Hyderabad: Man posing as Roy All Diamond Infra Developers partner dupes govt employee; asked to pay Rs 13.5L

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has directed a Hyderabad man posing as a realtor to pay Rs 13.5 lakh to a government employee for falsely promising to sell a land plot.

TGRERA directed him to return Rs 9 lakh with 11 percent interest. Plus, it imposed a penalty of Rs 4.5 lakh for deceiving the buyer through fraudulent claims.

False claims of ownership

Madikonda Mallesh, a government employee residing in Mallapur, stated that one Kethavath Nagesh Nayak introduced himself as a partner of Roy All Diamond Infra Developers and claimed ownership of Plot No. 43 measuring 150 sq. yards in a venture titled “Kaasvi E-City” located in Ferozguda village, Ibrahimpatnam mandal.

Believing Nayak’s representations, Mallesh agreed to purchase the plot for Rs 36 lakh and paid him an advance of Rs 9 lakh in multiple installments between March 8 and March 30 this year.

Agreement executed, then silence

Despite receiving the advance, Nayak delayed executing the sale agreement. After repeated reminders and visits to his office and residence, he finally signed the agreement on June 7, 2024, stipulating that the remaining amount of Rs 27 lakh would be paid within 40 days. However, soon after signing, Nayak became completely unresponsive and untraceable.

Truth uncovered in encumbrance check

Suspecting foul play, Mallesh obtained an Encumbrance Certificate for the said property and discovered that the land belonged to Suvarna Lakshmi Developers and not to Nayak. Furthermore, the RERA registration number printed on the project brochure handed over by Nayak turned out to belong to a different project entirely.

RERA observations: Fraud and Misrepresentation

In its order, RERA observed that Nayak had projected himself as the absolute owner and developer without holding any ownership rights or authorization. His conduct amounted to fraudulent misrepresentation, and he acted as a “promoter” under the Real Estate Act by marketing, negotiating, and collecting payments for the plot.

Key directions issued

Full refund with interest:

RERA ordered Nayak to refund the entire Rs 9 lakh collected from Mallesh along with 11% interest per annum calculated from the date of each payment till the date of actual repayment. The refund must be made within 30 days.

Penalty imposed:

A penalty of Rs 4.54 lakh was imposed under Section 61 of the Act for violations and misrepresentation, to be paid within 30 days to the Telangana RERA fund.

Inquiry ordered:

The Secretary of Telangana RERA was directed to initiate a detailed inquiry and issue a show cause notice to the registered promoters of “Kaasvi E-City”, seeking an explanation on how Nayak was permitted to market and collect payments for their project without authorization.

Consumer protection emphasised

The order emphasised that the Real Estate (Regulation and Development) Act is a consumer welfare legislation and that perpetrators of fraud cannot escape liability on technical grounds. It held that Nayak’s actions caused pecuniary loss to the complainant and violated multiple provisions of the Act.