Hyderabad: TGRERA orders Surabhi Estates to refund Rs 35 lakh to buyer over project violations
The authority held that the builder collected large sums from the public without securing mandatory clearances and issued cheques that later bounced
By - Sistla Dakshina Murthy
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Hyderabad: The Telangana Real Estate Regulatory Authority (TG-RERA) has directed Surabhi’s Signature Villas in Osman Nagar to pay Rs 35 lakh to the complainant within 45 days and register the project under RERA.
The authority held that the builder collected large sums from the public without securing mandatory clearances and issued cheques that later bounced.
Agreement signed in 2020 without required approvals
The complainant, Allamneni Moni Chandra, a resident of Jubilee Hills, had entered into an Agreement of Sale on January 6, 2020, for Villa No. 20 in Phase-I of the project, priced at Rs 1.30 crore.
He paid Rs 1 crore upfront, which the builder acknowledged.
The buyer later agreed to shift his allotment to Phase-II after being assured a bigger villa. However, the complainant later found that neither Phase-I nor Phase-II had RERA approval at that stage.
Refund assurances followed by dishonoured cheques
After delays in obtaining approvals and progressing the project, the builder agreed through an MoU to refund the amount and pay an additional Rs 69 lakh as compensation.
Multiple cheques issued towards repayment were returned marked ‘Funds Insufficient.’ A second set of cheques issued after a settlement discussion also bounced, prompting the buyer to file a complaint before the authority.
Builder claims project exempt from RERA
The respondent denied the allegations and asserted that Phase-I had HMDA approval granted in 2015, prior to the enactment of the RERA Act.
The builder argued that the complainant willingly withdrew and was no longer an allottee entitled to relief under RERA. The promoter also described the complaint as an attempt to extract excess compensation.
Authority rejects defence, declares project ongoing
After reviewing the submissions and documents, the authority held that the project fell under the category of an ‘ongoing project’ as no Occupancy Certificate had been issued.
The authority stated that pre-RERA approvals alone do not exempt a builder when a project remains incomplete. The order also noted that the builder advertised and collected bookings for Phase-II before securing statutory approvals, violating Section 3 of the Act.
Refund ordered; interest-on-Interest claim disallowed
The authority observed that the complainant had already received Rs 1 crore of the principal and Rs 34 lakh of the agreed interest. The pending balance of Rs 35 lakh was ordered to be paid within 45 days.
However, the authority declined the request for additional interest on the unpaid compensation amount.
Regulatory action and restrictions imposed
The authority issued the following directions:
- The project must be registered under Telangana RERA within 30 days.
- The developer is barred from advertising, selling or marketing any unit until registration is complete.
- Proceedings under Section 59 will be initiated for pre-launch offers made for Phase-II.
- Failure to comply will attract penalties under Section 63 of the Act.
