`Nine-year delay’: TGRERA calls out Pacifica Construction; asks to handover flat in AAVAS HYDERABAD’ to homebuyer

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has directed Pacifica Construction Pvt. Ltd. to execute the registered sale deed and hand over possession of a residential flat in its `AAVAS HYDERABAD’ project at Bachupally.

The authority took note of the prolonged delay and lack of transparency.

The order was passed in a complaint, No. 58/2025, filed by Rizvana Begum and Mohammed Ibrahim, who have been waiting for possession of their flat for nine years despite paying a substantial portion of the sale consideration.

Background of the Dispute

The complainants had booked Flat No. AW5-504 in the AAVAS HYDERABAD project in December 2016 for a total consideration of Rs 32.88 lakh. As per the booking form and welcome letter, possession was promised within 36 months by December 2019.

Subsequently, in January 2019, the promoter executed an unregistered Agreement for Sale, revising the possession timeline to 60 months, setting a new deadline of January 2024. Even this revised timeline was not adhered to.

The complainants stated that they had already paid Rs 24.22 lakh and alleged that despite the flat being in a deliverable condition, the promoter neither registered the flat nor handed over possession.

Builder’s Stand

The developer contended that there was no delay, arguing that the project timeline had been extended due to COVID-19 and RERA extensions. The respondent also stated that it was ready to register the flat, subject to clearance of balance dues, and claimed that GST at 8% was lawfully collected.

The promoter further denied allegations of misleading advertisements and stated that “Nebula” was only a brand name used for marketing.

Key observations by TG RERA

TG RERA observed that the promoter failed to deliver possession under both the original 36-month timeline and the revised 60-month timeline. The Authority noted that altering possession dates after collecting substantial payments places allottees at a disadvantage and reflects unequal bargaining power.

The Authority strongly criticised the practice of changing possession timelines through later agreements, calling such clauses one-sided and unfair, and contrary to the spirit of the Real Estate (Regulation and Development) Act, 2016.

It was also noted that the Occupancy Certificate for the project was issued on September 12, 2025, leaving no legal impediment for registration and handover.

Relief on Compensation and GST

On the issue of compensation for delay and mental agony, TG RERA clarified that it does not have jurisdiction to award compensation, and directed the complainants to approach the Adjudicating Officer separately under Section 71 of the Act.

Similarly, on the allegation of excess GST collection, the Authority held that GST-related disputes fall exclusively within the jurisdiction of GST authorities and advised the complainants to seek a remedy under the GST law.

Misleading project branding pulled up

TGRERA took serious note of the promoter advertising the project as “Aavaas by Nebula” instead of its registered name “AAVAS HYDERABAD.”

The Authority held that such practices undermine transparency and can mislead homebuyers searching for project details on the RERA portal.

The promoter was directed to strictly use only the registered project name in all advertisements and communications.

Final Directions

TG RERA directed the promoter to:

Furnish a clear and itemised statement of accounts to the complainants within seven days.

Complete registration and hand over possession within 30 days after payment of legitimate dues.

Use only the registered project name “AAVAS HYDERABAD” for all promotional activities.

The complaint was disposed of with a warning that non-compliance would attract penal action under Section 63 of the Act. No costs were awarded.