HYDERABAD: The Telangana Real Estate Regulatory Authority (TG RERA) directed infrastructure company The Building Co to refund 30 lakh with 11% annual interest to a buyer of a flat in its ‘TBC Rasagna North’ project at Pet Basheerabad in Kompally.
In an order issued on September 4 under the Real Estate (Regulation and Development) Act, the authority found the developer at fault for collecting funds through a ‘pre-launch offer’ without registration or a valid agreement for sale. TG RERA also imposed a penalty of 5 lakh on the promoter for violating the Act, warning that future violations would attract stringent action.
The complainant, Pratik Jalan of Tarbund in Secunderabad, booked a flat in the project in September 2019. He paid 15 lakh in instalments through bank transfers before signing a memorandum of understanding (MoU) on February 27, 2020. The MoU fixed the flat’s price at 48.3 lakh for a built-up area of 1,152 sq ft, and set the delivery timeline at 30 months from the grant of the Greater Hyderabad Municipal Corporation (GHMC) permission, with a six-month grace period.
The GHMC issued building permission on February 15, 2020. With the grace period, the possession deadline fell on August 14, 2023.
Although the project secured TG RERA registration in September 2020, the complainant alleged that the revised MoU and a later agreement of sale signed in August 2023 were one-sided. He sought withdrawal citing delay, mental agony, and lack of protection of his rights as an allottee.
The authority ordered that the refund be paid with 11% interest calculated from May 5, 2025 — the revised possession date after accounting for the Covid-19 moratorium — until the actual date of payment. TG RERA further noted that the promoter accepted advances exceeding 10% of the consideration without executing a proper agreement, in violation of the Act.
The promoter has been directed to deposit the penalty into the TG RERA fund within 30 days.
