rs 25,75,000, with 11% interest, and Rs 2,00,000 for the car parking, with 9% interest.
Furthermore, RERA recommended transferring the corpus fund and the maintenance account to the new association. Due to violations of the regulations, the developer has been fined Rs 10 lakhs, which must be paid to RERA within 30 days. In addition, the developer is required to pay Rs 1 lakh towards legal expenses to the complainants.
