No contractual breach: TGRERA asks Janapriya Engineers to refund ₹33.06L to homebuyer

The authority ruled that the buyer is not entitled to interest as the flat booking was cancelled voluntarily before the project’s completion deadline.

Booking cancelled over delay concerns

The case pertains to Mayur Jain and Arushi Jain, who had booked a flat (Unit No. C-1717) in the Janapriya Unnati project at Isnapur in January 2023.

The buyers cancelled the booking in June 2025, citing delay, lack of communication, and absence of clear possession timelines.

They claimed that despite repeated emails and follow-ups, the developer failed to provide written confirmation of possession and delayed responses, forcing them to withdraw and seek a refund with interest.

Builder terms cancellation as voluntary

The developer, however, argued that the cancellation was voluntary and not due to any default on its part. It maintained that the project completion timeline under the agreement was October 2026 and, therefore, no delay had occurred.

It further stated that as per the agreement, refunds in such cases are processed within 90 days from resale of the unit or cancellation, whichever is later, and no interest is payable.

RERA: No delay, Section 18 not applicable

After examining the agreement and submissions, TGRERA held that the project was not due for completion at the time of cancellation and no contractual breach by the builder was established.

The Authority noted that the Agreement of Sale, which mentioned October 2026 as the completion date, overrides earlier assurances or booking form timelines.

As a result, the case does not attract provisions under Section 18(1) of the Real Estate Act, which allows a refund with interest only in cases of project delay.

Refund clause valid, but not indefinite delay

While upholding the validity of the refund clause linked to resale, the Authority rejected the developer’s argument that the refund can be delayed indefinitely until resale.

It observed that such an interpretation would be unfair and against the spirit of the Real Estate (Regulation and Development) Act, which mandates transparency and protection of homebuyers.

30-day deadline, interest if delayed

TGRERA directed the developer to refund the balance amount to the complainant (and lending bank) within 30 days from the order date.

It further ruled that if the refund is not made within this period, the amount will attract interest from September 29, 2025 (90 days from cancellation) until full payment is made.

The order clarifies that:

Buyers cancelling bookings before project deadlines may not get interest under RERA.

However, builders cannot indefinitely delay refunds citing resale conditions.

Refund timelines must remain reasonable and enforceable.