Order Complaint No. 709 of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.709 OF 2022
19th 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

Sri Banda Rajasekhar

…Complainant
Versus

M/s Sai Surya Developers

…Respondent

The present matter filed by the Complainant herein came up for hearing on
16.08.2023, 21.09.2023, 04.10.2023 & 12.10.2023 before this Authority in the
presence of Sri Banda Rajasekhar, the Complainant, and Sri Satish Chandra
Gupta, Sri Jwala Prasad and Ms. Priyadarshini, Advocates for the Respondent 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 to take appropriate action
against the Respondent Builder.

A. Brief facts of the case:
3.

The Complainant, approached Mr. K. Satish Chandra Guptha, Managing

Director of Sai Surya Developers, for the purchase of residential Plot bearing
No.335 in venture Gurustan-2, situated at Nandigama Village, Patancheru Mandal,

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Sangareddy District registered as “Jaagruthis Green Fields” vide Registration
No.P01100002767 before this Authority by M/s Jaagruthi Housing and Infra Pvt.
Ltd.
4.

On 30.09.2021, the Complainant paid a sum of Rs. 8 lakhs to the

Respondent Builder by way of Account-to-Account RTGS/IMPS/NEFT transfer
(Bank: ICICI, Transaction Reference ID: 0219261040), and on the same day
Respondent Builder promised to execute an Agreement of Sale in favour of the
Complainant but has not given the same till date. He had given an assurance that,
he will register the regular sale deed within the next week in favour of the
Complainant, but failed to do so. I paid the balance of sale consideration of Rs. 10
Lakhs

on

07.10.2021

&

Rs.18.9

Lakhs

on

11.10.2021

by

way

of

RTGS/IMPS/NEFT.
5.

Upon full payment of the entire sale consideration, the Complainant made

repeated requests to the Respondent Builder for the registration of a standard Sale
Deed. However, the Respondent Builder consistently failed to fulfill this request,
citing various pretexts. Several months later, the Respondent Builder did promise
to register plot number 329 of Gurusthan-2, Nandigama, as a substitute for plot
335 of Gurusthan – 2, but once again, this registration did not materialize.
Subsequently, the Respondent Builder also proposed registering another plot in
Choutuppal in the Complainant's name, but this, too, was left unfulfilled.
Therefore, the Complainant requested this Authority to take appropriate action
against the Respondent.

B. Reply on behalf of the Respondent:
6.

Accordingly, vide Notice dated 12.01.2023, 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. And

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vide Reply dated 09.02.2023, the Respondent Builder, while denying all the
averments in the Complaint, submitted that the present complaint is without
seeking any specific relief, which clearly reveals the mala fide intention of the
Complaint in terrorizing the Respondent Builder in order to gain wrongfully without
following the due process of law. He further submitted that, the Complainant
mentioned that the value of the Plot is Rs. 36,90,000/- which is incorrect and only
with a view to get a property for a cheaper price contrary to the market demand.
Payments are subject to strict proof and the said payments as mentioned are the
part payment, instead of paying full consideration. Therefore, he requested this
Authority to dismiss the Complaint in the interest of justice.

7.

Thereafter, another Notice dated 16.09.2023 was issued to the Respondent

to appear before this Authority and to submit its Reply. And vide Reply dated
12.10.2023, the Respondent submitted that both the Complainant and Respondent
have had an amicable discussion, and the matter is being settled out of court
amicably. Further, the Respondent repaid substantial amount, total sum of
Rs.12,00,000/- (Rupees Twelve Lakhs Only) and is arranging to repay the balance
amount within 2 months’ time. The said agreement of sale stands cancelled. As the
refund is in process and the part refund is already paid to the complainant and
acknowledged by the complainant and provided a list of the payment details made
to the Complainant. In conclusion, he requested this Authority to either dismiss
the complaint as the matter is being amicably settled out of court or to grant 2
months' time to the respondent for repayment of the balance amount to the
Complainant.
C. Hearing Conducted:
8.

The matter was heard finally on 12.10.2023, wherein Sri Satish Chandra

Gupta, Managing Director of Respondent Builder along with his advocates

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Sri Jwala Prasad and Ms. Priyadarshini appeared and acknowledged the receipt of
the amounts from the Complainant. They submitted an undertaking that an
amount of Rs.12,00,000/- (Rupees Twelve Lakhs Only) has been paid to the
Complainant and the same was duly acknowledged by the Complainant. Remaining
amount of Rs.24,90,000/- (Rupees Twenty-Four Lakhs and Ninety Thousand Only)
shall be repaid to the Complainant within a period of two months i.e., on or before
12.12.2023. This Undertaking is taken on record.

D. Directions of the Authority:
9.

In consideration of the facts and circumstances of the present case, the

Respondent has admitted that there is delay in re-payment of amounts to the
Complainant and that they failed to register the allotted plot in favour of the
Complainant in time.

10.

However, it is pertinent to note here that the Respondent Builder has posed

“Gurusthan – 2” as the Project, however the RERA Registration for the same is seen
as “Jaagruthi Green Fields” registered by one M/s Jaagruthi Housing and Infra Pvt.
Ltd. and not M/s Surya Developers. This can be seen from the unregistered and
unsigned Sale Deed filed by the Complainant as well as from the brochure. This
shows that the Respondent Builder has misrepresented the Project titled “Jaagruthi
Green Fields” to be “Gurusthan – 2” and has received monies for the said Project
without any proper documentation with an intent to deceive its customers. This act
on part of the Respondent is deprecated and therefore, for misrepresentation, this
Authority, while exercising its powers under Section 60, imposes a penalty of Rs.
Rs.11,33,000/- (Rupees Eleven Lakhs Thirty-Three Thousand and Five Hundred
Only) on the Respondent payable within 30 days of the receipt of this Order, as
otherwise action under Section 63 of the Act, 2016 shall be invoked.

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11.

Therefore, this Authority deems it fit to direct the Respondent repay the

remaining amounts of Rs.24,90,000/- (Twenty-Four Lakhs and Ninety Thousand
Only) along with an interest at the rate of 10.65% (8.65% + 2%) per annum in
accordance with Rule 15 of the Rules, 2017 and the penalty amount of
Rs.11,33,000/- (Rupees Eleven Lakhs Thirty-Three Thousand and Five Hundred
Only) as mentioned above on or before 30.01.2024 failing which the Respondent
shall be liable to a penalty for every day during which such default continues,
which may cumulatively extend up to five per cent., of the estimated cost
of the real estate project as determined by the Authority. The Respondent Builder
is also directed to submit a compliance report after repaying the said amount with
interest to this Authority on or before 10.02.2024.

12.

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 as mentioned above.

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)
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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