TGRERA Orders Vasavi Realtors to Pay 10.70% Interest to Home Buyers for Delayed Flats
Hyderabad: Telangana Real Estate Regulatory Authority (RERA) has directed Vasavi Realtors LLP to pay 10.70% interest to home buyers for failing to hand over flats on time in its Vasavi Lake City–West project at Hafeezpet.
The case arose from complaints filed by around 30 buyers, including Anasuya, Sushila Nunna, and Ravikiran Nunna, who booked flats in October 2021 along the Manjeera Pipeline Road. As per the agreement, the developer was required to complete construction and hand over the flats by August 31, 2023.
However, the buyers alleged that the project remained incomplete well beyond the deadline, causing them severe financial distress as they had already paid the entire sale consideration. The complainants told RERA that the reasons cited by the developer for the delay raised suspicions of fund diversion. They also alleged several violations in the construction process and said they were burdened with EMIs and rental expenses due to the prolonged delay.
Responding to the allegations, Vasavi Realtors LLP and its partners Vijay Kumar Erram and Kande Ramesh denied any wrongdoing. The developer claimed that construction was severely affected during the COVID-19 pandemic, as labourers returned to their native places. The firm further argued that the sale agreement allowed for an extension of the handover date in case of unforeseen circumstances, and alleged that the complaints were motivated and baseless.
After hearing both sides, Telangana Real Estate Regulatory Authority ruled that even after considering the grace period, the developer failed to hand over the flats by February 28, 2024, the revised deadline. RERA ordered Vasavi Realtors to pay 10.70% annual interest on the amount paid by buyers, from March 1, 2024, until the date the flats are finally handed over, holding the developer accountable for the delay.
This decision by RERA is expected to set a precedent for other real estate developers who fail to meet their commitments to home buyers. The authority's strict action aims to protect the interests of home buyers and ensure transparency and accountability in the real estate sector.
