TGRERA Orders Vasavi Realtors to Pay 10.70% Interest to Home Buyers for Delayed Flats
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 the Vasavi Lake City–West project.
Real EstateReraVasavi RealtorsHome BuyersConstruction DelayReal Estate NewsJan 2, 2026
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.
Frequently Asked Questions
What is RERA?
RERA stands for Real Estate Regulatory Authority. It is a regulatory body established to protect the rights of home buyers and ensure transparency and accountability in the real estate sector.
Why did RERA order Vasavi Realtors to pay interest?
RERA ordered Vasavi Realtors to pay 10.70% interest to home buyers because the developer failed to hand over the flats on time, causing financial distress to the buyers.
What were the allegations made by the home buyers?
The home buyers alleged that the developer misused funds, violated construction norms, and caused them financial distress due to the prolonged delay in handing over the flats.
What was the developer's response to the allegations?
The developer, Vasavi Realtors LLP, denied all wrongdoing and claimed that the construction was affected by the COVID-19 pandemic, leading to a shortage of labor. They also argued that the sale agreement allowed for an extension in case of unforeseen circumstances.
What is the revised deadline for handing over the flats?
The revised deadline for handing over the flats, as determined by RERA, is February 28, 2024. The developer failed to meet this deadline, leading to the order for interest payment.
