HYDERABAD: Telangana Real Estate Regulatory Authority (TG RERA) has imposed a penalty of 9.9 lakh on a developer for multiple violations of the Real Estate (Regulation and Development) Act. The authority also directed the company to refund 33.8 lakh along with interest to the complainant, Katchala Nanaji, after finding that the company failed to deliver the flat he purchased.
According to the complaint, Katchala Nanaji had entered into an agreement with the developer in Oct 2021 for a flat in their project Sheshadri’s Silver Oak at Beeramguda. The complainant made an advance payment of 33.8 lakh at a rate of 2,500 per square feet.
Despite assurances from the company’s managing director and CEO, the flat was not handed over by the promised date of March 2024. The complainant alleged that construction did not even commence, and the company failed to secure requisite approvals, including RERA registration and loan clearances.
Following repeated delays and lack of transparency, the complainant sought cancellation of the booking and a refund. However, the company failed to return the money, leading the complainant to approach TG RERA.
On examining the case, TG RERA found that the company had accepted advance payments exceeding 10% of the flat’s cost before formalising a written agreement for sale, violating Section 13(1) of the Act.
The respondent was directed to pay a penalty of 9.9 lakh and refund 33.8 lakh to the complainant with interest at 11.05% per annum from Feb 5, 2022, until the date of refund.
