Telangana RERA Orders Developer to Refund Buyers for Project Delay
The Telangana Real Estate Regulatory Authority (RERA) has issued a directive to a real estate developer to refund money to property buyers due to the failure to deliver a project on time, following multiple complaints.
Real EstateReraTelanganaDeveloperRefundReal Estate NewsJul 30, 2025
In one case, a buyer from Musunuru Siva Sankara Rao from Peerzadiguda approached RERA after Jayathri Infrastructure failed to deliver a commercial space in the Western Galaxy project by December 2024. The Memorandum of Understanding (MOU) was signed in February 2021. The complainant paid Rs 16 lakh to the developer for a 300 sqft commercial space, as stated in the complaint.
The payment was made in two instalments. The MOU outlined that the property would be delivered by December 2024, and in case of delay, compensation would be provided, including rent payments. The MOU stated that the developer would provide rent of Rs 50 per square foot up to December 2024, and Rs 100 per square foot from January 2025 onwards. After reviewing the case, RERA directed the developer to refund the full amount with an interest of 10.8% per annum from the date of the MOU until the date of realisation.
In another case involving the same project, RERA gave a similar order. RERA noted that over 20 similar complaints had been filed against Jayathri Infrastructure concerning the same project. It also ordered similar action in over 20 similar complaints against the developer concerning the same project. TNN
In another case, Kalvala Suman, from Ghatkesar, also filed a complaint against Jayathri Infrastructure regarding delivery delay in the same project. Suman paid Rs 11 lakh in three instalments. The RERA gave an order similar to the first case. Based on this, the authority issued the same order as in the first case: the developer must refund the entire amount along with 10.8% interest per annum, and the refund must be made within 45 days from the date of the order.
This decision by RERA is a significant step towards ensuring transparency and accountability in the real estate sector. It sends a clear message to developers that they must adhere to their commitments and face legal consequences if they fail to do so. Buyers are encouraged to report any such breaches to RERA to protect their investments and ensure that their rights are upheld.
Frequently Asked Questions
What is the Telangana Real Estate Regulatory Authority (RERA)?
The Telangana Real Estate Regulatory Authority (RERA) is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016. It ensures transparency, accountability, and protection of the interests of homebuyers in the real estate sector.
Why did RERA order the developer to refund the buyers?
RERA ordered the developer to refund the buyers because the developer failed to deliver the project on time, as agreed in the Memorandum of Understanding (MOU). This breach of agreement led to multiple complaints from buyers.
What are the terms of the refund ordered by RERA?
RERA ordered the developer to refund the entire amount paid by the buyers, along with an interest of 10.8% per annum, from the date of the MOU until the date of realisation. The refund must be made within 45 days from the date of the order.
How many complaints were filed against Jayathri Infrastructure?
Over 20 similar complaints were filed against Jayathri Infrastructure concerning the same project. RERA took similar action in all these cases.
What message does this decision send to real estate developers?
This decision by RERA sends a clear message to real estate developers that they must adhere to their commitments and face legal consequences if they fail to do so. It emphasizes the importance of transparency and accountability in the real estate sector.
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