Telangana RERA Orders Refund To Homebuyer And Imposes Rs 9.96 Lakh Penalty On Hyderabad-Based Builder For Selling Unregistered Project

Telangana Real Estate Regulatory Authority (Authority) bench, comprising Justice Dr. N. Satyanarayana (Chairperson), K. Srinivasa Rao (Member) and Laxmi Narayana Jannu (Member) directed the Hyderabad based builder named Krithika Infra Developers to refund the amount paid by the homebuyer for purchasing the flat. Additionally, the bench imposed a penalty of Rs. 9.96 lakh on the builder for marketing, advertising and selling the unregistered project to the homebuyer. Background Facts Homebuyer (Complainant) entered into an agreement with the builder (Respondent) in October 2021 to purchase a flat in Bermuda, Hyderabad and made a payment of Rs.33,84,200 to the builder. Despite repeated assurances from the Managing Director and CEO the builder failed to hand over the flat by the promised date of March 2024. The homebuyer further contended that the builder had neither commenced the necessary construction work nor secured essential approvals including RERA registration and loan clearances. Due to the delay and lack of transparency, the homebuyer decided to cancel the booking and requested a refund. However, the builder failed to initiate the refund process. Therefore, Homebuyer filed complaint before the authority seeking release of his invested amount with interest, stringent action against builder and criminal action against builder company, its Directors and CEO. Observation and Direction by Authority The Authority observed that upon reviewing the agreement, it became clear that the project was being developed on a land area measuring 11,418 square meters. This indicates that the land on which the project was being constructed exceeded 500 square meters and had more than 8 units which meets the statutory requirements under Section 3(2) of the RERA, 2016. Therefore, the Authority held that the builder was required to register the project under RERA before offering any units for sale. As a result, Authority imposed a penalty of Rs. 9,96,000 on the builder for violating various provisions of RERA, 2016. Additionally Authority directed the builder to refund the entire amount of Rs. 33,84,200 paid by the homebuyer along with interest at the rate of 11.05% per annum. Case – Sri Katchala Nanaji Versus M/s Krithika Infra Developers Pvt. Ltd. & others Citation – Complaint No.115 of 2024 Date – 30th DecemberClick Here To Read/Download The Order

Telangana RERA Orders Refund To Homebuyer And Imposes Rs 9.96 Lakh Penalty On Hyderabad-Based Builder For Selling Unregistered Project

Aryan Raj

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