The Visakhapatnam Metropolitan Region Development Authority (VMRDA) said it would serve a legal notice on YTR Enterprises Limited — a real estate builder — after receiving complaints from several homebuyers that it has failed to hand over residential flats to them for years.
The YTR Residency Flat Owners Welfare Association, comprising several individuals who had bought flats from the builder, had recently submitted a memorandum seeking legal action against it citing irregularities and violations of law. The association alleged that the builder had sold flats that were mortgaged to VUDA (now VMRDA) and complained about non-completion of the building.
VMRDA Commissioner P. Koteswara Rao said that they would initially ascertain the facts in the case for which a legal notice will be sent seeking an explanation from the company. After that, strict action would be taken if the company was found to be guilty of the irregularities, he said.
The association members said 87 families had purchased flats from the company M/s YTR Enterprises Limited in Survey 77/3 of Tallavalasa, Bheemili mandal in 2013. Among the 87 families, 52 have taken bank loans to buy the flats. However, the flats have not been handed over to the owners till now. Moreover, the owners are anxious as the construction of the flats has come to a standstill for the last one year. They also said that the company management has not been responding over it since the last two years.
“As per the plan, construction of flats must be completed by 2017. It has been over seven years since construction began. I have been paying monthly instalments for the flat without even knowing when the flat would be handed over to us. There are a number of middle-class people who have been facing severe financial crisis,” said E. Prasad Rao, a member of the association.
He added that VUDA had earmarked 10% of undivided and unspecified land of about 1,281.53 square yards to be retained as ‘mortgage’ by indicating 17 flats in the second floor and shown in the approved plan by VUDA. However, the builder has undertaken registration of those 17 flats also, he alleged.
The association members also brought to the notice of VMRDA Commissioner that SBI has lodged a complaint against management of YTR Enterprises Limited after they availed a loan by mortgaging the same property with SBI, by suppressing the fact that they have already mortgaged the same property to the LICHFL, while availing the loan.