Order Complaint No. 255 Of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.255 OF 2023
28th Day of March, 2024
Corum:

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

Sri V.Vamsi Krishna

…Complainant

Versus
Sri Nadipilli Laxmi Maohar Rao
…Respondent
The present matter filed by the Complainant herein came up for final
hearing on 15.02.2024 before this Authority in the presence of Complainant
and Respondent present in person and upon hearing the arguments of the
party, this Authority passes the following 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
“RE(R&D) Act”) read with Rule 34(1) of the Telangana Real Estate (Regulation
and Development) Rules, 2017 (hereinafter referred to as the “Rules”) seeking
directions from this Authority to take action against the Respondent.

A. Brief facts on behalf of the complainant:
3.

The Complainant alleges that the Respondents, who are involved in the

real estate development business, misrepresented the carpet area of the
property in question. According to the Complainant, the Respondents stated
that the carpet area of the property was 1020 square feet (Sft), whereas, in
reality, it was only 732 Sft. This alleged misrepresentation is a central issue in
the case and forms the basis of the complaint.
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4.

The Complainant further contends that, prior to the execution of the

sale agreement, the Respondents collected an advance payment of Rs.
2,00,000/- from the Complainant. This advance payment is a substantial
sum, and the Complainant argues that it was taken under questionable
circumstances.

B. Relief Sought:
5.

To direct the Respondent to refund the advance amount of Rs.

2,00,000/- and invoke section 13(1) of the Real Estate (Regulation and
Development) Act, 2016 (RE(R&D) Act) and seeks the penalization of the
Respondents in accordance with the provisions of the said Act.

C. Hearing Conducted:
6.

A hearing was scheduled on the 4th of October 2023, during which no

representative appeared on behalf of either party.
7.

Subsequently, the case was called on the 2nd of November 2023,

wherein the complainant was personally present. The complainant was
instructed to serve the summons notice for the next hearing date to the
Respondent and to submit the acknowledgment to the Authority.
8.

On the 21st of December 2023, both parties appeared. The Respondent

informed the Authority that the combined carpet area and common area
amounted to 1020 sft. Additionally, it was asserted that before the flat
purchase, the complainants were shown the property, and only after thorough
discussion was the token amount collected. However the Respondent agreed
to repay the entire amount to the Complainant.
9.

The Respondent requested a 2-month period to repay the amount, and

the bench directed the Respondent to provide a Demand Draft of the entire
amount paid by the complainant before the Authority on 30.01.2024.On
30.01.2024, the Respondent requested some more time to repay the amount.

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D. Observations by the Authority:
10.

During the hearing, the complainant informed the Authority that during

the visit to the office of the Respondent, the concerned party did not disclose
the specific details of the selected flat, such as carpet area, built-up area, or
super built-up area. Consequently, the complainant was led to believe that
the total built-up area mentioned in the brochure referred to the carpet area.
However, upon visiting the site, she misinterpreted the built-up area as carpet
area, and neither Respondent has not separately indicated the carpet area in
the brochure.
11.

Given that this discrepancy was unsatisfactory to her, the complainant

opted not to proceed with the purchase of the flat. Subsequently, she sought
relief from the Telangana State Real Estate Regulatory Authority (TS RERA) to
reclaim the amount paid to the builder.
12.

Upon careful consideration, the Authority has determined that both

parties failed to reach a mutual understanding regarding the area, and the
Respondent neglected to provide adequate explanation regarding the details of
the subject unit's area. In light of the need to protect the interests of the
complainant, the Authority has decided to order the Respondent to refund the
amount paid by the complainant.

E. Directions of the Authority:
11.

Hence, the Authority hereby issues this order and provides the following

direction under Section 37 of the RE(R&D) Act 2016 to ensure compliance
with obligations imposed upon the promoter as per the functions entrusted to
the Authority under Section 34(f) of the RE(R&D) Act of 2016:
I.

The Respondent is directed to refund the entire amount of R.2,
00,000/- to the complainant within 15 days from the date of the receipt
of this order.

12. In the lieu thereof, the present complaint stands disposed of.

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13.

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

Appellate Tribunal (vide G.O.Ms.No.8, Dt.11-01-2018, the Telangana State
Value Added Tax Appellate Tribunal has been designated as TS Real Estate
Appellate Tribunal to manage the affairs under the Act till the regular
Tribunal is established) as per section 44 of the RE(R&D) Act, 2016.

Sd/-

Sd/-

Sd/-

Sri. K. Srinivas Rao,
Hon’ble Member
TS RERA

Sri. Laxmi NaryanaJannu,
Hon’ble Member
TS RERA

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

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