Hyderabad: Vasavi Realtors asked to pay 10.8% interest to home buyers for not handing over flats
The buyers said they had invested over Rs 1 crore each
By Sistla Dakshina Murthy
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Hyderabad: Telangana Real Estate Regulatory Authority (TG-RERA) has directed Vasavi Realtors LLP to pay 10.8 percent interest to Vasavi Lake City project, Hafeezpet, home buyers for failing to hand over flats within the stipulated time.
23 buyers move RERA over delays
A group of 23 purchasers, led by Venkata Satya Naga Sudheer Kurapati of Miyapur, approached RERA complaining of prolonged delay and poor communication from the developer. According to the agreement of sale, possession was promised by August 2023, but construction remained only 60–70% complete even by February 2025.
Major investments at stake
The buyers said they had invested over Rs 1 crore each, including about Rs 70 lakh via bank transfers and cheques, and another Rs 38 lakh through housing loans. Many alleged that the delay caused serious financial strain, as they continue paying EMIs and rent simultaneously.
Deviations from promised specifications
Complainants also flagged changes in design, citing smaller balconies and utility spaces than those advertised, adding to their frustration alongside the missed delivery deadline.
Builder cites pandemic; RERA rejects defence
Vasavi Realtors argued that Covid-19 disruptions, labour shortages, and logistical hurdles slowed progress and sought relief under pandemic-related extensions.
RERA dismissed this claim, pointing out that the agreements of sale were executed after the peak pandemic period, and the builder knew its obligations when committing to the possession date.
Authority upholds buyer rights
Holding the developer accountable, TG-RERA ordered payment of 10.8% annual interest to affected buyers until possession is handed over, reaffirming that home buyers are entitled to timely delivery or compensation for delays.
