Order Complaint No. 119 OF 2024

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.119 OF 2024
31st Day of December 2024
Quorum:

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

Ms. D. Shruti and D. Shravya

…Complainants
Versus

M/s R Homes
Represented through its Authorised Representatives,
Sri Bhaskar Ram Gupta & Smt. Sudharani

…Respondent

The present matter filed by the Complainant herein came up for hearing on
27.08.2024, 18.09.2024, 03.10.2024, 29.10.2024 and 12.11.2024 before this
Authority in the presence of Complainants in person and Counsel for Respondent,
Sri G. N. Satyanarayana and Sri K. Madhukar Yadav 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 (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(s) against the Respondent.

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Brief facts of the case:
3.

The Complainant categorically submitted that on the promise of delivering

constructed flats within 2 and a half years by the Respondent, the Complainants
paid Rs.4,00,000/- (Rupees Four Lakhs Only) as advance bearing receipt No.213 and
214 dated 02.11.2020 for the purchase of flat site in Yamnampet, Ghatkesar. After
three and a half years, the Respondent failed to deliver the constructed flats and even
failed to provide construction permission.

4.

On approaching the Respondent to return the advance money paid to him by

the Complainants, the Respondent returned on only Rs.2,00,000/- (Rupees Two
Lakhs Only) and remaining balance is pending.

5.

Aggrieved by which, the Complainant sought for refund of advance payment

of Rs.2,00,000/- (Rupees Two Lakhs Only) along with interest of 18% per annum
from the date of payment of advance amount.

Counter on behalf of the Respondent:
6.

On 29.10.2024, the Respondent filed its counter and submitted that the

Complainants approached with Respondent and came to compromise and received
an amount of Rs. 2,00,000/- (Rupees Two Lakhs only) towards full and final
settlement and acknowledged with receipt and undertaking on 25.05.2024 and
stated that they have received an amount of Rs.2,00,000/- (Rupees Two Lakhs only)
towards full and final settlement against Rs.4,00,000/- (Rupees Four Lakhs Only).
He also filed a copy of the receipt in support of this contention.

7.

It was also submitted that the Complainants handed over all original receipts

to the Respondents at the time of receiving the full and final settlement of amount of

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Rs. 2,00,000/- (Rupees Two Lakhs only) against of Rs.4,00,000/- (Rupees Four
Lakhs Only) for foregoing the balance amount. It was further submitted that
Complainants have intentionally filed the above complaint before this Authority after
receiving the full and final settlement which is nothing but cheating. Therefore, it
was prayed to dismiss the present complaint.

Observation by the Authority:
8.

This Authority has perused the documents filed by both parties and heard

their contentions. After due verification of the documents, this Authority has learnt
that the Project in question is Jai Vasavi’s Bliss Heights which has been registered
vide Regn. No.P02200007023 having validity till 17.03.2029.

9.

The Complainant submits that back in the year 2020, before the Respondent

applied for RERA registration, the Respondent offered flat for sale against which, the
Respondent collected Rs.4,00,000/- (Rupees Four Lakhs Only) and issued Receipt
Nos.213 and 214 against the said transaction dated 02.11.2020. The Respondent on
the other hand, submitted that Complainants approached Respondent and entered
in to compromise and received an amount of Rs. 2,00,000/- (Rupees Two Lakhs only)
towards full and final settlement and acknowledged with receipt and undertaking on
25.05.2024. Upon perusal of the Undertaking dated 25.05.2024, one Sri
Bhikshapati, on behalf of the Complainants, signed a letter which stated that due to
some reasons, one Sri Bhikshapati representing the Complainants herein is
withdrawing from the purchase of flats from the Respondent. That as per company
norms, after deducting 50% amount remaining amount of Rs.2,00,000/- (Rupees
Two Lakhs Only) has been received by him which is full and final settlement.

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10.

It is bizarre to note that the Respondent, admittedly, received money towards

purchase of flats as per its own admission in its counter as well as Undertaking dated
25.05.2024 in the year 2020, whereas the RERA registration granted to the
Respondent was in 23.09.2023. This act on part of the Respondent to have accepted
amounts for sale of flat is in clear violation of Sections 3 and 4 and therefore, this
Authority is of the considered view that the Respondent is liable for penalty.

11.

Now coming to relief of the Complainants which is refund of remaining

Rs.2,00,000/- (Rupees Two Lakhs Only), this Authority deems it fit to direct the
Respondent to refund the entire amount of Rs.2,00,000/- (Rupees Two Lakhs Only)
to the Complainant as at the time of executing the transaction of sale of flats, the
Respondent did not obtain any RERA registration. Ideally, if we go by the law, the
Complainant withdrew from the project for no fault of the promoter, therefore,
promoter has the right to retain the booking amount. However, there is no clear
details provided by the Complainants in this regard. There is no allotment letter, no
mention of any flat numbers, no mention of any other detail in relation to the project
except the receipts filed. As per Section 19, it is also the bounded obligation of the
Complainant to have verified the details of the flats before entering into any
transaction in relation to sale of flats. In such circumstances, this Authority can go
to the extent of saying that it is suspicious as to whether the amounts have been
given towards purchase of flats or for such other purpose which may not fall within
the jurisdiction of this Authority.

12.

Keeping in view the submissions made by the Respondent, that the amounts

were received towards purchase of flats, this Authority opines that Complainant are
entitled to full refund of amounts as Respondent was not legally entitled to offer for
sale any flats without first registering the project with this Authority.

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13.

Therefore, keeping in mind the peculiar facts and circumstances of the present

case and vide its powers under Sections 37 and 38, this Authority directs the
Respondent as under:
i.

Respondent has admittedly, and apparently violated Sections 3 and 4 by
offering for sale, flats in the project without obtaining RERA registration
and for the same, the Respondent is liable to penalty under Sections 59
& 60 respectively, of Rs.8,30,111/- (Rupees Eight Lakhs Thirty Thousand
One Hundred and Eleven Only) payable within thirty (30) days in favour
of TG RERA FUND through a Demand Draft or online payment to A/c No.
50100595798191, HDFC Bank, IFSC Code: HDFC0007036;

ii.

The Respondent is directed to refund the entire amount of Rs.2,00,000/(Rupees Two Lakhs Only) within 30 (thirty) days, failing which the
Respondent shall attract penalty in accordance with Section 63 of the Act,
2016.

14.

As a result, the complaint is disposed of.

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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