Order Complaint No. 103 of 2024

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.103 OF 2024
30th Day of October 2024
Corum:

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

Order (Sri K. Srinivasa Rao, Hon’ble Member):
Smt. G. Swetha

…Complainant
Versus

M/s Sensation Infracon Private Limited
Represented by its Authorised Signatory,
Mr. C. Vishnu Vardhan Rao

…Respondent

The present matter filed by the Complainant herein came up for hearing on
31.07.2024 and 27.08.2024 before this Authority in the presence of Complainant in
person, and Authorized Representatives of Respondent and after hearing the
arguments, this Authority passes the following order:

2.

The present Complaint has been filed by the Complainant under Section 31

of the Real Estate (Regulation & Development) Act, 2016 read with Rule (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”) seeking
appropriate relief against the Respondent.

Brief facts on behalf of the Complainant
3.

It was submitted that the Respondent executed Agreement of Sale dated

23.01.2020 towards purchase of Unit No.135 of 100 sq.ft. commercial space in
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Sensation Fortune Bhoomika Mall & Multiplex and the Complainant paid
Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two Thousand Only). Receipts were issued
by the Respondent in this regard and the same have been filed by the Complainant.
It was further submitted that the Respondent has not started construction till date
and failed to complete the project in time. As the Complainant lost confidence in the
Respondent, she seeks to withdraw from the project and prayed to direct the
Respondent to return Rs.13,00,000/- (Rupees Thirteen Lakhs Only) with interest
from 23.01.2020 i.e., date of Agreement of Sale.

Reply on behalf of the Respondent:
4.

Respondent filed Reply on 01.08.2024 submitting that the Complainant had

booked one unit bearing number- 135 admeasuring 100 sq. feet in the project
"SENSATION BHOOMIKA MALL AND MULTIPLEX" and had paid an amount of
Rs.6,72,000/- towards sale consideration and the respondent had also issued
Agreement of Sale dated 23-01-2020 in favour of Complainant. That due to COVID
and change in the operators for the multiplex and change in their specifications, the
project could not be completed in time. However, currently, nearly 80 to 100 people
are working on the project daily and the operator had fixed its specifications and
work is going on.

5.

It was further submitted that, the Respondent is ready to register the

Complainant unit in her favour, on or before 31.03.2025, subject to payment of
stamp duty, registration charges and document handling charges by the
Complainant herein. That the Respondent is paying rent for the said space monthly
and has also paid the same to the purchaser i.e., Complainant herein during COVID
period and in lock down period also. The payments are up to date with no pendency's
or dues.

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6.

That as the RERA time for the project is completed, the Respondent herein

had applied for an extension of time for the said project with this Authority and paid
the required charges of Rs.77,132.75/- (Rupees Seventy-Seven Thousand One
Hundred and Thirty-Two and Seventy-Five Paise Only) dated 05.07.2024. The
extension of time is subject to approval by the Authority.

Observations and directions of the Authority:
7.

The matter was called for hearing, wherein the Complainant appeared and

reiterated the contents of her Complaint. When the Authority questioned as to how
the Complainant is seeking refund of Rs.13,00,000/- (Rupees Thirteen Lakhs Only)
whereas the amount paid, as mentioned on the Agreement of Sale and the receipts
thereof is Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two Thousand Only) only. To
which, the Complainant submitted that the remaining amounts were paid in cash
and that the Respondent did not issue any receipt to the same.

8.

The Authorized Representative of the Respondent submitted specifically in

their Reply that an amount of Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two
Thousand Only) was duly received from the Complainant but did not admit to
receiving any further amounts. It was also submitted by the Respondent that he
seeks 6 (six) months’ time to refund the amounts paid by the Complainant. Further,
that rent is being paid by the Respondents to the Complainant regularly, whereas
the Complainant refuted the same saying, last amount for rent was received only in
March 2024.

9.

After hearing, the Authority did not agree with the Respondent and directed

him to seek instructions to complete the refund within 2 months and as the

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remaining amounts other than Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two
Thousand Only) had no receipts, was to be settled amongst the parties. During the
hearing on 27.08.2024, the Respondent agreed to refund the amount within a period
of 2 months.

10.

This Authority, after hearing the contentions of both the parties and after

considering the material filed on record, deems it fit, vide its powers under Section
37 read with Section 18, to direct the Respondent to refund an amount of
Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two Thousand Only) along with interest.

11.

While the record was being perused, it has also come to the notice of this

Authority that the Agreement of Sale was admittedly issued on 23.01.2020. Whereas
this Authority granted registration to the Respondent vide Regn. No.P02400001798

on 20.03.2020 i.e., subsequent to executing the Agreement of Sale with the
Complainant. Section 3 of the Act, 2016 clearly stipulates that no promoter shall
advertise, market, book, sell or offer for sale, or invite persons to purchase in any
manner any plot, apartment or building, as the case may be, in any real estate project
or part of it, in any planning area, without registering the real estate project with the
Real Estate Regulatory Authority. Therefore, Respondent was admittedly, in violation
of the said provision by executing Agreement of Sale with the Complainant prior to
obtaining RERA registration.

12.

In light of the above discussion, this Authority deems it appropriate, vide its

powers under Sections 37 and 38 read with Sections 18 and 59(1) to issue the
following directions:
a. As agreed by the Respondent during the course of hearing, the Respondent is
hereby directed to refund the total amount paid by the Complainant being

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Rs.6,72,000/- (Rupees Six Lakhs Seventy-Two Thousand Only) along with
interest at the rate of 10.85% in accordance with Rule 15 of the Rules, 2017
from the date of the Agreement of Sale i.e., 23.01.2020; and
b. For violation of Section 3, i.e., for executing the Agreement of Sale dated
23.01.2020 with the Complainant without registering the Project with this
Authority, this Authority deems it fit to impose penalty of Rs. 20,71,575/(Rupees Twenty Lakhs Seventy-One Thousand Five Hundred and Seventy-Five
Only) payable within 30 days in favour of TG RERA FUNDS through Demand
Draft or online payment to A/c No.50100595798191, HDFC Bank, IFSC Code:
HDFC0007036, failing which appropriate action under Section 63 of the Act,
2016 shall be initiated against the Respondent.

13.

If aggrieved by this Order, the parties may approach the Telangana Real Estate

Appellate Tribunal within 60 days from the date of receipt of this Order.

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

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

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

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