Hyderabad realty firm to pay 10 pc interest over project delay

Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) has directed Hyderabad-based Vasavi Infracon to pay 10.7 per cent interest to buyers after it delayed the handover of flats in two of its projects.

According to a report by The Times of India, the action was taken after 82 complaints were filed against the construction firm. In its order dated August 25, the authority named Vasavi S Urban at Bachupally, developed by Vasavi Infracon LLP, and Vasavi Lake City West at Hafeezpet, developed by Vasavi Realtor LLP.

The authority rejected the company’s claims that the COVID-19 pandemic and disputes had caused the delays. A complainant, Raghunath Biswal, stated that he had purchased Flat B10-1502 in Vasavi S Urban for Rs 44.85 lakh and paid Rs 40.77 lakh. In another complaint, Venkata Ramana Puthi said he had bought Flat B05-514 for Rs 39 lakh and paid Rs 35.45 lakh.

The two complainants also raised concerns over the reduced number of passenger lifts in the finished project, adding that they were asked to pay a debris charge of Rs 30,000.

In its defence, the construction firm stated that a dispute over blocks 8, 9 and 12 of the project and labour shortage during COVID-19 had caused the delay. Following the hearing, TGRERA dismissed Vasavi Infracon’s argument, stating that the pandemic had ended in 2021-22 and that disputes regarding other blocks could not be grounds for the delay.

The firm has been asked to pay the interest to buyers annually until they are given possession of the flats. The authority also said the arrears must be cleared within 60 days.