Hyderabad: Aditya Constructions Ordered to Refund ₹82.43L to Flat Buyer Amid RERA Violations

Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) has issued a directive to Aditya Constructions to refund ₹82.43 lakh along with 10.75% interest to a person who purchased a flat in the company’s Aditya Capitol Heights project. The authority found that the project is incomplete, unregistered under the Real Estate (Regulation & Development) Act, 2016 (RERA), and lacks a defined delivery schedule, entitling the buyer to a refund under Section 18 of the Act.

The complainant, M Vamshidhar, a resident of Begumpet, booked Flat No. 1107 in Block B of the project located in Hafeezpet and entered into an Agreement of Sale on March 23, 2018, for ₹1,02,62,500. He claimed to have paid ₹85,55,367, including bank loan disbursements under a tripartite agreement with PNB Housing Finance Limited. The buyer also opted for a “Pre-EMI” scheme, where the builder allegedly promised to service loan instalments until the project's completion.

However, the complainant stated that the developer failed to pay even a single instalment, forcing him to bear EMI charges of around ₹74,000 per month. He alleged construction delays exceeding six years, the absence of an Occupancy Certificate, and the failure to stipulate a possession timeline in the agreement. Additionally, the land under Survey No. 78 was included in the list of prohibited properties under Section 22-A of the Registration Act and was involved in long-standing litigation, contrary to the builder’s assurances of a clear title in Clause 17 of the agreement.

The complainant sought a refund, penalty, compensation, and an inquiry into alleged violations and deviations from sanctioned plans. The builder, however, denied all allegations and accused the buyer of payment defaults that allegedly voided his eligibility for the Pre-EMI scheme. The company argued that the project was nearly complete, lifts were installed, and an Occupancy Certificate had been applied for. It also claimed exemption from RERA registration, stating the project permissions predated the Act’s implementation.

TGRERA rejected the builder’s claims and noted several issues. No completion or occupancy certificate was produced, and the building permit issued in March 2015 required completion by March 2020. The sale agreement lacked a possession date, violating Section 13(2) of the Act. The authority also acknowledged official communication from the District Collector restricting registrations on the project land due to pending litigation. COVID-19 could not be cited as the primary cause of delay because the completion deadline had already lapsed before the pandemic.

In its final order, TGRERA directed the builder to refund ₹82,43,085 with 10.75% interest from the dates of each payment. Other requests, including penalties for deviations and allegations of fund diversion, were rejected due to a lack of supporting evidence. Failure to comply will attract a penalty under Section 63 of the Act.