Builder cannot unilaterally cancel house sale agreement without buyer’s consent, rules TGRERA
In its recent order, TGRERA directed the complainant to redeposit the Rs 50 lakh within 15 days into the developer’s account
By - Newsmeter Network
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Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has ruled that a builder cannot unilaterally cancel a house sale agreement without the consent of the buyer
Adjudicating a matter, the authority directed a complainant to redeposit the refunded advance within 15 days, thereby restoring the original agreement.
Buyer deposited ₹50 Lakh in 2018
The case pertains to a residential project undertaken by Mantri Developers Private Limited and Jubilee Hills Landmark Projects Private Limited.
The complainant, Kamal Jain of Begum Bazar, Hyderabad, entered into a sale agreement for a residential unit on September 13, 2018, and paid an advance of Rs 50 lakh on October 3, 2018.
With delays in construction, the buyer began seeking clarification from the developer. However, to his surprise, the developer unilaterally credited Rs 50 lakh back to his account on December 12, 2024, stating that the agreement was cancelled.
‘Illegal and Arbitrary’ Cancellation
Terming the action illegal, Jain approached T-RERA seeking justice. The developer argued that the agreement was cancelled due to the buyer’s alleged failure to honour the terms.
After hearing both sides, T-RERA observed that a registered agreement cannot be cancelled unilaterally without mutual consent and held the developer’s action to be invalid.
Direction to restore agreement
In its recent order, TGRERA directed the complainant to redeposit the Rs 50 lakh within 15 days into the developer’s account. The authority clarified that this would effectively restore the original agreement of sale.
Second Case: Builder ordered to fix structural defects
In a separate case, apartment owners of Sri Sai Residency at Madhura Nagar, Nagaram, complained to TGRERA about poor construction quality and safety hazards.
Serious construction deficiencies were detected by residents. They alleged that plastering on walls was coming off, walkways were of poor quality, plumbing work was faulty, leading to water leakages, and lifts were defective and unsafe.
TGRERA orders immediate repairs
Upon inquiry, TGRERA directed the builder to immediately rectify all defects and carry out necessary repairs without delay, in the interest of residents’ safety.
