Pay Rs 1.20 Cr to homebuyers for failing to hand over flats on time: Consumer panel to Sahithi Infratech
The panel also directed the firm to pay 12% annual interest and Rs 2 lakh compensation for mental agony and Rs 50,000 towards litigation costs
By - Sistla Dakshina Murthy
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Hyderabad: The Telangana State Consumer Disputes Redressal Commission has directed Sahithi Infratech Ventures India Pvt Ltd and its director to refund the amount collected from the homebuyers for failing to hand over flats on time.
The panel also directed the firm to pay 12% annual interest and Rs 2 lakh compensation for mental agony and Rs 50,000 towards litigation costs.
The commission ruled that collecting money from buyers on the promise of handing over flats and then failing to complete construction within the stipulated time amounts to a deficiency in service.
Background of the complaints
Two buyers approached the State Commission separately after the developer failed to deliver the promised properties or refund the amounts paid:
I. Samuel, a resident of Tadepalli in Guntur district, paid Rs 55.22 lakh in 2021 for a flat in Sahithi’s Karthikeya Panorama at Guttala Begumpet, Serilingampally mandal, Ranga Reddy district.
S. Sulochana, a resident of Hastinapuram, Hyderabad, paid Rs 60 lakh in 2022 for a plot in Sahithi Greenhams at Gundlapochampally, Medchal–Malkajgiri district.
Despite repeated requests, the developer neither completed construction nor refunded the amounts.
Developer’s Defence
The developer contended that its office had been taken over by a bank and that bank accounts were frozen due to criminal cases filed by other parties. It argued that the dispute was civil in nature and that the complainants should seek relief before a civil court.
Commission’s findings
After hearing both sides, the Bench comprising President G. Radharani and Member Meena Ramanathan rejected the developer’s objections. The Commission held that:
The consumer forum has jurisdiction to adjudicate matters involving a deficiency in service, even if alternative remedies exist.
Delay in filing the complaints could not be accepted as a valid defence in the given circumstances.
Failure to complete construction and hand over possession within the agreed timeline clearly constitutes a deficiency in service.
Final order
The Commission ordered the developer to:
Refund the entire amount paid by the complainants with 12% interest,
Pay Rs 2 lakh as compensation for mental harassment, and
Pay Rs 50,000 as litigation costs.
The ruling reinforces consumer rights in real estate transactions and underscores builders’ accountability for delayed or unfulfilled promises.
