Vasavi Lake City–West: TGRERA orders Vasavi Realtors to Pay 10.70% interest to home buyers for failing to hand over flats
The case arose from complaints filed by around 30 buyers, including Anasuya, Sushila Nunna, and Ravikiran Nunna, who booked flats in October 2021 along the Manjeera Pipeline Road in Hafeezpet
By - Sistla Dakshina Murthy
Representational Image
Hyderabad: Telangana Real Estate Regulatory Authority (RERA) has directed Vasavi Realtors LLP to pay 10.70% interest to home buyers for failing to hand over flats on time in its Vasavi Lake City–West project at Hafeezpet.
Complaints by nearly 30 home buyers
The case arose from complaints filed by around 30 buyers, including Anasuya, Sushila Nunna, and Ravikiran Nunna, who booked flats in October 2021 along the Manjeera Pipeline Road.
As per the agreement, the developer was required to complete construction and hand over the flats by August 31, 2023.
However, the buyers alleged that the project remained incomplete well beyond the deadline, causing them severe financial distress as they had already paid the entire sale consideration.
Allegations of fund misuse and construction violations
The complainants told RERA that the reasons cited by the developer for the delay raised suspicions of fund diversion. They also alleged several violations in the construction process and said they were burdened with EMIs and rental expenses due to the prolonged delay.
Developer Cites COVID Impact, Denies Charges
Responding to the allegations, Vasavi Realtors LLP and its partners Vijay Kumar Erram and Kande Ramesh denied any wrongdoing. The developer claimed that construction was severely affected during the COVID-19 pandemic, as labourers returned to their native places.
The firm further argued that the sale agreement allowed for extension of the handover date in case of unforeseen circumstances, and alleged that the complaints were motivated and baseless.
RERA finds delay beyond grace period
After hearing both sides, Telangana Real Estate Regulatory Authority ruled that even after considering the grace period, the developer failed to hand over the flats by February 28, 2024, the revised deadline.
Interest payable from March 1, 2024
RERA ordered Vasavi Realtors to pay 10.70% annual interest on the amount paid by buyers, from March 1, 2024, until the date the flats are finally handed over, holding the developer accountable for the delay.
