Hyderabad: TGRERA declares Krithika Infra Developers 'defaulter’; asked to refund Rs 41.20L to homebuyer

Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) has declared Krithika Infra Developers a `defaulter' for repeated and wilful violations of the Real Estate (Regulation and Development) Act, 2016.

The move is part of RERA's action to curb fraudulent real estate practices.

The Authority directed the firm to refund Rs 41.20 lakh to a homebuyer with 10.75% annual interest and barred it from undertaking or promoting any new projects in the state.

Flat sold without RERA Registration

The complainant, Polisetty Swetha, a resident of Uppal had purchased Flat No. 308, Block A, 3rd Floor, East-facing, measuring 1,594 sq. ft. in the developer’s “Sheshadri’s Silver Oak” project at Boduppal.

An agreement of sale was executed on June 20, 2022, with a total sale consideration of Rs 41.20 lakh, and possession was promised within two years.

However, the buyer alleged that not only was construction never initiated, but the project itself was not registered with RERA, in violation of statutory norms.

Developer ignored multiple notices

Despite repeated notices and sufficient opportunities, Krithika Infra Developers failed to appear before TG RERA.

Consequently, the Authority proceeded ex parte and adjudicated the case based on available documents and the complainant’s submissions.

The Authority found that the project was marketed and units were sold without obtaining RERA registration, in clear contravention of Section 3 of the Act.

It further observed that the project’s land area exceeded the prescribed 500 sq. mtr threshold and involved more than eight units, making registration mandatory.

Past violations and penalties

TG RERA recalled that similar violations were recorded against the same developer in Complaint No. 115 of 2024 concerning the same project.

In that case, the Authority had already imposed a penalty of Rs 9.96 lakh for unregistered sales, unauthorised marketing, and collecting over 10% of the sale price without a registered agreement.

The Authority also noted that the promoter had failed to comply with earlier refund and penalty directions, reflecting a deliberate disregard for legal obligations.

Refund with interest ordered

Taking note of the complete inaction and failure to begin construction, TG RERA held that the complainant was entitled to a refund under Section 18(1)(a) of the Act.

The developer was directed to repay Rs 41,20,000 with interest at 10.75% per annum from the date of agreement until the actual date of refund. The Authority gave the developer 30 days to comply with the order.

Declared ‘Defaulter’; Future Projects Barred

Citing repeated statutory violations, TG RERA declared M/s Krithika Infra Developers a habitual offender and prohibited it, along with its directors, partners, and associated entities, from advertising, marketing, or launching any new real estate projects within its jurisdiction.

The Authority also directed that the developer’s name and photographs be listed on the official TG RERA website and shared with all other State RERAs and planning authorities, including HMDA and GHMC, to ensure no future project approvals are granted until compliance is verified.

Pattern of fraudulent conduct

TG RERA expressed strong disapproval of the firm’s continued malpractice and non-cooperation, terming its conduct “deliberate, deceptive, and detrimental to public interest.”

The order highlighted that the developer had misled innocent homebuyers by collecting funds without proper registration or sale agreements, amounting to “unfair trade practices.” Any further non-compliance, the Authority warned, would invite penalties under Section 63 of the RE(R&D) Act.