TGRERA Restrains Bank of Maharashtra from Demanding EMIs from Flat Owners

The Telangana Real Estate Regulatory Authority (TGRERA) has issued an interim order restraining the Bank of Maharashtra from collecting EMIs from buyers of a flat in the Aliens Space Station 3 project. The authority invoked Section 36 of the RERA Act to provide relief to the complainants until further orders.

In an interim order issued on December 22, N Satyanarayana, Chairman of TGRERA, directed the deputy zonal manager of the Bank of Maharashtra, Kothaguda, not to demand, debit, or collect any further EMIs from the owners of Flat No. 1116 in the Aliens Space Station 3 project until further orders.

The order followed a complaint by Kalletla Kranthi Kiran (GPA holder of K Madhuri) and K Madhuri of East Marredpally against Aliens Developers Private Limited, Tellapur, and the Bank of Maharashtra, Kothaguda. The complainants stated that they had paid Rs 35,20,533.45 between September 4, 2022, and September 30, 2022, and booked Flat No. 721 in Station 4 of the project on September 4, 2022.

The builder shifted their booking to Flat No. 1116 in Station 3, measuring 1,874 sq ft, for a revised total sale consideration of Rs 1,34,11,555. However, the builder failed to execute a registered Agreement for Sale despite collecting the entire sale consideration in 2022. The complainants stated they were paying EMIs of Rs 1,03,000 per month but noted minimal progress at the site.

They alleged that the respondent unilaterally extended the projected completion date to March 2027, causing financial hardship. Invoking powers under Section 36 of the Real Estate (Regulation and Development) Act, 2016, the TGRERA chairman stayed EMI demands until further orders.

This decision is significant for homeowners and developers, as it highlights the regulatory authority's commitment to protecting the interests of property buyers and ensuring fair practices in the real estate sector.