Failed Project: Hyderabad firm to refund Rs 11 lakh

TG RERA highlighted that it had already imposed a penalty of Rs 36.70 lakh on the developer in August 2024 for violating Section 3 of the Real Estate (Regulation and Development) Act, 2016.

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) directed Hyderabad-based Jayatri Infrastructure India to refund Rs 11 lakh to a woman after its project failed to take off.

The project in question is, Western Galaxy’ commercial project at Gopanpally in Serilingampally Mandal. Several other complaints have also been filed regarding the same project. Following an investigation, the TGRERA found that the plot was empty, with no construction and no sign that the firm owned the plot.

In her complaint, the victim, Kolimala Rupa Chandrika said that on June 4, 2021, she had signed an agreement with Jayatri Infrastructure India for an office space on the second floor of the proposed commercial complex.

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She paid a total of Rs 11 lakh towards the unit, including Rs 1 lakh through UPI in February 2021, Rs 3 lakh through UPI, and Rs 7 lakh in cash in June 2021. The developer had assured possession by December 2024 and promised compensation in case of delay.

However, the project failed to materialise, and Chandrika never got the possession. The complainant informed TGRERA that repeated attempts to contact the company were unsuccessful.

When she personally visited the office, Chandrika found it shut, while the phone number provided by the developer had become inactive.

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During the hearing, TGRERA noted that over 20 similar complaints had already been filed against the same builder in connection with the “Western Galaxy” project.

It referred to an inspection conducted by the Engineering Staff College of India (ESCI), which found that the project site remained completely vacant with no signs of construction.

It also noted that there was no evidence establishing the developer’s ownership or legal authority to undertake the project.

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The authority observed that litigation over a portion of the land was pending before the Supreme Court and that the project had never been registered under RERA.

TGRERA highlighted that it had already imposed a penalty of Rs 36.70 lakh on the developer in August 2024 for violating Section 3 of the Real Estate (Regulation and Development) Act, 2016.

Since the penalty had already been levied in earlier proceedings relating to the same project, no fresh penalty was imposed.

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