Order Complaint No. 715 of 2022

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.715 OF 2022
1st Day of November, 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 K. N. V. S. K. Prasad

…Complainant
Versus

M/s Aakrithi Constructions

…Respondent

The present matter filed by the Complainant herein came up for hearing on
26.09.2023 & 01.11.2023 before this Authority in the presence of the Complainant
in person, and Counsel for Respondent Builder/Developer, 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 Complainant booked a flat in the Project “Aakriti ESTA” registered with

this Authority vide Regn. No. P01100000070. As per the Agreement of Sale dated
25.01.2021, Respondent assured to handover the flat in 17 months i.e., by
25.05.2022. However, failed to do so. He submitted that the Respondent Builder
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did not complete the Project and was forcing the Complainant to pay the full
amount and that the bank sought for Occupancy Certificate for final disbursement
which, the Builder could not obtain. He further submitted that the Agreement of
Sale dated 25.01.2021 prepared by the Respondent is in conflict with Rule 38 of
the Rules, 2017 also that the Complainant paid Rs.3.1 lakhs GST, to which the
Respondent did not produce any receipts.

4.

The Complainant stated that the Respondent Builder failed to make escrow

account in line with Section 4(2)(l)(D) of the Act. Furthermore, by 07.09.2022, 90%
of the total flat cost [i.e., Rs.65,01,599/- (Rupees Sixty-Five Lakhs One Thousand
And Five Hundred And Ninety-Nine Only)], as per the Agreement of Sale was paid
but Respondent Builder did not finish the work in the Complainant’s flat. He added
that the quality of work was not as per brochure provided to him, and that the
Respondent Builder was forcing to pay corpus fund without forming association.
He mentioned that the Respondent Builder was charging interest at 24% for any
delay in payment and not paying any compensation as per Agreement of Sale for
delay in handing over of the flat. Aggrieved by this, the Complainant filed the
present complaint praying to declare the Respondent Builder as a defaulter and
take appropriate action in accordance with law.

5.

Subsequently, the Complainant filed a representation dated 28.01.2023

addressed to this Authority, submitting that the Respondent Builder has registered
itself with RERA and thereafter entered into a tripartite agreement with the
Complainant, himself and the SBI Bank at Madhapur Branch. That the total sale
consideration under the Agreement of Sale for Flat No.405, sought to be purchased
by the Complainant is Rs.73,95,130/- (Rupees Seventy-Three Lakhs Ninety-Five
Thousand and One Hundred and Thirty Rupees) which includes all applicable

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taxes, corpus and 2 years’ maintenance charges. He reiterated that the Respondent
Builder failed to handover the flat within the handover date i.e., 25.05.2022 as per
the Agreement of Sale and therefore, the Complainant stopped making any further
payments invoking Clause No. 9.2.(i) of the Agreement of Sale dated 25.01.2021.
Furthermore, the Complainant provided email correspondence between himself and
the Respondent Builder, demonstrating that the Respondent Builder had requested
the Complainant to make a full payment before the project's completion. The
Respondent Builder also failed to provide the Occupancy Certificate to the
Complainant, and further upon physical verification, it was found by the
Complainant that his Flat No.405 was incomplete without any doors, electricity,
plumbing, etc., and also the common amenities were incomplete.

6.

He also added that no handover was being done by the Respondent Builder,

and to the Complainant’s surprise, the Respondent Builder, vide e-mail dated
18.01.2023 stated that the allotment of Flat No.405 in favour of the Complainant
had been cancelled. Aggrieved, he sought for refund of the total amount paid by
him along with interest as per the Rules, 2017.

B. Reply on behalf of the Respondent:
7.

Accordingly, vide Notice dated 28.12.2022, 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.
Since, no reply was received, a Reminder Notice dated 12.05.2023 was issued to
him to submit a reply. Accordingly, Vide Reply dated 23.05.2023, the Respondent
Builder merely denied all the allegations as false and submitted that escrow
account is being maintained, that the Complainant was asked to pay balance

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amount but he failed to do so, and that construction was in line with the
permission sought from the competent authority.

C. Hearing Conducted:
8.

This Authority called the Complainant and the Respondent for hearing on

26.09.2023 & 01.11.2023, whereas both parties reiterated their stand as per their
respective submissions enumerated above. The Respondent Builder also submitted
that the flat is now ready for occupancy and that upon receiving balance payment,
he is willing to register the Flat No.405 in favor of the Complainant. However, the
Complainant on the other hand, submitted that he only sought for refund along
with interest as per the Rules, 2017.

D. Observations and Directions of the Authority:
9.

Upon consideration of the facts and circumstances of the present matter,

this Authority directs the Respondent Builder to refund the amounts paid by the
Complainant along with interest at the rate of MCLR of SBI plus two percent i.e.,
10.5% as on the date of this Order. The calculation of interest on the principal
amount paid by the Complainant shall start from the date on which the
Complainant defaulted in the payment schedule provided by the Respondent
Builder i.e., from 07.09.2021 onwards until 31.10.2023.

10.

The Complainant is already in receipt of Rs.61,91,999/- (Rupees Sixty-One

Lakhs Ninety-One and Nine Hundred and Ninety-Nine Only) from the Respondent
Builder. The Respondent Builder is also directed to refund the GST amount paid by
the Complainant to him at the time of purchase of the flat. As the Complainant has
cancelled the flat voluntarily, the Respondent Builder is entitled to forfeit the

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booking amount paid for the allotment as provided under Clause 7.5 of the Model
Agreement under Annexure to Rule 38 of the Rules, 2017.

11.

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.

12.

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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