TGRERA orders Jayathri Infra to return Rs 11.6 lakh for undelivered project in Serilingampally

Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has ordered Jayathri Infrastructures to refund Rs 11.6 lakh along with 11 per cent annual interest to a complainant.

The complainant invested in a commercial space in the yet-to-be-launched ‘Western Galaxy’ project at Gopanpally, Serilingampally Mandal.

The regulatory body found the developer guilty of failing to initiate the project or deliver possession, despite collecting funds from multiple buyers.

Investment made in 2021 for office unit

According to the complaint, the buyer booked a 200 sq. ft. commercial office space (Unit No. 08/J) on the second floor of the project in 2021. An MoU signed on October 10 promised project completion within four years by December 2024.

The buyer paid Rs 11.6 lakh upfront and was also assured monthly rental compensation of Rs 50 per sq. ft. until possession and Rs 100 per sq. ft. post-possession.

Developer inaccessible, site remains vacant

Despite the commitment, the developer failed to hand over possession and has remained unreachable. An inspection carried out by the Engineering Staff College of India (ESCI), as directed by TGRERA, found that the project site is still vacant with no sign of construction or activity.

Moreover, no proof of ownership or legal authority to develop the land was provided by the developer.

Litigation delays and multiple complaints

TGRERA noted that the land on which the project was proposed is under litigation in the Supreme Court due to a dispute stemming from a prior agreement of sale dated March 25, 2021.

This legal hurdle has effectively stalled the project. Additionally, over 40 similar complaints have been filed against the same developer for related grievances.

The authority has already imposed a penalty of Rs 36.7 lakh in earlier cases for violation of Section 3 of the Real Estate (Regulation and Development) Act, 2016.

Right to refund upheld under RERA

The Authority cited Section 18(1) of the RERA Act, which provides that if a promoter fails to deliver possession on time, the buyer is entitled to a full refund along with interest.

The authority also relied on Supreme Court judgments in Imperia Structures Ltd vs. Anil Patni and Newtech Promoters vs. State of UP, both of which affirmed that the buyer's right to refund is unconditional in such cases.

Intentional misrepresentation by developer

The authority observed that Jayathri Infrastructures has consistently misled buyers by collecting money without having legal ownership or registration of the project.

The pattern of false assurances and failure to comply with contractual obligations, the authority noted, points to mala fide intent on the part of the developer.

Refund ordered with 11% interest

TGRERA has directed the developer to refund the entire paid amount along with interest at 11 per cent per annum, calculated from the date of the MoU until the date of actual realisation. The interest rate is based on the highest current SBI marginal cost of lending rate (9%) plus 2 per cent.

The refund must be made within 45 days of the date of the order. Failure to comply will attract punitive action under Section 63 of the RERA Act.

Complaint disposed, costs to be borne individually

With these directions, the authority has disposed of the complaint. Both parties have been instructed to bear their own legal expenses.