Order Complaint No. 714 of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.714 OF 2023
22nd January, 2024
Corum:

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

Sri Deepak Darisi
Versus
M/s Manaswini Infra Developers
Panchangam Santosh Kumar
Allam Sunil Reddy
Pothala Paradesi Naidu
M/s Nature Homes Projects

…Respondent
The present matter filed by the Complainant herein came up for hearing on
18.01.2024 before this Authority in the presence of Complainant and none
appeared on behalf of the Respondent 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. Facts of the Case as Stated in the Complaint Filed by the
Complainant:
3.

The Complainant acquired Plot No. 70 in the development known as

"Manaswini’s

Smart

Avenue,"

situated

at

Nagireddypally

Village,

Maheshwaram Mandal, Ranga Reddy District, for a total sale consideration of
Rs. 31,16,100/-. As of August 31st, 2022, the Complainant has remitted a
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total sum of Rs. 28,28,900/- to the Respondents and their associates. The
Complainant asserts his readiness to remit the outstanding balance amount
to the Respondent during the plot's registration. However, the Respondents
are engaging in evasive measures to elude registration, utilizing diversionary
tactics to prevent the registration of the aforementioned plot in the
Complainant's name.
B. Relief(s) Sought:
I.

Facilitate

the

registration

of

the

aforementioned

plot

in

the

Complainant's name.
II.

Reimbursement of the interest paid on the loan utilized for the plot's
acquisition.

III.

Any other compensation deemed appropriate by the Authority.

C. Reply by the Respondent:
4.

Respondent Santhosh Kumar, represented by M/s Manaswini Infra

Developers, acknowledges the sale of Plot No. 70 in the Smart Avenue layout
to the Complainant. Acknowledging certain challenges that impeded timely
registration, the Respondent expresses sincere apologies for the delay.
However, they affirm their commitment to completing the registration within
the next three months and pledge to finalize the process before February 28,
2024. The Respondent respectfully seeks an extension of three months from
this Authority to fulfil this commitment.
D. Hearing Conducted:
5.

On the 18.01.2024, a hearing was convened, during which the

complainant was present in person, and however none appeared on behalf of
the Respondent. The complainant reteirated the contentions made in the
Original complaint. Further submitted that he is still willing to get the plot
registered In his name.
6.

Further, complainant submitted that he is willing to wait till February

28th for the registeration as promised by the Respondent in his written reply
to the Authority.

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7.

Further, requested the Authority to direct the Respondent to pay

interest to the complainant for the delay in handing over the possession of the
plot by the Respondent.
E. Observations made by the Authority:
8.

On the above pleadings, the pointes that arise for consideration are:

1. Whether there has been a delay by the Respondent in handing over the
possession of the said plot?
2. Whether the complainant is entitled for the reliefs sought?
9.

Point 1: Pursuant to the Memorandum of Understanding (MOU)

executed by the Complainant and Respondent on the 9th of December 2022,
it is stipulated within the relevant clause that the Respondent assured the
Complainant that the subject plot would be registered by the 31st of
December

2022.

Furthermore,

in

the

Respondent's

written

response

submitted to this Authority, there is neither dispute nor denial with respect to
the contentions raised by the Complainant. In fact, the Respondent
acknowledges a delay on their part due to certain challenges faced by the
company and expresses willingness to register the plot by the 28th of
February 2024, a proposition to which the Complainant has given consent.
The matter is addressed accordingly.
10.

Point 2: In the present complaint, the Complainant intends to proceed

with the project and seeks possession of the subject plot along with delayed
possession interest, as provided under the provisions of Section 18(1) of the
Real Estate (Regulation and Development) Act (RE(R&D) Act), which is
outlined below:
(1) If the promoter fails to complete or is unable to give possession of an
apartment, plot, or building—
(a) in accordance with the terms of the agreement for sale or, as the
case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of
suspension or revocation of the registration under this Act or for any
other reason
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he shall be liable on demand to the allottees, in case the allottee wishes to
withdraw from the project, without prejudice to any other remedy available,
to return the amount received by him in respect of that apartment, plot,
building, as the case may be, with interest at such rate as may be prescribed
in this behalf including compensation in the manner as provided under this
Act:
Provided where an allottee does not intend to withdraw from the
project, he shall be paid, by the promoter, interest for every month of delay,
till the handing over of the possession, at such rate as may be prescribed.

11.

It is evident from the MOU dated 9th December 2022, executed between

the parties herein, that the Respondent shall register the plot within 31st
December 2022. As the Respondent has failed to hand over possession from
31st December 2022 to the present date. Upon consideration of the
documents

available

on

record

and

submissions

made

regarding

contravention of the provisions of the Act, the Authority is satisfied that the
respondents are in contravention of Section 11(4)(a) of the RE(R&D) Act by not
handing over possession by the date as per mentioned in the MOU dated 9th
December 2022. Consequently, as per the website of the State Bank of India,
the marginal cost of lending rate (MCR) as of the date i.e., 22nd January
2024, is 8.65%. Accordingly, the prescribed rate of interest will be marginal
cost of lending rate + 2%, totalling 10.65%. As such, the Complainant shall be
entitled to interest for every month of delay from the due date of registration
i.e., 31st December 2022, until the actual handing over of possession or offer
of possession, whichever is earlier, as per Section 18(1) of the RE(R&D) Act
2016.
F. Directions of the Authority:
12.

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

directions 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:

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I.

The Respondent is directed to register the aforementioned plot in the
name of the Complainant on or before the 28th of February 2024.

II.

The Complainant is directed to remit the remaining balance of the sale
consideration amount on the day of the registration of the said plot.

III.

The Respondent is directed to pay interest to the Complainant on the
paid-up amount at the prescribed rate of 10.65% per annum, in
accordance with Rule 15 of the TS RE(R&D) Rules 2017, i.e., from 31st
of December 2022, until the actual date of registration of the said plot,
as per Section 18(1) of the RE(R&D) Act of 2016.13.

IV.

In lieu thereof, the present complaint stands disposed of.

14.

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. Srinivas Rao,
Hon’ble Member
TS RERA

Sd/-

Sri. Laxmi NaryanaJannu,
Hon’ble Member
TS RERA

Sd/-

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

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