Order Complaint No. 943 Of 2023

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.943 OF 2023
31st day of May, 2024
Corum:

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

Sri M.Raj Kumar
…Complainant
Versus
M/s Janapriya Upscale
…Respondent
The present matter filed by the Complainant herein came up for final
hearing on 07.03.2024 before this Authority in the presence of Complainant
present in person and Sri Nagendra authorised representative on behalf of the
Respondent and upon hearing the arguments of 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
“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. Brief Facts on behalf of the complainant:
3.

The complainant purchased a unit in "Silver Meadows," a project by

Janapriya Ventures, located in Vemunagauta, Sainikpuri, Secunderabad. He
bought a 470 sq. ft. unit in the said project in 2019. The Respondent
promised to hand over possession of the unit within 24 months. However, in
2021, even when the construction was not completed, they pressured the
complainant to register the unit, threatening cancellation of the agreement
and forfeiture of 10% of the amount.

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4.

At the time of registration, the Respondent assured the complainant

that possession would be given by December 2021. However, the Respondent
has yet to finish the construction work.
5.

The complainant opted for a home loan and has been paying interest for

the past 2 years without being able to rent or sell the property.
B. Relief(s) Sought:
6.

Requesting the Authority to intervene and direct the Respondent to

cancel the registration and refund the entire amount with interest.
C. Reply of the Respondent:
7.

Denying to the allegations made by the Complainant submitted that it

is not true that the work in the his booked flat no. S-507 admeasuring super
built up area 470 sq.ft in 5th floor of Block no.6 S(LIG/EWS) in Silver
Meadows at Silver Crest at Sainikpuri, Secundrabad, has not been completed.
The following works have been completed except minor works.
1. Block work completed & Platering completed
2. Water proofing completed
3. Bulket lights fixing completed.
4. White wash completed
5. Flooring completed
6. Doors & Windows are fitted
7. Lift work is in progress
8.

CP sanitary works will be fixed along with snag for which Customer

needs to come to site for identifying minor snags. Respondent sales and CRM
staff have sent mail to Complainant on 16.02.2024 stating completion of the
above works and requesting customer to visit his flat and called him over
phone also, but the Complainant has not responded.
9.

Therefore, Respondent requests this Authoity to direct the Complainant

to visit his flat/property and help them addressing minor snags and clear the
said unit due amount of Rs. 3, 13,640/- including parking and amenities.

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D. Rejoinder:
10.

The complainant submitted that as per his visit to the concerned unit,

below works have been noticed:
a. Block work completed
b. Corridors are full of dust & not clear
c. Stairs are not perfectly layered
d. Parking area is not completed
11. Requesting this Authority to take the below mentioned points into consideration:

a. Flat should be handed over within 15 days along with the lift.
b. All the amenities which were promised were to be given within 15 days.
c. That the complainant has paid Rs. 27,000/- towards maintenance
charges for 2 years to be justified
d. That the Respondent shall pay him Rs.10, 000/- per month from the
date of registration till they give the handover.
e. The final payment will be paid after the handover of the unit.
E. Hearing Conducted:
12. On the 20th of February, 2024, both parties were present. During the last
hearing, the Complainant submitted that they had paid 90% of the sale
consideration amount, yet the flat remains incomplete. Therefore, they seek
the cancellation of the unit and request the Respondent to refund the amount
with interest.
13.

However, the Respondent requested an adjournment to file a reply. On

the subsequent date of hearing, the Respondent did not dispute or denied the
allegation about the delay, however, submitted the Authority that the said flat
is ready and only lift work is pending which shall be provided within few days.
However, as the complainant has not paid the balance amount, the handover
of the possession is pending.
14.

On contrary the complainant retaraiiated the contentions made in the

complaint, stating that the lifts have not been provided, the staircase work is
pending. However, the complainant submitted that he is willing to take the
possession of the flat if the Respondent completes the pending work and
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handover the possession immediately. Authority, on this submission, asked
the Complainant whether he is willing to continue with the project and take
the possession or withdraw and seek for refund. The complainant prayed for
direction of handing over the concerned flat.
15.

On the other hand, in support of defense the respondent have produced

current photographs of the completed unit and stated that the works are
completed; only lift work is pending and the same shall be completed soon.
F. Observation of the Authority
F.1. Whether the complainant is entitled for the relief claimed?
16.

The complainant has approached this forum seeking the relief of

direction to the respondent to repay the amount paid for the concerned flat
with interest. However, during the hearing, the Complainant agreed upon the
completion of the flat and prayed for direction to respondent to handover ovet
the possession along with interest on delay period. The ground urged that the
complainant has booked an apartment unit.no S-507 admeasuring super
built up area 470 sq.ft in the project “Silver Meadows at Silver Crest” of the
Respondent promoter for a total sale consideration 14,09,530/-. The
Respondent was required to handover the possession of the said unit to the
complainant within 24 months from the date of the Agreement dated
21.11.2019, with a grace period of 6 months, subject to the purchaser having
completed the payments as per clause 2.2. Respondent also agrees to pay
sum of Rs.3/- per square feet per month till the flat is ready to handover, if
the construction of the flat has been delayed beyond the period agreed
mentioned.
17.

The same is resisted by the Respondent on the ground that the work is

now completed and the same was alerted to the complainant through mail on
16.02.2024. But has neither disputed nor denied to the allegation of delayed
possession.
18.

Based on the averments of the agreement, the parties herein have

executed a sale agreement on 21.11.2019. The sale agreement constitutes a
pivotal document binding the parties in a contractual relationship, subject to
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proper enforcement in accordance with the law. Ensuring freedom from
ambiguity and vagueness is imperative. Pursuant to the terms stipulated in
the sale agreement dated 21.11.2019, the respondent was obligated to
transfer possession of the specified unit to the complainant within 24 months,
i.e., by 21.11.2021, with a grace period of 6 months, i.e., until 21.05.2022.
19.

However, the respondent executed a Sale Deed on 10.11.2021, wherein

Clause 6.1 explicitly states that the respondent shall confer possession of the
scheduled property to the complainant on the same day. Nevertheless, the
respondent failed to fulfill this obligation. Upon careful examination of the
completion date, the Authority has duly considered that since the possession
due date fell within the year 2021, the respondent is entitled to leniency
regarding the grace period and force majeure, granted to all projects due to
the COVID-19 pandemic. Consequently, it is prima facie evident that the
project falls within the period affected by the COVID-19 pandemic. Thus, a
grace period of 1 year, in addition to the existing grace period, shall be
extended. Consequently, the revised due date for possession is set for
21.05.2023.
20.

As per the decision of the Hon’ble Supreme Court of India in appeal no.

6750-57/2021, M/s Newtech Promoters V. The State of Uttar Pradesh, it is
held as under:
Para 22- “If we take a conjoint reading of sub sections (1),(2) and (3) f section 18
of the Act, the different contingencies spelt out therein, (A) the allottee can either
seek refund of the amount by withdrawing from the project (B) such refund
could be made together with interest as may be prescribed; (C) in addition, can
18(3) of the Act; (D) the allottee has the liberty, if he does not intend to
withdraw from the project, will be required to be paid interest by the promoter
for every months’ delay in handing over possession at such rated as may be
prescribed”
21.

The said principle is aptly applicable to the present case on hand.

22.

As per section 18 of RE(R&D) Act, the respondent is liable to pay

interest for delay period. Since the claim of the complainant is supported with
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cogent materials, the delay in handing over possession being apparent, this
Authority see no legal impediment in allowing the request of the complainant.
The complainant have paid 90% of sale consideration amount towards the
unit..The fact the Sale deed was entered in November 2021, with the clause of
handing over the possession from the day, the same has been failed. Also it is
noted that the Respondent has not provided an explanation as to why a delay
has been occurred, nor denied that a delay has not taken place. Further, the
mail copy submitted by the Respondent wherein the Respondent is
mentioning that the work has been completed and to clear the dues is dated
on 16.02.2024, there has been a evident delay by the Respondent. Infact, the
Respondent is yet to provide lift work, which shows the delayness in
completing the project.
23.

As in view of the provision of section 18 which provides interest till the

date of possession and hence this Authority is of the view to grant delay
period charges till the date of the possession is given along with the lift,
electricity and plumbing facility.
24.

Therefore, it is incumbent upon the respondent to pay interest on delay

period to the complainant which is determined as below:
S.no

Period

Amount

Date

1.

Total payment till possession

14,09,530/-

21.11.2021

2.

Subsequent paid till date

10,62,583/-

12.11.2021

3.

Total amount pending by the 3,46,947
complainant

4.

Delayed charges to be paid as Rs.3- per square Date
per

Clause

Agreement
21.11.2019

6.1
of

sale

of

of

agreed

the feet per month till possession – 24
dated: date.

months from the
date of agreement
along with grace
period

of

6

months i.e plus
the

extension

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provided

of

1

year due to Covid
19 - 21.05.2023

25.

Having regards to all these aspects, the complainant is entitled for

interest on delay period.
G. Directions of the Authority
26. In exercise of the powers conferred under section 31 of the Real Estate
(Regulation and Development) Act, 2016, the complaint bearing no. 943 of
2023 is hereby allowed as follows:
1. The Respondent is hereby directed to pay delay charges for delay period
as agreed in the Agreement of Sale dated 21.11.2019, i.e., Rs. 3 per
square foot per month. The arrears of such interest accrued from the
due date of possession, i.e., 21.05.2023, until the date of possession of
the said unit, shall be paid by the Respondent to the allottee within 60
days from the date of this Order.
2. Further, the Complainant is directed to pay the outstanding dues, after
the adjustment of delay charges for the delayed period, and the
respondent shall hand over the possession within 30 days after the
receipt of this Order.
3. Respondent is directed to complete the pending work of the entire
project within 30 days from the date of this Order. If the Respondent
fails to complete the pending works within the stipulated timeframe
mentioned by the Authority, Respondent shall be liable to continue to
pay interest to the complainant in case of default.
4. In lieu of the above findings and directions, the present complaint
stands disposed of. The parties shall bear their own costs. The parties
are hereby informed that failure to comply with this order shall attract
section 63 of the Act.

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25.

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) as per Section 44 of the Act, 2016.

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

Sd/Sri. Laxmi NaryanaJannu,
Hon’ble Member
TG RERA

Sd/Dr. N. Satyanarayana, IAS (Retd.),
Hon’ble Chairperson
TG RERA

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