- When approvals are complete but land records become a hurdle, who protects the homebuyer?
- Hafeezpet Lake City buyers caught between banks, builder and government records
- ~ 2,000 buyers affected | ~ 1,000 awaiting final home-loan disbursements | Possession delayed for several buyers
(King Johnson Koyyada, 9030034591)
A Section 22-A dispute has left thousands of homebuyers in Hyderabad facing uncertainty, with the Hafeezpet Lake City project emerging as a prominent example. The project had obtained approvals from the concerned local authorities and Telangana RERA, and construction was completed with an Occupancy Certificate (OC) issued.
However, the project was subsequently brought under the ambit of Section 22-A, creating complications for buyers who had already invested in their homes. Around 2,000 customers are understood to have purchased flats in the project. Nearly 1,000 buyers who purchased homes through bank loans are reportedly awaiting final disbursements. Following the Section 22-A issue, banks have stopped releasing the final instalments to the developer.
With the final payments pending, several buyers are reportedly unable to complete the possession process. Families who expected to move into their homes are now caught between the developer, lending institutions and government authorities.
Buyers question the system
Buyers have expressed frustration over being affected by a land-record classification issue despite the project having obtained regulatory approvals and an OC. The situation has also resulted in criticism of the developer, although Section 22-A matters primarily concern government land records and classification.
Hafeezpet Lake City has therefore become an important case in the wider debate over how completed and approved projects should be treated when subsequent land-record issues arise.
Vasavi Group has reportedly approached the court and obtained an order in connection with the matter. However, buyers allege that the order has not been effectively implemented, leaving the issue unresolved.
Government intervention sought
The episode has raised broader concerns among homebuyers and the real-estate industry over the impact of Section 22-A on completed projects. Industry stakeholders and affected buyers are seeking a clear mechanism from the Telangana government to resolve such cases quickly and ensure that genuine homebuyers do not remain trapped between government records, banks and developers.
The key question remains: If a project has secured statutory approvals and an Occupancy Certificate, what protection should be available to buyers when a subsequent Section 22-A issue affects the property?
SECTION 22-A | BUYER IMPACT
- ~2,000 — Customers reportedly affected
- ~1,000 — Home-loan buyers awaiting final disbursement
- RERA — Project had regulatory approval
- OC — Occupancy Certificate issued
- Banks — Final loan payments reportedly withheld
- Possession — Delayed for affected buyers
- Court order — Obtained by Vasavi Group, but buyers allege implementation remains pending