Hyderabad: TGRERA asks Apoorva Infra to refund ₹4.35L for project delay
The authority has asked the infra company to refund the amount after finding that the developer failed to complete the project within the promised timeline
By Sistla Dakshina Murthy
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Hyderabad: Telangana State Real Estate Regulatory Authority (TG RERA) has directed Apoorva Infra to refund Rs 4.35 lakh along with 10.70% annual interest to a complainant.
The authority has asked the infra company to refund the amount after finding that the developer failed to complete the project within the promised timeline and allowed its RERA registration to lapse.
The Authority held that internal disputes with landowners and vague claims of Covid-related delays cannot dilute the statutory rights of an allottee under the Real Estate (Regulation and Development) Act, 2016.
Background of the case
The complainant, D. Shivannageshwar Rao of Suryapet district, booked an open plot in Swaminarayana Eco Township, developed by Apoorva Infra, and paid Rs 4.35 lakh on June 9, 2022, about one-fourth of the total sale consideration of Rs 17.41 lakh.
Despite the payment, the project failed to see basic development, such as roads, drainage, water supply, electricity, or amenities. Registrations were also not being carried out due to disputes between the developer and the landowners.
Dishonoured cheque and refund dispute
Following repeated requests for a refund, the developer issued a cheque for Rs 4.35 lakh, which was later dishonoured due to insufficient funds.
While the developer claimed the cheque was only a “security instrument,” the complainant argued it was issued specifically towards a refund, a claim supported by WhatsApp communications placed on record.
TG RERA observed that the issuance of a cheque for the exact amount received, without any contemporaneous clarification, weakened the developer’s stand that it was merely a security cheque.
Developer’s defence rejected
Apoorva Infra contended that the complainant breached the agreement by failing to pay the balance amount and had not formally cancelled the allotment.
The promoter also cited Covid-19 disruptions and resistance from local landowners as reasons for the delay. However, the Authority rejected these arguments, noting that:
The project’s RERA completion date was May 24, 2023
No credible proof of project completion was produced
RERA registration had lapsed without seeking an extension
Covid could not be cited as a force majeure for commitments made post-pandemic
TG RERA held that landowner disputes are internal issues of the promoter and cannot be used to justify indefinite delays.
Buyer’s Right to Exit upheld
The Authority reiterated that under Section 18(1) of the RERA Act, an allottee has an absolute right to withdraw from a project and seek a refund if the promoter fails to deliver possession within the agreed timeline.
It was observed that the complainant cannot be forced to wait indefinitely in the absence of revised timelines, supplementary agreements, or credible assurances of completion.
Final Directions by TG RERA
TG RERA directed Apoorva Infra to:
Refund Rs 4.35 lakh with 10.70% annual interest (SBI MCLR + 2%) from June 9, 2022, until actual payment.
Complete the refund within 40 days from receipt of the order.
Immediately initiate steps to complete the project as per statutory requirements.
Refrain from advertising, marketing, or selling plots in the project until RERA registration is duly extended.
The Authority warned that any violation would attract penalties under Section 63 of the RERA Act.
Complaint disposed
With these directions, TG RERA disposed of the complaint, making no order as to costs.
