Order Complaint No. 948 Of 2023

sBEFORE TELANGANA STATE REAL ESTATE REGULATORY
AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.948 OF 2023
22nd of 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

K.Sailaja
K.Ramesh Chandra

…Complainant

Versus
M/s Sai Surya Developers rep by it Managing Director Satish Chandra
Gupta
…Respondent
The present matter filed by the Complainant herein came up for hearing
on 15.11.2023, 21.12.2023 and on 10.01.2024 before this Authority in the
presence of Complainant present in person, Counsel Priyadarshini 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.

M/s. Sai Surya Developers, hereinafter referred to as the respondent,

has undertaken the development of a layout in Kondakal Village at Bhanoor Patancheru, having obtained requisite permissions from the Hyderabad
Metropolitan Development Authority (HMDA) under HMDA Application No:
036454/SKP/LT/U6/HMDA/12062020,

dated

11.09.2020,

and

Layout

Permit No: 000014/LO/PIg/HMDA/2021, dated 06.01.2021, along with

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TSRERA No: A02500000290. The said layout is identified as "Green
Meadows."
4.

As part of the aforementioned development, the complainant entered

into a Sale Agreement on 06/04/2021 for a Mortgage Plot (Plot No: 140,
measuring 226 Sq.Yards), with an immediate payment of 50%. The remaining
50% was to be paid post-Mortgage release but prior to Registration.
5.

Contrary to the terms agreed upon, the respondent executed a Sale

Deed for five Mortgage plots (Plot Nos. 139/140/141/142/143) at the
Sangareddy Registrar's Office to another customer on 06.07.2022, even before
obtaining the Mortgage release from HMDA.
6.

Additionally, the Nala process for the entire venture is incomplete, and

mutation for nearly 14 acres was not completed at the time of obtaining
approvals from HMDA & TSRERA. An application to address this was
submitted in July 2023.
7.

The respondent is unwilling to refund the complainant's amount,

justifying their actions as common in the real estate sector.
B. Prayer:
8.

The complainant seeks a refund of the amount paid for the plot.

C. Reply filed by the Respondent:
9.

The respondent asserts that both parties have reached an amicable

resolution, settling the matter out of court. The respondent voluntarily issued
three cheques (No: 00196, 000198, and 000199) to repay the advance to the
complainant. However, the complainant deposited cheque No: 000199 without
notifying the respondent, resulting in its dishonor on 25.09.2023. The
complainant served a statutory legal notice on 05.10.2023. As of the current
date, the agreement of sale dated 06.04.2021 is canceled, and the
complainant has received her due amounts through post-dated cheques.
10.

The respondent requests the Authority to dismiss the complaint as the

matter is being amicably settled out of court.

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D. Hearing Conducted:
11.

On 15.11.2023, a hearing was conducted. The Complainant attended in

person, while no representative appeared on behalf of the Respondent. The
Complainant asserted that she had paid Rs. 22,61,000/- for the mortgaged
plot, alleging that the Respondent had illegally registered the same plot.
Consequently, the Authority issued a fresh summons to the Respondent for
the next date of hearing.
12.

On 21st December 2023, the Respondent submitted a counter-reply,

asserting that the dishonour of the cheques occurred solely due to the
complainant's failure to provide prior intimation. The Respondent, invoking
Section 138 of the Negotiable Instruments Act, seeks dismissal of the matter.
Nevertheless, both parties express a willingness to amicably resolve the
dispute. An extension of time was granted to facilitate the settlement and
reimbursement of the amount to the complainant.
13.

On 10.01.2024, none appeared on behalf of the Respondent, whereas

the complainant was present in person. The complainant submitted to the
Authority that Respondents did not approach them regarding the refund and
has neither responded to the communications made by the complainant
during the time provided by the Authority. The complainant denies the
submissions made by the Respondent, stating that the said cancellation of
Agreement of sale was not a mutual decision and that they have not received
the entire amount. Further, that the Respondent has voluntarily executed a
declaration letter dated 03.05.2023, along with post-dated cheques, and the
said cheques were dishonoured for want of funds. Hence, the complainant
prays for the Authority to direct the Respondent to repay the amount
committed by the Respondent in the Declaration, along with interest as of the
date, and also to direct the Respondent to compensate for the expenses for
mental agony that the complainant has been suffering for the past two years.
E. Observations made by the Authority:
14.

Considering the various points stated in the foregoing paragraphs and

arguments given by both parties, the following point arise for consideration:
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Point 1: Whether the complainant is entitled to the relief sought?
15.

It is evident from the Agreement of sale dated 06.04.2021 executed

between the parties wherein the complainant has paid a total of 22,61,000/as an advance sale consideration for the purchase of a plot in the said project.
The balance sale consideration of Rs. 22,59,000/- was to be paid by the
complainant within one week after the mortgage release from HMDA or before
the registration.
16.

However, the contention raised by the complainant that the 5

mortgaged plots not released by the HMDA were registered to another allottee
vide document no: 24460/2022 dated 06.07.2022. These contentions were
neither denied nor disputed before the Authority by the Respondent.
17.

It is also observed that a Declaration dated 03.05.2023, was made by

the Respondent, wherein the Respondent assured the complainant that he
would return the amount of Rs.22,61,000/- paid by the complainant along
with expenses and Interest earned till date. The amount was to be paid in
three instalments and shall be honoured accordingly. A total amount of
32,66,000/-

with

interest

was

being

returned

through

post-dated

cheques.However, the provided cheques were bounced, and evidence for the
same was provided.
18.

The provision under section 18 clearly shows the remedy/relief to the

allottee for the refund of the amount, compensation & interest for delayed
possession in case the promoter fails to complete the flat or is unable to
deliver possession of the flat as per the Agreement of sale.
Section 18 read as 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.

19.

In the present case, the Agreement of sale was signed on 06.04.2021,

and the promoter was supposed to register the plot in the said project as soon
as the mortgage is released, but the same is not handed over, rather, he has
sold it to someone else. Since the said plot has already been sold to some
other allottee and the complainant wishes to withdraw from the project,
complainant is entitled to get the return of the advance amount along with
applicable interest under the provision of section 18 of the RE(R&D) Act read
with Rule 15.
20.

The rate of interest shall be calculated as per the provision of Rule 16 of

the Telangana Real Estate (Regulation and Development) Rules, 2017, from
the date on which such refund becomes due i.e. from 03.05.2023.
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%.
Rule 16 and 17 read as below:
15. Interest payable by promoter and allottee.— The rate of interest payable
by the promoter to the allottee or by the allottee to the promoter, as the case
may be, shall be highest Marginal Cost of Lending Rate of State Bank of India
plus two per cent. Provided that in case the Marginal Cost of Lending Rate of
State Bank of India is not in use it would be replaced by such benchmark
lending rates which the State Bank of India may fix from time to time for
lending to the general public.

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16. Timelines for refund.— Any refund of monies along with the applicable
interest and compensation, if any, payable by the promoter in terms of the Act
or the rules and regulations made thereunder, shall be payable by the
promoter to the allottee within ninety days from the date on which such
refund along with applicable interest and compensation, as the case may be,
becomes due.

F. Directions of the Authority:
21.

In view of the above, the Authority directs the respondent to return the

amount of Rs. 22,61,000/- along with applicable interest of 10.65% per
annum from 03.05.2023, which is the date on which such refund becomes
due, within a period of 45 days from the date of issue of this order.
22.

With

regard

to

compensation,

the

complainant

did

not

seek

compensation in its original complaint. However, in its rejoinder, the
complainant requested the Authority to award compensation, and there are
no submissions from the respondent regarding the compensation claim. The
complainant is at liberty to approach the Adjudicating Officer under Section
71 of the RE(R&D) Act by filing a separate complaint in Form "N" under Rule
35 of the Telangana RE(R&D) Rules, 2017.
23.

With the above order, the complaint petition dated 30.08.2023 is hereby

disposed of.
24.

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 until 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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