Order Complaint No. 472 of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.472 OF 2022
30th Day of October, 2023
Corum:

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

1. Smt. Swetha Kanagala
2. Sri Krishna Chand Boyapati

…Complainants
Versus

1. Sri Ramesh Muddana
2. Sri Naveen Mandava

…Respondents

The present matter filed by the Complainant herein came up for hearing on
16.08.2023. 30.08.2023 and 19.09.2023 before this Authority in the presence of
the Complainants in person and the Respondent No.1 in person also appearing for
Respondent No.2, and upon hearing the arguments of both the parties, 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 “Act”) read
with Rule 34(1) of the Telangana Real Estate (Regulation and Development) Rules,
2017 (hereinafter referred to as the “Rules”) requesting appropriate action against
the Respondent Builder.

A. Brief facts of the case:
3.

The Complainants, both software engineers, discovered "Blue Lotus Villas"

situated at Sy. Nos. 03,106,107,122,124, at Patancheru, Sangareddy, Telangana,

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502305, through an advertisement on magicbricks.com. They contacted Mr.
Venkata Naveen Mandava, Respondent No.2, who assured them of HMDA and
RERA approvals and a handover by 30.04.2022. The Complainants paid an
advance of Rs.50,00,000/- (Rupees Fifty Lakhs Only) and agreed to a bank loan for
the remaining Rs.1,10,00,000/- (Rupees One Crore Ten Lakhs Only).

4.

On 09.02.2022, Respondent No.2 pressured them to transfer the amount,

citing a relative's trust. Complainant No.2 entered into an Agreement of Sale on the
said date with the Respondent No.1. Following that, the Complainants, in touch
with Respondent No.2, agreed to register the semi-finished house for financial aid
and applied for a loan, with personal documents handed to Mr. Narendra,
introduced as an ICICI bank representative. Despite doubts, the relationship
manager never clarified.

5.

The said Villa 44 was registered in the name of the Complainants by M/s

Lotus Blue Infra Projects Pvt. Ltd. & M/s Cresent Spaces Pvt. Ltd. represented
through Respondent No.1 in favour of the Complainants vide document No.2881
dated 06.04.2022. Subsequently, upon verification, the Complainants found no
progress during a site visit on 09.04.2022.

6.

Attempts to communicate with Respondent No.1 regarding pending works

and documents yielded no response. The Respondents demanded Rs.4,50,000/(Rupees Four Lakh Fifty Thousand Only) for water, electricity, corpus fund, and
maintenance charges. The Complainants allege fraudulent promises, suppressed
facts, and fabricated documents, causing financial loss and unnecessary interest
payments since 01.04.2022.

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7.

Accordingly, she submitted that a total amount of Rs.1,64,00,000/- (Rupees

One Core Sixty-Four Lakh Only) was paid by the Complainants and the banker to
the Respondents. In lieu thereof, she requested this Authority to direct the
Respondents to pay interest to the Complainants for the amount received by the
Respondents being a total of Rs.1,64,00,000/- (Rupees One Core Sixty-Four Lakh
Only) from the date of agreement 09.02.2022 till the date of possession (Occupancy
certificate). She also sought for penalty to be imposed on the Respondents to the
tune of Ten Lakh Rupees for delay in handover and mental agony.

8.

The Complainants filed reminders in the year 2022 to consider their plea

and filed a representation on 23.08.2023 reiterating the contents of the Complaint,
however sought for fresh prayer and added more respondents as opposed to the
original complaint as mentioned above. However, the same cannot be taken into
consideration in the absence of the Authority’s due approval.

9.

Further, on 19.09.2023, the Complainants filed additional documents

producing FIR copy, Power Supply Application made by the Respondent, TS RERA
Application submitted by the Respondent No.1, Whatsapp Chats between the
Complainants and the Respondent No.2 and Respondent No.1’s wife, Smt.
Sharmila Muddana and email dt. 09.12.2022 issued by ICICI Bank which states
that bank was not involved in the third-party agreement entered between the
Complainants and Sri K Rao. The same are considered however, this Authority
refrains from commenting on the aforementioned matter as it does not fall within
this Authority’s subject matter jurisdiction.

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B. Reply on behalf of the Respondent:
10.

Accordingly, vide Notice dated 17.10.2022, served upon the Respondent, this

Authority directed the Respondent to submit a reply in terms of Rule 34 (1) & (2) of
the Rules, 2017 along with such other information with regard to the Project.
However, no response was received. Therefore, another reminder Notice dated
16.11.2023 was issued to the Respondent directing him to submit a response to
the present Complaint.

11.

Vide Reply dated 30.08.2023, the Respondent No.1 submitted that he has

completed the villa as per the Agreement, pictures of which have been annexed
with his reply. He also added that water connection will be provided by 15.11.2023
and the final project including amenities by February 2024. He obtained RERA
permission on 07.12.2022 valid up until 30.12.2024, vide Registration No.
P01100005442.

12.

He narrates the facts and submits that the Complainants bought Villa 44

through reference of Respondent No.2, who, along with his friends and relatives
bought 8 (eight) villas. Agreement of Sale was done between the Respondent and
the Complainant No.2 for a total sale consideration of Rs.1.6 Crore with witness of
Sri Naveen Mandava and the Complainant No.1. The Respondent received Rs.50
Lakhs as initial payment and remaining amounts from the bank. For eligibility of
loan, the Complainant No.1 was added as co-applicant in the ICICI Bank loan.

13.

For convenience sake, the buyer, bank and the Respondent Builder agreed

to consider the payments of Rs.1.11 crores as a work order, which the bank paid to
the Respondent Builder and Mr. Leela Kutumbarao who was a lender for the
completion of Villa 44 to the Respondent Builder. He submitted that all the

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documentation to the bank was done by the applicants and the bank officials. The
cancelled cheques were given by the Respondent Builder and Mr. Leela
Kutumbarao (lender) along with Aadhar Card on 09.03.2022.

14.

That MOTD of Rs.50,000/- (Rupees Fifty Thousand Only) was paid by the

buyers of the Villa 44 to ICICI Bank on 01.03.2022 for disbursement of loan
amount of Rs.1.10 crores. Further, cheques were printed by the bank on
31.03.2023 and the copies were sent to the buyers i.e., the Complainants by the
bank on 01.04.2022. Subsequently, Villa was registered in favour of the
Complainants. After registration, lawyers from the bank handed over the cheques
in the presence of the Complainants.

C. Observations & Directions of the Authority:
15.

The

parties

appeared

for

hearing

on

16.08.2023.

30.08.2023

and

19.09.2023 and reiterated the contents of their submissions as mentioned above.
During the course of hearing, it was observed that partially few villas has been
completed and as per the Complainant’s agreement also, Villa No.44 is completed
excepting the interior works being under progress. As the interior works are not
part of the Agreement of Sale dated 09.02.2022, this Authority cannot insist on the
same. Resolution of this matter is incumbent upon the Complainants and the
Respondent Builder.

16.

Respondent No.1 is hereby directed to obtain Occupancy Certificate as early

as possible. Essential services such as electricity and water supply to be provided
to the said Villa No.44 without any hindrance.

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17.

The matter is disposed of on the above terms and parties are hereby

informed that non-compliance with the Orders of the Authority shall attract Section
63 of the Act.

18.

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)
within 60 days from the date of receipt of this Order.

Sd/Sri K. Srinivasa Rao, Hon’ble Member
TS RERA
Sd/Sri Laxmi Narayana Jannu, Hon’ble Member
TS RERA

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

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