Interim Order Complaint No. 520 Of 2024

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.520 OF 2024
4th Day of April, 2024
Corum:

Dr. N. Satyanarayana, IAS (Retd.), Hon’ble Chairperson
Sri K. Srinivasa Rao, Hon’ble Member
Sri Laxmi Narayana Jannu, Hon’ble Member

Sri Sharath Chandupatla

…Complainant

Versus

M/s Buildox Private Limited

…Respondents

The present matter filed by the Complainant herein came up for hearing on
04.04.2024 before this Authority in the presence of the Senior Counsel for
Complainant, Sri D. Srinivas and Counsel for Respondent, Sri Ayush and upon
hearing the arguments, this Authority passes the following INTERIM ORDER:
2.

The present Complaint has been filed under Section 31 of the Real Estate

(Regulation and Development) Act, 2016 (hereinafter referred to as the “Act”) read
with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules,
2017 (hereinafter referred to as the “Rules”) requesting interim directions to:
a. Appoint an advocate commissioner to conduct an inquiry into the number of
sales by the Respondent, amounts received in this regard and collect other
information to ascertain the extent of this fraud;
b. Call for information of the all the bank account statements of Respondent, its
group companies and entities, more particularly A/c Number account No.

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038205005677 IFSC Code: ICIC0000382; receipts issued by the Respondent
and other relevant documents necessary for adjudication of this complaint;
c. Refrain the Respondent from marketing for sale of flats in the project "The
Continent" at Hafeezpet/ Kondapur; and appoint an advocate commissioner to
appropriate action against the Respondents.
3.

The Senior Counsel for the Complainant, Sri D. Srinivas submitted that the

Respondent has violated Sections 3 and 4 of the Act, 2016 by not registering the
Project situated at Survey No.80 of Hafeezpet, Telangana with this Authority and
advertising the same on public media such as Facebook and WhatsApp. the
Complainant further alleged that the Respondent has collected huge amounts of
monies from innocent homebuyers in the name of this Project to which the
Respondent does not have title nor does he have any agreement from the original
landowners. He added that, in fact, the land is in “prohibited category” and the
matter in relation to the said land is pending adjudication before the Hon’ble
Supreme Court.
3.

In view of the above, the Senior Counsel for the Complainant submitted that

the Respondent is proceeding for sales of the flats in the Project without having
legal title or valid DAGPA or any such legally valid agreement and thereby collecting
huge amounts of funds duping innocent homebuyers. He added that numerous
potential innocent homebuyers are likely to be affected and grave financial losses
may be caused to them if appropriate action against the Respondent is not taken.
Therefore, the Complainant prayed to grant the interim directions as sought for.
4.

Per contra, the Counsel for the Respondent, filed Vakalathnama along with a

memo submitting that the Respondent is actively involved in election campaigning
and therefore sought two (2) months’ time to file a detailed reply to all the

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allegations and that no interim directions be granted without hearing the
Respondent.
5.

This Authority has considered the averments of the Complainant and the

Respondent and observes that there is force in the arguments of the Complainant
and balance of convenience lies in favour of the Complainant and no harm is
attributed to the Respondent if the interim relief as prayed for is granted.
Considering the alleged violation of Section 3, 4 and 11(2), this Authority, in the
interest of the rights, interests and welfare of the innocent homebuyer, while
exercising its powers under Section 36 and 37 of the Act, 2016, deems it fit to
direct the Respondent as follows:
a. Respondent is directed to submit the bank account statements of
Respondent, its group companies and entities, more particularly A/c
Number account No. 038205005677 IFSC Code: ICIC0000382 within 7
(seven) days with a copy supplied to the Complainant; and
b. The Respondent is restrained from marketing/advertising/selling or any
such act in violation of the provisions of this Act in the proposed Project
situated at Hafeezpet and deactivate the Facebook advertisement till the final
disposal of this matter.
6.

Should the Respondent fail to comply with the directions as mentioned

above, appropriate action under Section 63 will be initiated against the
Respondent. The matter is listed on 25.04.2024 for counter and hearing.

Sd/Sri K. Srinivasa Rao,
Hon'ble Member,
TS RERA

Sd/Sri Laxmi Narayana Jannu,
Hon'ble Member,
TS RERA

Sd/Dr. N. Satyanarayana, IAS (Retd.),
Hon'ble Chairperson,
TS RERA

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