Order Complaint No. 765 of 2021

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.765 OF 2021
20th Day of October, 2023
Corum:

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

Sri Dwarampurdi Venkateshwara

…Complainant
Versus

M/s Devis Homes Pvt.Ltd

…Respondent

The present matter filed by the Complainant herein came up for
hearing on 18.07.2023, 17.08.2023, and on 13.09.2023 before this
Authority in the presence of Complainant present in person, and the Mr.
Jagan Mohan Reddy on behalf of 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 “RERD 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 Complaint:
3.

The facts of the case, in brief, are that the Complainant entered into

an Agreement dated 07.03.2019, wherein the complainants purchased a
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plot no. 148 measuring 328 sq. yards with the Ground and First floor with a
built-up area of 3400 sq. ft in the Project known as “Golden Leaves,” a gated
community project of Villas promoted by M/s Devis Homes Pvt. Ltd and got
the same registered via Sale Deed dated 9th September 2019.
4.

Further submits that the Respondent delayed in handing over the

possession to the Complainant concerning the agreed promises made in the
agreement. These delays are as follows:
a. Delay in making the Villa fit for occupancy
b. Pending works as per details given below are to be completed
c. Issue of Occupancy Certificate Pending.
B. Relief Sought:
5.

Accordingly, the Complainant prayed this Authority to direct the

Respondent for the immediate completion of the pending works mentioned
below:
I. Compound wall on the west side (partly) and south side since an open
flood drain exists.
II. Final coat of lappam followed by 2 coats premier plastic emulsion
paint.
III. Municipal water connection with an underground sump (2000 liters).
IV. Taps and bath fittings not provided so far.
6.

To direct the Respondent to provide an Occupancy certificate issued

by the competent Authority.
7.

Monetary compensation of Rs. 40,000 per month for the delayed
period beyond the completion date given in the sale agreement dated
07.03.2019.

C. Reply on behalf of the Respondent:
8.

Per contra, the Respondent, via its Reply dated 01.02.2022, submitted
that the Respondent has strictly abided by the Rules of Telangana
Government Regulatory Bodies, TSRERA & GHMC Authorities. They have
started the Project “Golden Leaves,” consisting of 220 Villas in 2019 and

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are about to complete in all respects with complete satisfaction of the
Customers of said project by March 2022.
9.

Further

submitted

that,

as

per

GHMC

Building

permit

No.

53438/HO/EZ/Cir -03/2016, dated 21.02.2018, it is clearly mentioned
that the project construction should be commenced before 20.08.2019
and should be complete before 20.02.2024. The said project is also a
registered project vide registration no. P02200000428.
10.

Also, states that they have obtained the Deed of Reconveyance

vide document no. 961 of 2022, stating that the mortgagors constructed
as per GHMC plan, and there is no deviation as per GHMC rules;
therefore, the said mortgaged property is reconveyed. The Respondents
have obtained the Occupancy certificate from the GHMC vide application
no. 1/C3/05193/2021-OC, proceedings NO/OC: 1/C3/00053/2022,
dated 18.01.2022.
11.

Submits that the complainant, Sri Dwarampudi Venkateshwara

Rao, has booked a Villa no. 148 in the Respondent Project “Golden
Leaves” on dated 17.12.2018 by paying 5,00,000/- through Cheque as a
booking advance against the total consideration of Rs. 65,95,600/-. As
per the agreed terms between Sri Dwarampurdi Venkatesrwara Rao and
Devis Homes Pvt. Ltd., balance payments will be released according to
the development of the Villa, and the document registration will be done,
and the possession of the Villa will be given only after receiving the
complete sale consideration amount of Rs. 65,95,600/- plus 5% GST
plus the additional work cost if any.
D. Hearing Conducted
12.

This Authority called the parties for a hearing on 18.07.2023,

17.08.2023, and on 13.09.2023, where both parties appeared on
13.09.2023 and reiterated the points as mentioned above. Wherein the
Complainant submitted before the bench that a Sale Deed was executed
subsequently Respondent asked for an amount of Rs. 81, 25,380, and
the same was paid by the Complainant, also acknowledged by the
Respondent. The Complainant also states that as per the registered
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Agreement of Sale, the Respondent is liable to handover the possession
by 31.12.2019, but the Respondent failed to comply with the clause 16
representing as “the developer assures the completion of the Construction
of the Villas and hand over the possession of the same to the Purchaser by
31.12.2019, grace period may be 6 months,” hence a delay of 3 years 8
months approximately. Also submitted that the Respondent failed to
complete the work of the Villa and hence has not yet taken over the
possession of the Villa.
13.

Conversely, the Respondent submitted that as per clause 16,

the Respondent had a grace period of 6 months, and due to Covid-19 and
floods around the city, Force majeure was arisen and delay took place.
Also, contended that the Complainant is yet to pay Rs. 15,00,000/- to
the Respondent for the interior work that was made done by the
Respondent on and as per the instructions by the Complainant, due to
the non-payment of the balance amount, the Respondent has kept the
minor work pending. Whereas the occupation certificate has been issued
from GHMC vide application no. 1/C3/05193/2021-OC, proceeding
No/OC: 1/C3/05193/2021-OC dated 18.01.2022.
F. Observations of the Authority/Directions
14.

Upon careful examination of the facts and circumstances in the

present case, the following points arise for deliberation before this Authority:
1. Whether there was a delay on the part of the Respondent in handing
over the possession of the Villa, hence a violation of section 11(4)(a)?
15.

The Respondent contends that the delay in handing over possession of

the Project was primarily a result of force majeure circumstances, including
government orders and restrictions, High Court and Supreme Court orders,
shortages in the supply of raw materials, and the global impact of the Covid19 pandemic. It is noteworthy that, as per the registered Agreement of Sale
dated 07.03.2019, specifically in clause 16; the possession of the unit in
question was to be delivered by 31.12.2019, with a grace period of six
months. This Authority has meticulously reviewed the substantial evidence
and documents presented in support of the claims related to Covid-19 and
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floods significantly disrupting construction work. Consequently, the due
date for possession is determined to be in the year 2021. Thus, considering
the aforementioned reasons, the Respondent is granted leniency, and the
admissibility of both the grace period and the force majeure contention is
acknowledged by this Authority.
This Authority firmly concludes Point 1, that the delay attributed to
the Respondent can be attributed to the force majeure circumstances.
Furthermore, it is noted that the referenced project is now complete, with
the Respondent having obtained an occupancy certificate in the year 2022.
The Complainant has taken possession of the flat as early as December
2021, as evidenced by the Respondent's submission of advertisements for
tenant requirements. However, in the present case, it is prima facie evident
that the project falls under the force majeure category, given the existence of
a grace period of 6 months, as stipulated in the registered agreement of sale.
2. Whether the Complainant’s relief, as prayed for, be granted, if yes, to
what extent?
16.

The Complainants in his original complaint have sought the following

relief:
i. Direct the Respondent for the immediate completion of the pending
work they are:
a. Compound wall on the west side (partly) and south side since an
open flood drain exists.
b. Final coat of lappam followed by 2 coats premier plastic emulsion
paint.
c. Municipal water connection with an underground sump (2000
litters).
d. Taps and bath fittings not provided so far.
i. To direct the Respondent to provide an Occupancy certificate issued
by the competent Authority.
ii. Monetary compensation of Rs. 40,000 per month for the delayed
period beyond the completion date given in the sale agreement dated
07.03.2019.
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17.

In the present complaint, with regard to the relief sought in Form M,

wherein Respondent prayed for the completion of the pending work, vide
letter no. 765/2021/TSRERA dated 04.01.2023, wherein the Deputy
Commissioner, GHMC, Uppal Circle, and the Assistant City planner, Town
Planning, Uppal were directed to inspect Villa no. 148 in the layout “Golden
Leaves” to submit a report ascertaining whether the promoter has completed
all the work as mentioned in the complaint. For the same, the inspection
was carried out by GHMC, and information was furnished to this Authority
via letter no. 148/C3/TPS/GHMC/2023, dated 24.01.2023 as below:
S.

Information required

Information furnished

no
1.

Compound wall on the West side (partly) and The plot 148 is enclosed
South side since open flood drain exists.

with compound wall on
all the sides. An open
stroam drain is exiting
on the south side of the
building.

2.

Final Coat of Lappam followed by 2 coats Final Lappam coating is
premier plastic emulsion paint.

pending since the wood
work is pending, which
is supposed to be taken
up by the Owner.

3.

Muncipal water connection with underground Muncipal
sump(2000 ltrs)

water

connection is provided,
and is available for 24
hours

4.

Taps and Bath fittings not provided so far.

This office inspected the
building and observed
that

all

the

fittings

include taps and bath
fitting are provided.

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18.

In view of the above, this Authority is of the view that the Respondent

has completed all the pending work mentioned by the Complainant in his
prayer.
19.

Further, with regard to the Occupancy certificate, Complainant in his

written submission dated 25.09.2023, has mentioned that he has issued the
GHMC Occupancy certificate on 18.01.2022. Also, the copy of the
Occupancy certificate has been submitted to this Authority by the
Respondent.
20.

The complainant is seeking compensation in the present relief. It is

essential to understand that the Act clearly distinguishes between interest
and compensation, providing them as distinct entitlements available to
allottees. This Authority does not possess the jurisdiction or authority to
grant compensation as specifically sought by the complainant.
20.

On

consideration

of

the

documents

available

on

record

and

submissions made by both the parties regarding contravention of the
provision of the Act, the authority is satisfied that due to the force majeure,
that is due to Covid-19 and floods were an unforceable circumstance and
their consequences in which the Respondent had no control over and hence
the delay undertook.
21.

Meanwhile, the Respondent during the Oral submissions submitted

that the complainant did not pay the balance amount of Rs. 15,00,000/(Rupees fifteen lakhs only) to the Complainant and hence kept certain minor
work pending in the Villa, to any such payment the Complainant has
denied. During the Oral submissions, the Authority instructed to submit the
documents and evidentiary information for the same claim. However, both
the parties failed to provide any such Agreement or Memorandum of
understanding that took place between the parties with regard to additional
charges in respect of Interior design work. Hence, this Authority by going
through the registered Agreement of sale, in which there is no such clause
that mentions about the Additional charges, going strictly by the registered
Agreement of sale and other evidentiary documents, this Authority believes
that as it was mutually agreed by both the parties with respect to the

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additional work and its charges, that shall be amicably settled by both the
parties mutually, and this Authority will not be getting into its merits.
22.

In light of the above, it is determined that the Respondent has

successfully completed the pending works specified by the Complainant in
their prayer. Furthermore, the Respondent has issued the occupancy
certificate to the Complainant from the GHMC.
23.

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.
24.

Complaint stands disposed of.

Sd/Sri. K. Srinivas Rao, Hon’ble Member
TS RERA

Sd/Sri. Laxmi NaryanaJannu, Hon’ble Member
TS RERA
Sd/Dr.N.Satyanarayana, IAS (Rtd), Hon’ble Chairperson
TS RERA

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