IN THE HIGH COURT OF JUDICATURE FOR THE STATE OF TELANGANA HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 28982 OF 2025

09.01.2026 Between:

Mahanandhi Builders ….. Petitioner And Telangana Rajiv Swagruha Corporation Limited (TRSCL), Rep. by its Vice-Chairman and Managing Director & another ….. Respondents

O R D E R:

Challenging the proceedings of Respondent No.1 -

Telangana Rajiv Swagruha Corporation Limited (Corporation) dated 21.01.2025 cancelling allotment of A02 Tower to petitioner, this Writ Petition is filed. Petitioner seeks to cancel the proposal of the Corporation to sell the semi-finished flats in Tower A02 in Sadbhavana Township, Pocharam Municipality, Ghatkesar, Medchal-Malkajgiri District which was published in the Broacher dated 10.09.2025 and consequently direct respondent – Corporation to renew the time for completion of the project for a period of six months in Tower A02.

2. Subsequently, petitioner filed I.A. No. 4 of 2025 seeking to amend the prayer by adding a new prayer to declare the action of Respondents in not granting NOC to Petitioner despite the requests made by them though such an NOC was granted to other allottees of other Towers at Pocharam Village, as arbitrary and violative of Article 154 of the Constitution of India.

3. The undisputed factual matrix of the case is that Respondent-Corporation invited Applications in respect of unfinished towers at Pocharam for completing the work. Petitioner was allotted A02 Tower at Pocharam vide proceedings Lr.No. 04/TRSCLLEM/Unfinished Towers/2023 07.06.2023; they paid EMD and also paid part of balance amount, but did not complete the work of construction within the permitted time of four months. Petitioner therefore, is stated to have made Application dated 04.10.2024 for extension of time and accordingly, time was extended up to 05.01.2025 by Corporation's letter dated 17.10.2024. However, since petitioner failed to pay the amounts within time, the Corporation passed the impugned order of cancellation dated 21.01.2025 cancelling the allotment and forfeiting the token advance and first installment amount of Rs. 3,05,10,000/-.

Petitioner approached the Corporation and submitted letter dated 24.03.2025 for issuance of ‘NOC’ for completing the work, however, NOC was not given. The Corporation also issued communication to petitioner calling upon to pay Rs. 29.51 Crores. Petitioner submitted a list of 40 members who are ready to purchase the Flats, but ‘NOC’ was not given. The Corporation brought a proposal to sell the semi-finished flats in Tower A02 at Pocharam vide its broacher and Notification No. 17/TGRSCL/EM/Unfinished Towers/2025dated 10.09.2025. Issuance of NOC by the respondent-Corporation is a must for the builder (petitioner) to obtain loans from the Banks to finish the project. If the respondent-Corporation refuses to give NOC, according to petitioner, it will cause irreparable loss and prejudice to the builder (petitioner) and also to the buyers who purchased Flats through him.

3.1. It is further stated, the Corporation terminated the contract and issued fresh communication that the tower would be re-allotted to some other builder. Therefore, some of the buyers approached this Court and filed Writ Petition No. 28502 of 2025 wherein this Court granted interim order.

4. Respondent Corporation filed counter mainly contending that the Writ Petition is not maintainable since the dispute is a commercial/contractual one. It is stated that the Government has decided to sell the unfinished towers of the Corporation in 'as is where is' basis and invited bids. As stated above, petitioner was allotted A02 unfinished tower at Pocharam for completion of the work, however, Petitioner failed to make prompt payments and hence his allotment was cancelled. They approached this Court challenging that cancellation with an inordinate delay of Eight Months from the date of cancellation letter dated 21.01.2025.

5. Heard Sri Vedula Srinivas, learned Senior Counsel assisted