Hyderabad: TGRERA asks `The Building Co' to pay Rs 35L to homebuyer over project delay

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has ordered The Building Co, an infrastructure firm, to refund Rs 30 lakh with 11% annual interest to a homebuyer.

The directive, issued on September 4, stems from a complaint regarding the 'TBC Rasagna North' project in Kompally.

TGRERA also imposed a Rs 5 lakh penalty on the developer for illegally collecting funds through a 'pre-launch offer' without a valid agreement for sale or project registration, a direct violation of the Real Estate (Regulation and Development) Act.

The Complaint

Pratik Jalan of Secunderabad booked a flat in the project in September 2019. He paid Rs 15 lakh in installments before signing a Memorandum of Understanding (MoU) on February 27, 2020. The MoU set the flat price at Rs 48.3 lakh for a 1,152 sq ft built-up area.

The delivery deadline was set for 30 months from the date of the Greater Hyderabad Municipal Corporation (GHMC) building permission, with an additional six-month grace period. The GHMC issued the building permission on February 15, 2020, making the final possession date August 14, 2023.

Although the project secured TG RERA registration in September 2020, Jalan claimed that a revised MoU and a subsequent agreement of sale, both signed in August 2023, were one-sided. Citing project delays and "mental agony," he sought a withdrawal and full refund.

RERA’s verdict

TG RERA sided with Jalan, finding the developer at fault for both the delay and the initial collection of funds through an unregistered `pre-launch offer’.

The authority ordered that the refund of Rs 30 lakh be paid with 11% annual interest, calculated from May 5, 2025, until the actual payment date.

A Rs 5 lakh penalty was imposed on the promoter for violating the Real Estate Act, with a warning of more stringent action for future transgressions.

The ruling serves as a stern reminder to developers to adhere to regulations and protect consumer rights.