Order Complaint No. 710 of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.710 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 Balla Suresh

…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 Balla Suresh, 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, in the month of October 2021 approached Sri K Satish

Chandra Gupta, Managing Director of the Respondent Company for purchase of
residential plot bearing No.332 in venture in venture Gurustan-2, Nandigama Village,
Patancheru Mandal, Sangareddy District registered as “Jaagruthis Green Fields” vide

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Registration No.P01100002767 before this Authority by M/s Jaagruthi Housing and
Infra Pvt. Ltd. The Plot value is Rs.36,00,000/- (Rupees Thirty Six Lakhs only).

4.

Further, on 12.10.2021, the Complainant paid a sum of Rs. 18 lakhs to the

Respondent by way of Cheque (Citi Bank Cheque No. 760750), on the same day, the
Respondent executed an Agreement of Sale in favour of the Complainant, and he was
given an assurance that, will register the regular Sale Deed within 30 days. During the
30 days period, the Complainant paid the balance of sale consideration of Rs.10 Lakhs
by way of NEFT/RTGS/IMPS transfer to the Respondent, and Rs.8 lakhs paid by way of
cash, for that, the said Respondent issued a separate receipt. The Complainant paid
entire sale consideration within 30 days and also paid Rs.1,86,000/- as development
and registration charges by way of NEFT/RTGS/IMPS transaction. The Complainant
also filed duly acknowledged receipts of the payments made to the Respondent along
with the Complaint.

5.

After payment of entire sale consideration, the Complainant requested the

Respondent Builder many times, to come forward and register a regular Sale Deed in
my favour. However, he failed to do so. After few months, the Respondent Builder
assured to register plot number 328 of Gurusthan-2, Nandigama as a replacement of
plot 332 of Gurusthan - 2. But he failed to register as well.

6.

The Respondent Builder also proposed to register another plot at Choutuppal in

favour of the Complainant. Upon verification, the Complainant found that Plot No.332
was registered in favour of some other third party. Complainant requested the
Respondent Builder to refund the amounts paid by him or register the other plot,
however there was no response from the Builder. Therefore, the Complainant requested
this Authority to take action against the Respondent and refund his monies.

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B. Reply on behalf of the Respondent:
7.

Accordingly, vide Notice dated 03.10.2023, 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. However, no
response was received.

8.

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.24,50,000/- (Rupees TwentyFour Lakhs Fifty Thousand 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.

9.

He further stated that and only a balance of Rs.13,46,800/- (Rupees Thirteen

Lakhs Forty-Six Thousand and Eight Hundred Only) is pending and the Respondent is
arranging to repay the balance amount within 2 months' time. And thereby 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:
10.

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

Managing Director of Respondent Builder along with his advocates 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.26,50,000/-

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(Rupees Twenty-Six Lakhs and Fifty Thousand Only) has been paid to the Complainant
and the same was duly acknowledged by the Complainant. Remaining amount of
Rs.11,46,800/- (Rupees Eleven Lakhs Firty-Six Thousand and Eight Hundred Only)
shall be repaid to the Complainant within a period of one month i.e., on or before
12.11.2023. This Undertaking is taken on record.

D. Observations and Directions of the Authority:
11.

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, as stipulated under the Agreement of Sale dated 11.09.2021.

12.

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 Agreement of Sale 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, imposed a penalty of Rs.11,33,000/- (Rupees Eleven Lakhs Thirty-Three
Thousand and Five Hundred Only) on the Respondent vide Order dated 19.10.2023 in
a similar connected matter bearing Complaint No.709/2022 titled “Banda Rajasekhar
vs. M/s Sai Surya Developers”.

13.

This Authority also deems it fit to direct the Respondent repay the remaining

amounts of Rs.11,46,800/- (Rupees Eleven Lakhs Forty-Six Thousand and Eight

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Hundred 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.

14.

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.

15.

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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