Order Complaint No. 141 of 2024

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Complaint No. 141 of 2024
Dated: 29th July 2025
Quorum:

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

Kalvala Suman
(H No: 3-C/16, PJS Colony Chowdary guda,
Ghatkesar medchal, Malkagiri-500039)

… Complainant
Versus
M/s. Jayathri Infrastructure India Pvt Ltd
(Rep Kakarla Srinivas, Plot no. 140,141,
Eminent plaza, KPHB Colony, Kukatpally, Hyderabad)

… Respondent

The present matter filed by the Complainant herein came up for final hearing on
23.07.2025 before this Authority wherein the Complainant appeared in person. Despite service
of notice, the Respondent failed to appear, and as such, was set ex parte vide order dated
23.07.2025, and after hearing the Complainant, 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 “RE (R&D) Act”)
read with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules, 2017
(hereinafter referred to as the “TG RE(R&D) Rules”) seeking appropriate relief(s) against the
Respondent.
A. Brief facts of the case
3.

The Complainant submitted that, as per the MOU dated 26.01.2022, they paid an amount

of Rs. 11,25,000/- to the Respondent as a total sale consideration for a purchase of commercial
space in the project of Western Galaxy, total 250 sft, office no: 20/F, in 2nd floor having built
up area 1,00,000 square feet together with an undivided share of land admeasuring 4 square
yards (out of Ac. 4 Acres) in survey no. 36/20, situated at Gopanpally village, Serillingampally
Mandal, under GHMC, Serillingampally Circle, Ranga Reddy District.

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The Complainant has also submitted that, in furtherance of the said purchase transaction,

it was mutually agreed and accepted that the total sale consideration for the said Commercial
Space is ₹11,25,000/- (Rupees Eleven Lakh Twenty-Five Thousand only). The said amount
was paid to the Respondent in the following manner: ₹2,50,000/- through Cheque No. 580023
drawn on CTT Bank dated 14.08.2021; ₹3,25,000/- through Online Transfer Ref. No.
243827900 via Axis Bank dated 30.08.2021; and ₹5,50,000/- through Online Transfer Ref. No.
266168914 via Axis Bank dated 28.11.2021.
5.

The Complainant further submits that, as per the Memorandum of Understanding (MOU),

The Respondent assured the Complainant that the fully constructed property would be handed
over by December 2024. In case of any delay beyond that date, the Respondent shall pay ₹75
per sft per month as delay compensation until possession is delivered. After possession, the
Respondent shall also pay ₹100 per sft per month as rent, regardless of tenant occupancy, with
a 5% yearly increase for 20 years. Upon receipt of full payment, the Respondent shall register
a plot as collateral in the Complainant’s name at the Complainant’s cost, to be returned post
handover of the office space at the Respondent’s expense. Rent payments shall be made on the
10th of every month after December 2024.
B. Relief Sought:
6. Complainant prays for the following relief:
a. Refund of investment amount with interest.
C. Points for Consideration:
I. Whether the Respondent has violated section 3 of the Real Estate (Regulation and
Development) Act, 2016?
II. Whether the Complainant is entitled to the relief sought?
D. Observations of the Authority:
Point I:
7.

This Authority notes that over 20 similar complaints have been filed against the same

Respondent concerning the same project “Western Galaxy”. In the order dated 12.08.2024 in
Complaint No. 1037/2023 and batch, it was observed that the Respondent’s counsel submitted
that due to non-compliance with the Agreement of Sale entered into with Sri M. Laxmi Kanthai
and Sri V. Gowrith on 25.03.2021, a portion of the project land is under litigation before the
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Further, this Authority has previously imposed a penalty of Rs. 36,70,000/- for

contravening Section 3 of the RE(R&D) Act, 2016 on the Respondent in Complaint No. 1037
of 2023 & batch matters, dated 12.08.2024. Since the penalty has already been imposed in the
aforementioned order in respect of the same project, this Authority does not find it necessary
to impose an additional penalty under Section 3 of the RE (R&D) Act. Therefore, point I is
answered accordingly.
Point II:
9. The Complainant seeks a refund of the amount paid by him. The Respondent has failed to
fulfil its contractual obligations. Section 18(1) of the RE (R&D) Act, 2016 provides that if a
promoter fails to complete or is unable to give possession of an apartment or commercial space
as per the terms of the agreement, the allottee has an unqualified right to seek a refund of the
paid amount along with interest.
10. The provision for refund with interest applies when the promoter fails to complete the
project and the allottee wishes to withdraw. The allottee is entitled to interest to safeguard his
interests if the promoter fails to perform his obligations and is unable to hand over possession.
11. Attention is drawn to the decision of the Hon'ble Supreme Court of India in Civil Appeal
Nos. 3581-359 of 2022, Civil Appeal Diary No. 9796/2019, M/s Imperia Structures Limited
vs. Anil Patni & Others, wherein it was held:
"In terms of Section 18 of the RERA Act, if a promoter fails to
complete or is unable to give possession of an apartment by the
date specified in the agreement, the promoter would be liable,
on demand, to return the amount received in respect of that
apartment if the allottee wishes to withdraw from the project.
Such a right of the allottee is 'without prejudice to any other
remedy available to him'. This right is unqualified, and if
availed, the deposited money must be refunded with interest as
prescribed. The proviso to Section 18(1) contemplates that if
the allottee does not intend to withdraw from the project, they

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12.

Similarly, in Civil Appeal Nos. 6745-6749 of 2021, M/s Newtech Promoters and

Developers Private Limited vs. State of UP & Others, the Hon’ble Supreme Court observed:
"Section 18(1) of the Act spells out the consequences if the
promoter fails to complete or is unable to give possession of
a 9 of 10 apartment, plot, or building in terms of the
agreement for sale. The allottee/home buyer holds an
unqualified right to seek a refund of the amount with interest
as prescribed."

13. Based on the material available on record, the averments made by the Complainant, and
the history of the Respondent’s violations, it is evident that the Respondent has kept several
complainants on hold for years by making false assurances regarding the registration of
commercial spaces in his names. It is pertinent to note that M/s Jayathri Infrastructures has
consistently violated the Act by misleading the public in multiple projects, thereby
demonstrating mala fide intent.
14. Accordingly, considering the aforementioned case laws and the provision of Section 18 of
the RE(R&D) Act, this Authority is of the opinion that the Complainant, having invested a
substantial sum in anticipation of acquiring the allotted commercial space, has been wrongfully
deprived of his rights due to the Respondent’s absolute failure to execute the project.
Consequently, the Complainant is entitled to the relief sought, which includes a full refund of
the amount paid along with applicable interest.
15.

The said interest shall be paid in accordance with Rule 15 of the TG RE (R&D) Rules,

2017 i.e. Current Highest marginal cost of State Bank of India plus 2% which cumulatively
amounts to 9.0% + 2% that is 11.0% per annum, calculated from the date of the Memorandum
of Understanding (MOU) entered into with the Complainant until the date of actual realization.
E. Directions of the Authority:
16.

In light of the findings of the Authority as recorded above, the following directions are

issued under Section 37 of the RE(R&D) Act to ensure compliance with the obligations
imposed upon the promoter as per the functions entrusted to the Authority under Section 34(f)
of the RE(R&D) Act:

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In the view of the above findings and directions, the present complaint stands disposed

of. The parties shall bear his own costs. The parties are hereby informed that failure to comply
with this Order shall attract Section 63 of the RE (R&D) Act, 2016.

Sd/-

Sd/-

Sd/-

Sri. K. Srinivasa Rao,
Hon’ble Member

Sri. Laxmi Naryana Jannu,
Hon’ble Member

Dr. N. Satyanarayana, IAS (Retd.),
Hon’ble Chairperson

TG RERA

TG RERA

TG RERA

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