Order Complaint No. 83 OF 2024

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Complaint No. 83 of 2024
13th December, 2024
Corum:

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

Golusula Santhosa

…Complainants
Versus

K. Srinivasa Rao
Gopal
Vijay Lakshmi

…Respondent

The present complaint, filed by the Complainant, was listed for final
hearing before this Authority on 28th August 2024. Complainant counsel
Sri Rajendra Kumar for the Complainant. Respondent 2 appeared in person;
however, Respondent 1 and Respondent 3, despite being duly served with
notices, failed to appear on any scheduled hearing dates. Given their
absence, the Authority proceeds to decide the matter ex-parte with respect
to Respondent 1 and Respondent 3, while considering the submissions
made by both the Complainant and Respondent 2. After examining the
relevant submissions, this Authority proceeds to pass the following ORDER:
2.

The 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").
A. Brief facts of the case on behalf of complainant:
3.

On October 25, 2021, an agreement of sale was executed in

Hyderabad between M/s. Sri Punyabhoomi Developers Pvt. Ltd., represented
by its Managing Director, K. Sreenivasa Rao (S/o Late Venkateswarulu), and
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the complainant, Mrs. GolusulaSanthosha (W/o GolusulaNarsimhulu). In
pursuance of this agreement, the complainant paid an amount of Rs.
4,12,500 for an open plot measuring 165 square yards, along with an
additional Rs. 10,000 for registration fees. Despite receiving full payment,
the respondent, Mr. Sreenivasa Rao, has failed to deliver possession of the
plot and register the same in the complainant's name.
4.

The complainant submits that, over the past three years, the

respondent has avoided personal meetings, ignored phone calls, and has
been generally unresponsive to queries related to the delivery of the plot.
The respondent's office is reportedly managed by an assistant named
Prabhakar, and the Managing Director himself has been absent, offering no
clear timelines or assurances regarding the handover of the property.
5.

The complainant further submits that there are numerous other

purchasers who have similarly paid for plots but have neither received
possession of their respective plots nor refunds of their invested amounts.
Allegedly, the respondent has continued to evade his obligations, with
promises relayed indirectly through an agent named Gopal, claiming that
the plots would be delivered soon. These assurances have reportedly been
repeated over several occasions, creating frustration among the purchasers,
including the complainant, who now seeks the return of the invested
amount with interest due to the prolonged delay and lack of transparency
from the respondent.
B. Relief Sought:
6.

The

owner/managing

director

K.

Sreenivasa

Rao

of

M/s.

Punyabhoomi Developers Pvt. Ltd. provided agreement of sale copy by
receiving full amount of Rs. 4,12,500 + Rs. 10,000 and not registered and
delivered the plot in the name of its customer by name Golusula Santhosha
W/o GolusulaNarsimhulu, since last 3 years onwards and committed
cheating and fraud as the said person is not attending the office and not
sitting in the office and not meeting the customers and not answering the
customers phone calls and his whereabouts is not tracing out but by his
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rented broker cum agent by name Gopal coming the assurances, that the
land will be delivered very soon. This word is hearing since last 3 years
onwards but the said person K. Sreenivasa Rao not coming before the
customers instead dodging each and every time to the customers. Thus, due
to vexed attitude of the rented broker cum agent and owner/managing
director by name K. Sreenivasa Rao, complainant is not interested in land
and hereby demanding her invested amount of Rs. 4,12,500 + Rs. 10,000 +
interest at the rate of 24% per annum from the date of agreement of sale
onwards.
C. Interim Relief:
7.

Prayed for full and final amount of Rs. 4, 12,500 + Rs. 10,000 +

interest at the rate of 24% per annum.
D. Findings:
1. Whether the complainant is entitled for the relief sought?
2. Whether the respondents have violated provisions of RE(R&D) Act? If so,
to what extent?
Point 1:
8.

This Authority has carefully reviewed the documentary submissions

made by the Complainant, as well as the oral arguments presented by
Respondent No. 2. Despite due service of notice, Respondent No. 1 and
Respondent No. 3 failed to appear before this Authority or provide any
response. Therefore, this matter is proceeded ex-parte against Respondent
Nos. 1 and 3.
9.

The Complainant has provided credible evidence of payment made to

Respondent No. 1 and submitted a copy of the agreement of sale executed
on October 25, 2021. During the hearing, Respondent No. 2 corroborated
the Complainant's submissions, affirming that the full consideration
amount had been paid by the Complainant and subsequently transferred to
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Respondent No. 1. In the absence of any evidence or submission from
Respondent No. 1 to contradict these claims, despite being duly summoned
by this Authority, it is determined that Respondent No. 1 is liable to refund
the entire sale consideration amount collected from the Complainant
towards the purchase of the said plot.
10.

Under Section 18(1) of the Real Estate (Regulation and Development)

Act, 2016, a promoter who fails to complete or deliver possession of a plot is
mandated to return the amount received from the allottee along with
interest at a rate prescribed under the Act.
11.

Rule 15 of the Telangana Real Estate (Regulation and Development)

Rules, 2017, specifies that the interest rate payable by the promoter to the
allottee shall be the State Bank of India's highest marginal cost of lending
rate (MCLR) plus two percent.
12.

Based on the latest available data, the highest marginal cost of

lending rate (MCLR) of the State Bank of India is 9.00% Therefore, the
applicable interest rate for this case is calculated as 9.00% + 2%, amounting
to 11%% per annum.
13.

While the Complainant has requested interest at a rate of 24% per

annum, this Authority is bound by the provisions of the Act and Rules,
which stipulate that the prescribed rate of interest is SBI MCLR plus 2%,
making the applicable rate 11% per annum.
Point 2:
14.

Respondent No. 2, who acted as an intermediary in the sale

transaction, has asserted before this Authority that he facilitated the sale of
the plot to the Complainant in the capacity of an Real Estate agent.
However, Respondent No. 2 is not a registered real estate agent, and by
engaging in the sale of plots without RERA registration, he has violated
Section 9 of the RE(R&D) Act.

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15.

During the hearing, it was further asserted by Respondent No. 2 that

the concerned project, "Simhagiri Precious," is not registered with this
Authority. Subsequently, a Show Cause Notice was issued by this Authority
to Respondent No. 1, the promoter of the project, dated 12.08.2024, for
contravening Section 3 of the RE(R&D) Act by failing to register the project.
Despite being duly notified, Respondent No. 1 has failed to appear or make
any representation in response to the Show Cause Notice.
16.

In light of the above facts, the evidence on record, and the relevant

provisions of law, this Authority finds Respondent No. 1 in violation of
Section 3 of the RE(R&D) Act for failure to register the project "Simhagiri
Precious." Furthermore, Respondent No. 2 is found in violation of Section 9
of the RE(R&D) Act for acting as an unregistered agent and facilitating the
sale of plots within an unregistered project.
E. Directions of the Authority:
17.

In the light of findings of the Authority as recorded above, the

following directions under section 37 of the RE(R&D)Act to ensure
compliance of obligations cast upon the promoter as per the function
entrusted to the Authority under section 34(f) of RE(R&D) Act, are issued:
I.

The Authority, exercising its power under Section 62 of the RE(R&D)
Act, imposes a penalty of Rs.20,600/- (Rupees twenty thousand six
hundred only) being 5% of the cost of the plot on Respondent 2,Agent
for contravening Section 9 of the RE(R&D) Act of 2016. Additionally,
the Respondent 2 is directed to strictly comply with the Real Estate
(Regulation and Development) Act, 2016, and refrain from engaging in
any marketing or selling activities of any Real Estate projects without
registering himself under section 9 of the RE(R&D) Act as a Real
Estate Agent. The penalty shall be payable in favour of TG RERA
FUNDS through a Demand Draft or online payment to A/c
No.50100595798191, HDFC Bank, IFSC Code: HDFC0007036, within
a period of 30 days from the date of receipt of this order: and

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II.

In accordance with the discussion at Para Nos 15 above, the
Respondent 1, Promoter is liable for penalty under Sections 59 for
violation of Sections 3 respectively. Rs.1,21,947/- (Rupees one lakh
twenty one thousand nine hundred and fourty seven rupees only) is
imposed on the Respondent 1, promoter herein payable within 30
days in favour of TG RERA FUNDS through Demand Draft or online
payment to A/c No.50100595798191, HDFC Bank, IFSC Code:
HDFC0007036; and directs Respondent 1, promoter to restrain
himself from marketing, advertising, book, sale or offer for sale or
invite any for purchase in any manner without registration and
further Respondent 1 is hereby directed to take steps for necessary
approvals from Competent Authorities- Planning Body and Local
bodies and subsequently obtain registration from this Authority.

III.

The Authority directs the Respondent 1 herein to refund the amounts
paid by the Complainant along with interest at the rate of 11.00%
within 45 days from the date of the order in accordance with Rule 15
of the RE(R&D) Rules, 2017.

IV.

Upon failure of Respondents to comply with the above directions,
under Section 63 of the RE(R&D) Act, 2016 shall be attracted.

V.

No order as to costs.

SdSri. K. Srinivas Rao,
Hon’ble Member
TG RERA

SdSri. Laxmi NaryanaJannu,
Hon’ble Member
TG RERA

SdDr. N. Satyanarayana, IAS (Retd.),
Hon’ble Chairperson
TG RERA

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