Order Complaint No. 41 of 2024

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.41 OF 2024
7th October, 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 Rajaseakhar Kosuru
…Complainant
Versus
M/s Manjeera Enterprises LLp rep by Yoguanand Gajjala & Vivekananda
Gajjala
…Respondent
The present matter filed by the Complainant herein came up for final
hearing on 25.07.2024 before this Authority in the presence of Complainant
present in person and none appeared on behalf of Respondent and upon
hearing the arguments of the Complainant, 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.
3.

This project is not registered with TG RERA. A show-cause notice was

issued by this Authority on 12.07.2024, directing the Respondent to explain
within one week from the date of receipt of the notice why action should not
be initiated for violating Section 3(1) of the RE(R&D) Act, 2016. However, the
Respondent has failed to comply.

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4.

The crux of the complaint is that the Complainant had booked an

apartment with the Respondent, Manjeera Enterprises LLP, and paid an
advance of ₹24,00,000/-. Subsequently, the Complainant discovered that the
project lacked necessary sanctions from the relevant authorities. As a result,
the Complainant demanded a refund of the entire amount paid. To date, the
Complainant has received only ₹5, 00,000/- as a partial refund.
5.

Despite repeated requests made by the Complainant to refund the

remaining amount of ₹19, 00,000/-, the Respondent failed to do so. Left with
no option, the Complainant approached this Authority, seeking a refund along
with 14% interest from October 2022.
6.

Upon the registration of the complaint, notices were duly issued to the

Respondent, with proof of service acknowledged. However, despite such
notices, the Respondent failed to appear before the Authority on the dates of
hearing

scheduled

on

12.06.2024,

11.07.2024,

and

25.07.2024.

Consequently, in light of the Respondent's continued non-appearance, the
Authority proceeded to set the Respondent ex parte.
7.

In support of his claim, the Complainant has submitted documents,

including (1) Booking Form, (2) Payment Receipt for ₹19,00,000/-, (3) Emails
exchanged between the Complainant and Respondent, and (4) Bank
Statements.
8.

The Complainant was heard, and based on the averments made; the

following issue arises for consideration:
Point 1. Whether the Complainant is entitled to the relief claimed?
Findings:
9.

The Complainant booked an apartment in the Respondent’s project and

paid ₹24,00,000/- on 18.05.2022. The Respondent did not obtain the
necessary permissions for the project, which came to the Complainant’s
attention only after a significant delay. Upon multiple requests for a refund,

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the Respondent made a partial payment of ₹5,00,000/-, and the balance of
₹19,00,000/- remains unpaid.
10.

Attention is drawn to the decision of Hon’ble Supreme Court of India in

Civil Appeal No(s) 3581-359 2022, Civil Appeal Diary No: 9796/2019 between
M/s Imperia Structures Limited vs. Anil Patni & Ors., it is held as under:
"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 are entitled to
interest for every month of delay until possession. It is upto the
allottee to proceed either under section 18(1) or under proviso to
Section 18(1)………
….The RERA Act thus definetly provides a remedy to an allottee
who wishes to withdraw from the Project or claim return on his
investment.
11.

Therefore, as per section 18(1) of the RE(R&D) Act, the promoter is

liable to return the amount received along with interest and compensation
only of the promoter fails to complete or provide possession of an
apartment/plot.
Similarly, in Hon'ble Supreme Court in Civil Appeal Nos. 6745-6749 of 2021,
M/s Newtech Promoters and Developers Private Limited vs. State of UP &
Others, it was held:
"Section 18(1) of the Act spells out the consequences if the
promoter fails to complete or is unable to give possession of an
apartment, plot, or building in terms of the agreement for sale.
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The allottee/home buyer holds an unqualified right to seek a
refund of the amount with interest as prescribed."
12.

From the Complainant’s submissions, it is evident that a substantial

amount has been paid, and the Respondent, without any legal approvals or
registration, collected funds from the Complainant and made false promises
regarding project completion. The Respondent’s failure to refund the amount
for nearly two years reflects malafide intentions. Moreover, the Respondent
ignored notices and failed to appear before this Authority, indicating a lack of
defence.
13.

Despite several notices being duly served upon the Respondent, he

failed to appear before this Authority and continuously remained absent on all
scheduled dates of hearing. Consequently, the Respondent has not filed any
statement of objections nor furnished documents in support of his defence,
thereby choosing not to contest the matter. In the absence of any resistance
or rebuttal from the Respondent, and upon careful consideration of the claim
of the Complainant, which is substantiated by credible documentary evidence,
this Authority has no alternative but to accept the Complainant's The
Complainant is entitled to the refund with interest.
14.

Therefore, it is incumbent upon the respondent to refund the amount

with interest. The Respondent should pay interest as per Rule 15 of the TG
RE(R&D) Rules, which stipulates the Marginal Cost of Lending Rate (MCLR)
plus 2% interest. The current MCLR of the State Bank is 8.85% plus 2%. The
refund shall include interest at the rate of 10.85% per annum, calculated
from the date of receipt of each payment until the date of repayment.
15.

In view of the above, the point under consideration is answered in the

affirmative.
16.

Accordingly, the Respondent is directed to refund the balance amount

of ₹19, 00,000/- (Rupees Nineteen Lakhs Only) along with interest at the rate
of 10.85% per annum, calculated from the date of receipt of each payment
until the date of repayment. The Respondent is to comply with this order
within 45 days from the date of this order.
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17.

For contravening section 3 & 11 of the RE(R&D) Act, this Authority,

exercising its powers under section 59 of RE(R&D) Act, imposes a penalty on
Respondent Rs.5,66,280/-( Five Lakhs Sixty-Six Thousand Two Hundred and
Eighty Rupees Only) .The amount is payable in favour of TGRERA FUND
through a Demand Draft or online payment to A/c No.50100595798191,
HDFC Bank, IFSC Code: HDFC0007036, within 30 days of the receipt of this
Order by the Respondent/Promoter.
18.

The Respondents are hereby informed that failure to comply with this

Order shall attract Section 63 of the Act.
19.

In the result, the complaint stands disposed of. The parties shall bear

their own costs.
20.

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

Estate Appellate as per Section 44 of the Act, 2016.

Sd/Sri. K. Srinivas Rao,
Hon’ble Member
TG RERA

Sd/Sri. Laxmi NaryanaJannu,
Hon’ble Member
TG RERA

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

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