Complaint Order No 378_2023

BEFORE THE ADJUDICATING OFFICER,
TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY,
HYDERABAD.
Dated, this the 5th day of JANUARY, 2024.
Present:- Sri Syed Lateef-ur Rahman,
Adjudicating Officer.
COMPLAINT No.378/2023/TS RERA
Between:

K.N.V.S.K.Prasad, Flat # 201, 3-73/3A,
MMTS Road, Chandanagar, Hyderabad 500 050.
…Complainant.
and
M/s Aakriti Constructions & Developers Pvt.Ltd.,
Sri K.Manoj Kumar S/o K.Shiv Kumar,
at Adityaram Square, D.No.8-2-293/82/A/646/A,
4th Floor, situated at Road No.36, Jubilee Hills,
HYDERABAD 500 033.
…Respondent.

This complaint came up for hearing on 07.12.2023 and 16.12.2023 in the
presence of the Complainant in person and of Sri V.Ramesh Babu, Advocate for the
Respondent, and after hearing the arguments of both sides and having stood over for
consideration till this day, the following order is passed:

ORDER
This is a complaint filed by the complainant under Section 31 read with Section
71 of Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as
“the Act”) read with Rule 35 of Telangana State Real Estate (Regulation and
Development) Rules, 2017 (hereinafter referred to as “the Rules”) to award
compensation of Rs.15,00,000/- (Rupees Fifteen lakhs only), interest and also cost of
the proceedings.

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Later, the respondent/promoter got revised sanction of building plan from

HMDA and building permit vide Order No.102436/BP/Plg/HMDA/2014, dt.17.05.2019
for construction of multi-storied residential building consisting of Blocks A, B, C and D
with sub-cellar + Cellar + Ground + 7 upper floors and Club House with Cellar + Ground
+ upper floors, on a land admeasuring 15496 Sq. yards or Ac.3-8 Gts out of total land
admeasuring Ac.6-27 ½ Gts as mentioned above and more fully described as “schedule
property” in the Agreement for Sale between the parties.
(c).

The respondent/promoter has commenced the development of multi-storied

residential apartment complex on the schedule ‘A’ property mentioned in the
Agreement for Sale.

The respondent/promoter has also registered the project of

Aakriti ESTA of Blocks A, B and C on 11.12.2018 under Registration No.PO1100000070
and Block D on 14.09.2019 under Registration No.PO11000001148 under the

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According to the complainant, he entered into an Agreement of Sale,

dt.25.01.2021 with the respondent/promoter for purchase of a flat in Block ‘D’ bearing
No.405 on fourth floor. The sale consideration was fixed at Rs.73,95,130/- (Rupees
Seventy three lakhs, ninety five thousand, one hundred and thirty only), which includes
all applicable taxes, corpus fund and maintenance charges for two years. The schedule
of payment of consideration was mentioned in Schedule-D, i.e., Payment Plan. The
complainant and respondent have also executed a tripartite agreement with the Bank
for home loan and committed timelines under it was also expired.

The time for

completion of the project was agreed as (17) months, which comes to an end by
25.06.2022.
(e).

It is stated by the complainant that he has paid 90% of the total flat cost, i.e.,

Rs.65,01,599/- (Rupees Sixty five lakhs, one thousand, five hundred and ninety nine
only) by 07.09.2021.

The respondent/promoter has failed to share Completion

Certificate and hand over portion of flat within (17) months from the date of agreement
of sale under clause No.7 and became defaulter from 26.06.2022 as per clause (9) 9.1
and (9) 9.2.
(f).

The complainant pleads that though he made 90% payment of total cost of flat by

07.09.2021, the respondent has failed to complete remaining 10% of the work as per
committed time lines.

But, the respondent made demands for payment of

Rs.7,22,400.99 (Rupees Seven lakh, twenty two thousand, four hundred and ninety nine
paise) on 10.10.2022 and again for payment of Rs.8,78,550/- (Rupees Eight lakhs,

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The complainant further pleads that the respondent shared status of the project

with regard to stage of construction. Thereupon, the complainant made visit and found
that the construction of flat was incomplete without any doors; electricity, plumbing,
sanitation, lifts etc and the common amenities were also incomplete.
(h).

Therefore, the complainant prays to award compensation, interest and cost of

the proceedings.
REPLY BY THE RESPONDENT:
3(a). The Respondent in their counter contends that all the allegations made are false
and baseless and that the complaint is not maintainable in law or on facts.
(b).

According to respondent, the complainant committed default in paying 10% of

the amount as agreed.

The complainant also admitted in Complaint No.715/2022

before the Authority on 26.09.2023 that he visited the site in the month of October,
2022 at the time of laying of tiles.
(c).

The respondent admits that the time frame as per agreement for completion of

project is (17) months, which would be around June, 2022. It is stated that due to
Covid-19 period, more than one year period has passed without work, as all the workers
left to their home town.

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The respondent further contends that an e-mail was sent expressing inability to

complete the Project in time due to Covid-19 and seeking further time of five months. It
is stated that the respondent completed the project and intimated the complainant
through e-mail dt.21.10.2023 and to pay balance amount of 10%. The respondent
pleads that fittings of water tap, switch boards, sanitation and other items are attended
only after receiving balance of 10% amount. The applicant deliberately avoided to
make payment of balance 10% amount.

However, the complainant wrote a letter to

Reserve Bank of India and State Bank of India against respondent with false allegations
of financial fraud, but the respondent was given clean chit in the matter. Therefore, the
respondent prays to dismiss the complaint.
REJOINDER BY THE COMPLAINANT:4(a). In reply to the stands taken on behalf of respondent, the complainant filed a
rejoinder contending that the respondent is trying to misuse exemption on the ground
of Covid. It is stated that the agreement was entered into after Covid period.
(b).

It is contended that 10% of the amount to be paid was lying with the Bank. As

the respondent/promoter failed to complete 10% of works, the said amount was not
released. According to the complainant, the respondent sent e-mails dated 10.10.2022,
21.10.2022 and 11.11.2022 to pay balance amount of 10% with interest, and threatened
to cancel the allotment, but did not share occupancy certificate obtained from the
concerned authorities. On visit, the complainant found that the flat was not in ready-tomove position.

The respondent violated the terms and conditions of agreement and

failed to give possession of flat in time. Therefore, the complainant is entitled for
compensation beside interest.

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To support respective contentions, Exs.A1 to A11 for complainant and Exs.B1 to

B22 for respondent have been marked with consent.
POINT FOR CONSIDERATION:
6.

Now the Point for determination is whether the complainant is entitled for

compensation, interest and cost and if so, to what amounts?
7.

POINT:
The complainant in person contended that the respondent violated the terms

and conditions of agreement of sale Ex.A1 so also the provisions of the Act and Rules. In
support of his claim, he reiterated the grounds mentioned in complaint and placed
reliance on documentary evidence Exs.A1 to A11.

Therefore, he prays to award

compensation and interest as prayed.
8.

Per contra, learned Counsel for the respondent contended that the respondent

developed the project, but with some delay. Learned Counsel submits that the period to
hand over possession of flat was 17 months from the date of agreement of Sale. The
period of 17 months comes to an end by 25.06.2022.

According to learned Counsel,

there was 2nd wave of Covid-19 during the year 2021 and all workers left for their
home-towns for more than a year. As such, there is delay of 5 months in completing and
handing over possession of flat. Learned Counsel further submits that 90% of the
construction was completed and only the fitting of doors, electricity, plumbing,
sanitation etc., was to be attended, which the complainant himself mentioned in the
complaint.

However, the complainant failed to make payment of 10% of balance

consideration as agreed and at last after due notices the allotment was cancelled
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The case of both the parties rests on only documentary evidence produced and

got marked by them with consent. Out of Exs.A1 to A11 on behalf of complainant and
Exs.B1 to B22 on behalf of respondent, Ex.A3, A4, A6, A9, A10 and B11 to B14 is
correspondence between the complainant and the respondent. Ex.A3, Ex.A4, Ex.A6,
Ex.A10, Ex.B11, Ex.B12 and Ex.B14 are the e-Mails addressed by the respondent to the
complainant, whereas Ex.A9 is the e-Mail addressed by the complainant to the
respondent. The other correspondence, i.e., e-Mails filed by both the parties is the
correspondence between the complainant and the officials of State Bank of India (SBI).
10(a). Let us first refer to the correspondence/e-Mails addressed by the respondent to
the complainant.

Ex.A3 e-Mail dt.29.07.2022 addressed by the respondent to the

complainant shows that the respondent admitted about delay in developing the Project
due to the reasons beyond their control and informed that they will hand over flat no
later than 5 months from the date of clearance of 100% payment, and in case of failure
within the stipulated time, monthly compensation of Rs.15,000/- would be paid. They
also mentioned that delay penalty applies for delayed payment also.
(b).

Ex.B11 e-Mail dated 10.10.2022 addressed by the respondent to the complainant

shows that the respondent mentioned in it that they have completed the construction
work of all flats in the block and started handing over possession of the flats and at last
requested the complainant to share the demand with Bank to make technical
verification and disbursement of amount.

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Ex.B12 e-Mail dated 21.10.2022 addressed by the respondent to the complainant

shows that the respondent mentioned the same facts in this letter as in Ex.B11.
(d).

Ex.A4 e-Mail dated 11.11.2022 (Ex.B13 is also copy of Ex.A4) addressed by the

respondent to the complainant shows that the respondent mentioned in it that there is
delay in 100% payment as per Agreement of Sale and the respondent demanded for
payment as per agreed Plan, otherwise they will be forced to issue cancellation notice in
three (3) days from the date of said e-mail.
(e).

The complainant contends that the amounts mentioned to pay in Ex.B11 e-Mail

Dated 10.10.2022, Ex.B-12 e-Mail dated 21.10.2022 and Ex.A4 (Ex.B13) e-Mail dated
11.11.2022 are Rs.6,00,801/-; Rs.7,22,400.99 Ps and Rs.8,78,550.10 Ps respectively.
According to him, in Ex.B11 the rate of interest charged is 24% referring to Agreement
of Sale Ex.A1, which is not correct.
(f).

Ex.A10 e-Mail dated 28.11.2022 addressed by the respondent to the complainant

shows that the respondent admitted that possession of flat was to be given in 17
months as per Agreement of Sale Ex.A1, i.e., by June 2022, but mentioned that due to 2 nd
Wave of Covid-19, RERA granted extension of 6 months and they will hand over flat by
January, 2023. They further mentioned that they completed flooring of the flat in the
month of May, 2022 and once the payment process is completed, they will hand over the
flat.
(g).

Ex.B14 e-Mail dated 18.01.2023 (Ex.A6 is also copy of Ex.B14) addressed by the

respondent to the complainant shows that the respondent have cancelled the flat
allotted to the complainant due to non-payment of instalment as per Agreement of Sale
Ex.A1. It is also mentioned in it that the complainant paid an amount of Rs.61,91,999/-

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Now let us refer to only e-Mail addressed by the complainant to the respondent.

Ex.A9 e-Mail dated 26.11.2022 addressed by the complainant to the respondent shows
that the complainant has mentioned in it that the team of respondent is referring
payment schedule as per Agreement of Sale Ex.A1, and the complainant is referring to
the completion of the Project and compensation as per Agreement of Sale Ex.A1. The
complainant has also raised the issues of rate of interest and that the Agreement of Sale
Ex.A1 is not prepared as per RERA.
12(a). Now let us turn to the correspondence between the complainant and the SBI
officials. Ex.B1 to B10 are e-Mails exchanged between the complainant and the State
Bank of India. Ex.B2 is the complaint given by the complainant against the respondent
to the Asst. General Manager, State Bank of India, Customer Service Department alleging
financial fraud in home loan by the respondent. The complainant has mentioned that
the Builder has sent an e-Mail on 10.10.2022 with regard to handing over of possession,
but the Project is not completed as per status e-Mail given on 15.10.2022. It is also
stated that Occupancy Certificate has not yet been served.
(b).

Ex.B3 is e-Mail dated 21.11.2022 addressed by the Branch Manager, Alkapur

T’ship to the complainant acknowledging receipt of complaint of the complainant and
informing that the complaint has been forwarded to Hyderabad Circle for necessary
action.

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Ex.B4 is e-Mail dated 24.11.2022 addressed by the complainant to the AGM,

Customers, State Bank of India stating inter alia that till September, 2021, 90%
(Rs.65,01,599/-) of total flat cost is paid and 14 months completed, still the Builder is
forcing to pay remaining 10% of flat cost, which is against RERA Rules.
(d).

Ex.B5 is e-Mail dated 26.11.2022 sent by the complainant to the AGM, Customer

LHO, Hyderabad, wherein the complainant has stated that no action has been taken on
his complaint regarding fraud and requested to take early action.
(e).

Ex.B6 is another e-Mail dated 04.12.2022 addressed by the complainant to the

Bank mentioning same facts as mentioned in the earlier e-Mails and requesting for
proper action and if proper action is taken, then he will get compensation from
25.06.2022 as per Agreement of Sale Ex.A1.
(f).

Ex.B7 e-Mail dated 08.12.2022 sent by AGM, Customer, LHO, Hyderabad to the

SBI, Alkapur Township shows that the complaint received from the complainant was
forwarded for necessary action and to send suitable reply to the customer under advice
to them.
(g).

Ex.B8 e-Mail dated 14.12.2022 sent by AGM, RACPC2, Hyderabad to SBI Alkapur

Township shows that the Bank officials contacted the Builder and AGM inspected the
property and work is under final stages and Builder is confident of handing over flats in
January, 2023 and registration may start in January, 2023. It is also mentioned in it that
the Project is delayed due to Covid.
(h).

Ex.B9 is e-Mail dated 10.01.2023 sent by the complainant to the AGM, RACPC2

Hyderabad, wherein the complainant has mentioned that his concern is about
remaining 10% work and that the mention in response of Bank on 14.12.2022 that the
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Ex.B-10 is another e-Mail dated 18.01.2023 sent by the respondent to the Bank

stating that as per Agreement of Sale Ex.A1, customer has to pay 100% payment at
flooring Milestone. But, inspite of repeated requests, the customer refused to pay the
balance. Hence, they had to cancel the unit.
(j).

Ex.B1 e-Mail dated 28.07.2023 sent by the Reserve Bank of India, Centralised

Receipt and Processing Centre (CRPC) to the complainant shows that the complaint filed
by the complainant has been examined and rejected.
13.

Before going to appreciate the respective contentions of the parties, it has to be

mentioned at the cost of repetition that the present case has to be decided only on the
basis of documentary evidence relied on by the parties mentioned supra.
14.

Admittedly, the Agreement of Sale Ex.A1 was executed on 25.01.2021. Under it,

the time for completion of Project is 17 months, which comes to complete by
25.06.2022. The complainant made payment of 90% of flat cost by 07.09.2021. The
grievance of the complainant is that the respondent failed to complete remaining 10%
work from September to June, 2022 and hand over possession of flat as agreed, whereas
the respondent pleads that the complainant admitted that the said work of fitting of
doors, electricity, plumbing, sanitation etc were only to be attended, but the
complainant failed to make payment of remaining 10% of balance consideration and
that the said work could have been completed in one day.

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In Ex.A1 Agreement of Sale, Schedule-D shows as to how payment as mentioned

therein at various stages of construction should be made. Condition 1.5 of Agreement of
Sale Ex.A1 says that the allotee shall make payment as per payment plan set out in
Schedule-D Plan. Similarly, there is Schedule ‘D’ Payment Plan in Tripartite agreement
Ex.A11 as in Agreement of Sale Ex.A1.
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The correspondence between the complainant and the respondent in Para 10 (a)

to (g) and correspondence between the complainant and the Bank in Para 12(a) to (j) as
mentioned above goes to show that the complainant is not disputing that 90% of the
construction of the flats has been completed as pleaded by the respondent. It is not the
case of the complainant that as per Agreement of Sale Ex.A1 and Tripartite Agreement
Ex.A11, especially as mentioned in Schedule-D Payment Plan, he has to make payment
as alleged by the respondent. But the complainant tries to contend that Completion and
Occupancy Certificates are yet to be obtained by the respondent and as such the fault
lies with the respondent. This contention of the complainant cannot be considered
leaving the issue of payment of amounts as per Schedule-D Payment Plan. If the
complainant had made payment as per Schedule-D Payment Plan and then there was
any fault or failure on the part of the respondent, the contention on behalf of the
complainant on said aspect would have some force. Therefore, there does not appear to
be any force in the said contention on behalf of the complainant. Having regard to
agreement with regard to payment as per Schedule-D Payment Plan in Agreement of
Sale Ex.A1 and Tripartite Agreement Ex.A11, it is not open for the complainant to argue
as above.

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Admittedly, the Agreement of Sale Ex.A1 was executed in the month of January,

2021. The 2nd wave of Covid-19 was during the year 2021. The period of 17 months for
handing over possession of Flat was to end by June, 2022.

In the light of

correspondence as noted supra and the fact that the complainant did not dispute about
completion of construction upto 90% and that only 10% of construction, as admitted,
was to be attended and the complainant failed to make remaining payment as per
Schedule-D Payment Plan in Agreement of Sale Ex.A1 and especially on account of 2 nd
wave of Covid-19 during the year 2021, there does not appear to be much force in the
contentions advanced on behalf of the complainant and

there appears to be

considerable force in the pleas advanced on behalf of the respondent.
18.

It is pertinent to note that the complainant made complaint to the Bank officials

alleging fraud against the respondent. After due examination of the complaint, the Bank
authorities rejected the request of the complainant for action against the respondent.
This conclusion of the Bank authorities supports the stand taken by the respondent. If
there was truth in the allegations leveled by the Complainant against the respondent,
the conclusion arrived at by the Bank officials could have been different.
19.

The other documents on record are copy of legal notice dated 22.08.2023 Ex.B19

said to have been got issued by the complainant to the respondent during pendency of
this complaint. Ex.B20 is said to be copy of postal receipt for sending reply Ex.B21 to
the complainant by the respondent. Ex.B22 is said to be the photocopy of un-served
returned postal cover with acknowledgment for sending said reply notice Ex.B21. Since
the notice Ex.B19 issued during pendency of this complaint, it is not necessary to attach
much importance to the notice Ex.B19 and reply notice Ex.B21. Ex.B18 is the copy of
order dt.01.11.2023 passed by the Authority in Form-M complaint (vide Complaint
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For all the foregoing reasons, the conclusion that emerges on the Point is that the

complainant is not entitled for the compensation and interest claimed. The Point is
answered accordingly against the complainant and in favour of the respondent.
21.

In the result, the complaint is dismissed. However, having regard to facts and

circumstances of the case, the parties shall bear their own costs.
Typed to my dictation, corrected and pronounced by me in open Court on this, the
5th day of JANUARY, 2024.

Sd/ADJUDICATING OFFICER,
TS RERA: HYDERABAD.
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
NONE
DOCUMENTS MARKED FOR COMPLAINANT BY CONSENT
Exhibit
Date of
DESCRIPTION OF DOCUMENT MARKED
Number Document
Ex.A1
25.01.2021 Copy of agreement of sale by and between M/s. BHEL
Employees Tilak Welfare Mutually Aided Co-operative Housing
Society Limited and M/s. Aakriti Constructions & Developers
Pvt.Ltd. and Sri Kancharla NVSK Prasad (Complainant herein)
Ex.A2
10.11.2022 Account Status Report maintained by Aakriti Constructions &
Developers Pvt. Ltd/Respondent consisting of two pages.
Ex.A3
29.07.2022 e-Mail sent by the Builder/Respondent Legal team to the
customers.
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11.11.2022 Another e-Mail sent by the Respondent to the Complainant.
11.11.2022 Statement of Interest Calculation prepared by the Respondent
in respect of Flat of the Complainant.
18.01.2023 Another e-Mail sent by the Respondent to the Complainant
cancelling allotment.
30.01.2021 Home Loan Arrangement/sanction letter issued by SBI,
Serilingampalli, Hyderabad.
19.06.2019 Building permission orders issued by the Commissioner,
Municipality, Tellapur, Sangareddy District.
26.11.2022 Mail sent by Complainant to the Respondent through G-mail.
28.11.2022 Mail (reply) sent by respondent to the complainant.
25.01.2021 Copy
of
Tripartite
Agreement
between
the
Builder/Respondent, Complainant and the Banker.
DOCUMENTS MARKED BY CONSENT FOR RESPONDENT

Exhibit
Date of
DESCRIPTION OF DOCUMENT MARKED
Number Document
Ex.B1
28.07.2023 Closure of intimation issued by the RBI, CRPC to the
Complainant.
Ex.B2
20.11.2022 Complaint sent by the Complainant through e-Mail to the AGM
SBI and other Bank officials.
Ex.B3
21.11.2022 e-Mail sent by SBI to the Complainant.
Ex.B4
24.11.2022 e-Mail sent by the Complainant to the Bank.
Ex.B5
26.11.2022 e-Mail sent by the Complainant to Bank.
Ex.B6
04.12.2022 e-Mail sent by Complainant to the Bank.
Ex.B7
08.12.2022 e-Mail sent by Bank to the Builder asking them to reply.
Ex.B8
14.12.2022 e-Mail sent by Bank to the Complainant.
Ex.B9
10.01.2023 e-Mail sent by Complainant to the Bank.
Ex.B10 18.01.2023 e-Mail sent by the Builder to the Complainant.
Ex.B11 10.10.2022 e-Mail sent by the Builder to the Complainant to clear the
outstanding amount.
Ex.B12 21.10.2022 e-Mail sent by Respondent to the Complainant to clear the
outstanding amount.
Ex.B13 11.11.2022 e-Mail sent by the Builder/Respondent to the Complainant.
Ex.B14 18.01.2023 e-Mail sent by Respondent to the Complainant.
Ex.B15 Nil
Colour photos (16) along with one (1) CD.
Ex.B16 14.10.2023 Receipt for Rs.560/- passed by Vijaya Sai Digital Studio,
Madhapur, Hyderabad.
Ex.B17 14.10.2023 Receipt for Rs.400/- passed by South Print & Xerox shop,
Madhapur, Hyderabad.
Ex.B18 01.11.2023 Copy of orders passed by the Authority, TS RERA in Complaint
No.715 of 2022.
Ex.B19 22.08.2023 Copy of legal notice got issued by the Complainant to the
Respondent.
Ex.B20 15.09.2023 Photocopy of Postal receipt for sending reply notice to the
Complainant. (Marked after comparing with original receipt.)
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15.09.2023 Photocopy of Notice sent by Respondent to the Complainant.
16.09.2023 Photocopy of un-served postal cover with acknowledgment
addressed to the Complainant sent by the Respondent
(marked after comparing with original Postal cover with
acknowledgment)
Sd/ADJUDICATING OFFICER,
TS RERA: HYDERABAD.

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