Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has ordered Hyderabad-based real estate developer Dharani Infradevelopers Pvt Ltd to refund Rs 9.29 lakh to a plot buyer over alleged violations of the Real Estate (Regulation and Development) Act, 2016. The developer also has to pay interest on the amount.
It was found that the company promoted and accepted payments for real estate projects without obtaining mandatory RERA registration.
TG RERA has not only directed the company to immediately stop advertising or selling plots in the projects unless they are registered under the Act but has also instructed its Secretary to initiate suo motu proceedings against the developer for alleged violations of Sections 3, 4 and 13 of the RERA Act.
Plot buyer invested in project
As per the order, the complainant first invested in the developer’s “Fortune County” project at Kothur. However, later, he was persuaded to shift his investment to another project, “Dharani’s Planet Pride”.
From 2013 to August 2020, the buyer paid a total of Rs 19.29 lakh for a 200-square-yard plot. However, the developer neither executed an Agreement of Sale nor registered the plot.
Vexed by the delays, the buyer decided to withdraw from the project and sought a refund. The developer returned Rs 10 lakh in May 2021.
However, as the developer did not repay the remaining Rs 9.29 lakh, the buyer filed a complaint before TG RERA.
Other side of the story
On the other hand, the developer claimed that the buyer had voluntarily changed projects several times and later requested a refund due to personal reasons.
After listening to both sides, TG RERA observed that the developer had collected money from buyers and marketed the “Fortune County” project without mandatory registration under the RERA Act.
Moreover, the developer accepted payments exceeding the statutory limit of 10 percent of the sale consideration without executing an Agreement of Sale.
Based on the hearing, it was declared that the buyer had exercised his legal right to withdraw from the project. TG RERA has not only directed the developer to refund the remaining Rs 9.29 lakh but also to pay interest at SBI MCLR plus 2 percent from August 21, 2020, until the date of payment.
On the Rs 10 lakh already refunded, the Authority ordered the developer to pay interest for the period between August 21, 2020, and May 18, 2021.
