Order Complaint No.152 of 2025

BEFORE TELANGANA REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
Complaint No. 152/2025/TG RERA
Dated: 02nd September 2025
Quorum:

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

Mansi Singh
Vineet Singh Ruhela
(R/o Flat No. E 1105, Sairam Towers, Manjeera Pipeline Road,
Hafeezpet, Hyderabad, Telangana - 500049)

…Complainant
Versus
M/s. Vasavi Realtor LLP,
(Rep by its Designated Partner, Yerram Vijay Kumar,
Vasavi Corporate,
H.No.8-2-703/1 and 8-2-703/7/1/A,
4th Floor, Vasavi Corporate Building, Amrutha Valley Apartments,
Road No. 12, Banjara Hills, Hyderabad, Telangana – 500034.)

…Respondent
The present matter file by the Complainant herein came up for hearing on
11.07.2025 before this Authority in presence of Complainant in person and Respondents
Counsels Sri D Madhav Rao and M.K.Joy Raj; upon pursuing the material on record and on
hearing arguments of the both the parties and having stood over for consideration till this day,
the following order is passed:

2.

ORDER
The present Complaint has been filed by the Complainant under Section 31 of the Real

Estate (Regulation & 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 “TG RE(R&D) Rules”) seeking appropriate relief(s) against the
Respondents.
A. The brief facts of the case, as stated by the Complainant, are as follows:
3.

It is submitted that the Complainants purchased a flat in the project “Vasavi Lake City

West” in July 2020, based on the advertisements, personal interactions with the marketing team,

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It is submitted that at the time of purchase, the promised handover date was August

2024 plus an additional six months, as indicated in the Agreement of Sale. The Complainants
proceeded with the agreed payments. However, the project was not completed within the
promised timeframe. It is further stated that, due to family needs, the Complainants expressed
their intention to upgrade their flat and inquired with the CRM, Sales team and project director,
Sri Kande Ramesh, regarding the reasons for the delay and the expected handover date. They
explained to the Complainants that a COVID extension of one year had been granted, and that
the entire project would be completed by 07.02.2025, as per RERA approval. They reassured
the Complainants by stating that they planned to obtain a partial Occupancy Certificate and
proceed with a tower-wise handover. Based on these assurances, the Complainants entered into
a new Agreement of Sale for the upgraded flat in June 2024, with a revised handover date of
August 2024, instead of August 2023, plus an additional six month.
5.

It is contended that despite these assurances, the project faced repeated and unjustified

delays and, as of February 2025, remained incomplete. The Respondent allegedly postponed
the handover dates on multiple occasions, provided vague reasons, and failed to communicate
a clear and firm timeline. Having already paid the full amount, the Complainant stated that this
delay caused uncertainty and financial distress, significantly impacting plans and investments.
6.

It is further submitted that as of January 2025, the project was only 60% to 70%

completed, with no major work carried out thereafter. Key aspects such as interior finishing,
common amenities, and supporting infrastructure remained incomplete. Despite multiple
follow-ups, the Respondent allegedly failed to provide any roadmap or completion schedule,
leaving the Complainant and other homebuyers frustrated and anxious. It is further submitted
that the lack of visible progress and absence of proper communication have further raised
doubts whether the Respondent is genuinely committed to complete the project.
7.

The Complainant alleged that the continued delay in possession constitutes a violation

of the provisions of the RE(R&D) Act, 2016, as the Respondent failed to deliver the project
within the stipulated timeline without valid justification. By collecting 100% payment upfront
and failing to fulfil contractual obligations, the Respondent has allegedly breached the statutory
requirements. The Complainant stated that the delay has caused financial strain, mental stress,

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Accordingly, the Complainant sought the following reliefs:
i.

To direct the Respondent to complete the construction and hand over possession of the
flat at the earliest. Seeking immediate action to ensure that the remaining work is
completed within a fixed and enforceable timeframe, failing which strict penalties
should be imposed on the builder.

ii.

To direct the Respondent to pay interest on the total amount paid by the Complainant
from the promised possession date of August 2024 until the actual date of handover
along with interest at the prescribed rate under RERA for the entire delay period.

iii.

To direct the Respondent to pay compensation for the undue stress, inconvenience, and
financial losses incurred as a result of the prolonged delay.

iv.

Compensation for the Kitchen Slab promised under the Agreement of Sale and
brochure, which the Respondent has failed to provide.

C. Counter filed by the Respondent:
8.

It is submitted by the Respondent that the complaint is not maintainable either in law

or on facts and is liable to be dismissed. It is submitted that the complainant has not followed
the remedies available under the Agreement for Sale for resolution of disputes before
approaching this Hon’ble Authority. Further, no prior legal notice was issued before filing this
complaint, which itself renders the application defective and not maintainable.
9.

It is submitted that the project “Lake City-West” was developed lawfully after obtaining

rights from the landowners under registered documents, covering 43,298.17 sq. yds. While
requisite land conversion permissions and building permissions for construction of multistoried apartments were obtained on 07.02.2020. The project consists of seven towers (cellars
+ ground + 14 upper floors), and a clubhouse (stilt + five upper floors). The project was duly
registered with this Authority vide Registration No. P02500001819 dated 20.03.2020.

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It is further submitted that the Complainant was allotted an apartment in the project

vide booking dated 01.07.2020, and was allotted an apartment No. W.20710 on the 7th Floor
of Tower 2, admeasuring 1915 sq. ft., along with car parking, for a total consideration of Rs.
1,26,78,150/-. The Agreement of Sale sets out the carpet area, balcony/veranda area, common
area, and undivided share of land. The Complainant has paid Rs. 73,56,979/- towards the sale
consideration, while the balance amount remains payable in accordance with the agreed
payment schedule.
11.

It is submitted that as per Clause 7 of the Agreement, the Respondent was obligated to

hand over possession of the flat and common areas by 31.08.2024, subject to extension in the
event of force majeure. The Agreement itself clearly records that timely delivery is the essence
of the contract but also recognises that the period of completion shall stand extended to the
extent of delay caused by force majeure conditions, during which period the allottee is not
entitled to claim compensation.
12.

It is submitted that the complainants have not come before this Hon’ble Authority with

clean facts but with an ulterior motive to make unlawful gain and that there has been material
suppression of facts of the case with regard to the claim and the relief sought therein.
13.

It is further stated that COVID-19 is a force majeure event duly recognized under law,

and hence the timelines stood extended. The Respondent contended that the COVID-19
pandemic, subsequent lockdowns, and migration of labourers had severely impacted
construction work. The Respondent further relies on the orders of the Hon’ble Supreme Court
in Suo Motu Writ Petition No. 3 of 2020, whereby the period from 15.03.2020 till 28.02.2022
was excluded for the purposes of computation of limitation across various statutes. It is
contended that the extension of time for completion of the project was not only factually
justified but also recognised in law.
14.

In addition to COVID-19, the Respondent submits that unforeseen site conditions such

as rocky terrain requiring manual excavation further delayed the project. Owing to restrictions
on blasting due to the residential nature of the surrounding locality, excavation could only be
done manually, which compounded the delay. These challenges were communicated to all
allottees through regular updates and meetings.

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The Respondent also submits that certain third-party disputes adversely impacted the

project timelines. These include cases such as RERA Case No. 190/2020, W.P. Nos.
2694/2021, 13898/2022, 33433/2023, W.A. No. 584/2023, SLP Nos. 9694–9695/2023, and
W.P. No. 26301/2024, some of which are still pending. While most have been resolved, their
pendency at various points of time hindered the smooth progress of the project.
16.

It is contended that the project has been executed strictly in accordance with approved

plans and specifications, and any clerical or typographical errors in the Agreement of Sale
cannot be construed to create liability. It is the case of the Respondent that more than 90% of
the project construction is completed and the project is presently in its final finishing stage. An
extension of registration has already been granted by this Authority till 07.02.2026, within
which period the Respondent undertakes to deliver possession of the apartments to all allottees.
Communications have also been issued to purchasers for payment of balance amounts, as
completion is nearing.
17.

With regard to the claims for interest and compensation, the Respondent submits that

in view of the force majeure conditions, no such relief is available to the Complainant under
law. Section 6 of the Act specifically contemplates force majeure events such as natural
calamities and other circumstances beyond the control of the promoter. The Respondent
submits that the COVID-19 pandemic, together with the extraordinary circumstances outlined
above, clearly falls within the scope of force majeure.

D. Points for Consideration:
18.

Upon a careful perusal of the record and the submissions advanced by both parties, oral

as well as written, this Authority is of the view that the following issues arise for determination
in the present complaint:
1. Whether the present complaint is maintainable before this Authority?
2. Whether the Complainants are entitled to the reliefs as prayed for?
E. Observations of the Authority:
Point 1:
19.

The Respondent has raised an objection as to the maintainability of the present

complaint on the ground that the Complainants failed to first resort to the contractual dispute

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The Authority finds this objection untenable for the following reasons:

21.

The relevant Dispute Resolution clause in the Agreement of Sale is reproduced below

for ready reference:
33. Dispute Resolution clause in the Agreement of sale executed between the
parties, the said clause stated that all or any disputes arising out ot touching
upon or in relation to the terms and conditions of this Agreement, including
the interpretation and validity of the terms thereof and the respective rights
and obligations of the Parties, shall be settled amicably by mutual discussion,
falling which the same shall be settled through adjudication officer appointed
under the Act.

22.

It is clear from the above that the clause only requires the parties to attempt an amicable

settlement by mutual discussion. Such a clause is at best directory and cannot oust or restrict
the statutory jurisdiction of this Authority.
23.

Section 79 of the RE(R&D) Act expressly bars the jurisdiction of Civil Courts in respect

of any matter which this Authority, the Adjudicating Officer, or the Appellate Tribunal is
empowered to determine. Likewise, Section 88 clarifies that the provisions of the RE(R&D)
Act are in addition to, and not in derogation of, other laws. Thus, the intention of the legislature
is that remedies under this beneficial legislation must remain open to allottees, irrespective of
any private clause for amicable settlement.
24.

Even in cases where agreements contained arbitration clauses (which is not the case

here), the Hon’ble Supreme Court and the Hon’ble NCDRC have consistently held that such
clauses cannot circumscribe the jurisdiction of consumer fora or statutory authorities
constituted under special enactments.
25.

In National Seeds Corporation Ltd. v. M. Madhusudhan Reddy (2012) 2 SCC 506, the

Supreme Court held that remedies under special statutes are in addition to, and not in derogation
of, other remedies. For ready reference, the relevant extract is reproduced below:
*“49. Support to the above view is also lent by Section 79 of the recently enacted Real
Estate (Regulation and Development) Act, 2016 (for short "the Real Estate Act").
Section
79
of
the
said
Act
reads
as
follows:‘79. Bar of jurisdiction - No civil court shall have jurisdiction to entertain any suit or
proceeding in respect of any matter which the Authority or the adjudicating officer or
the Appellate Tribunal is empowered by or under this Act to determine and no

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26.

Similarly, in Aftab Singh &Ors. v. Emaar MGF Land Ltd. &Ors. (Consumer Case No.

701 of 2015, decided on 13.07.2017), it was held that arbitration clauses in builder-buyer
agreements cannot oust the jurisdiction of consumer fora. The said view was later upheld by
the Hon’ble Supreme Court in Civil Appeal Nos. 23512–23513 of 2017. The relevant para
reads:
25. This Court in the series of judgments as noticed above considered the provisions
of Consumer Protection Act, L986 os well as Arbitration Act, 1996 and laid down
that complaint under Consumer Protection Act being a special remedy, despite
there being an arbitration agreement the proceedings before Consumer Forum have
to go on and no ercor committed by Consumer Forum on rejecting the application.
There is reason for not interjecting proceedings under Consumer Protection Act on
the strength an arbitration agreement by Act, 1996. The remedy under Consumer
Protection Act is a remedy provided to a consumer when there is a defect in any
goods or services. The complaint means any allegation in writing made by a
complainant has also been explained in Section 2(c) of the Act. The remedy under
the Consumer Protection Act is confined to complaint by consumer as defined under
the Act for defect or deficiencies caused by a service provider, the cheap and a quick
remedy has been provided to the consumer which is the object and purpose of the
Act as noticed above."

27.

In the present matter, there is only a clause requiring amicable discussion before

invoking remedies. Such a clause is directory at best, and cannot override or defeat the statutory
right of the Complainant to approach this Authority under the RE(R&D) Act. Accordingly, this
Authority has no hesitation in holding that the Complainant is well within its rights to approach

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The Complainants have sought relief on the ground that there has been an inordinate

delay in handing over possession of the subject flat.
29.

It is the case of the Complainants where Agreement of Sale was executed in the year

2023 between the parties, clearly stipulated that possession of the subject flat would be handed
over by 31.08.2024, with a grace period of six months, ending on 28.02.2025. The Respondent
has failed to hand over possession even as on date. Further, although the project was registered
with TG RERA up to February 2025 and later extended until 07.02.2026, the project remains
incomplete.
30.

The Complainants submit that the Respondent has repeatedly given false assurances of

completion, while allottees continue to suffer. The Respondent, conversely, attributes the delay
to the Covid-19 pandemic, claiming force majeure, citing the nationwide lockdown beginning
March 2020, the impact on migrant labour, and consequential delays. The Respondent further
cites rocky terrain at the site, third-party disputes, and typographical errors in the possession
date as additional justifications.
(i) Whether the Covid-19 pandemic can be taken as a valid shield by the Respondent in the
present case?
31.

This Authority finds no merit in such a contention. The revised Agreement of Sale was

executed in the year 2023, well after the onset and subsiding of the Covid-19 pandemic. The
Respondent, being fully aware of the prevailing circumstances, nevertheless executed the
revised Agreement by specifically assuring completion of the project by August 2024. Having
consciously undertaken such commitment, the Respondent cannot now, with retrospective
justification, rely on Covid-19 as a defense to escape its contractual and statutory obligations.
Such conduct clearly amounts to holding out false assurances with mala fide intent.
32.

It is a settled principle that once a promoter has chosen to register a project and enter

into binding contractual commitments with allottees, he does so with full knowledge of the
risks, constraints, and challenges of the market. At the time of entering into the Agreement of
Sale with the present Complainant, the Respondent was already aware of the Covid-related
disruptions, as well as the Government notifications granting moratoriums for project
completion timelines. Despite this knowledge, the Respondent chose to provide a specific
assurance of delivery by August 2024.

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This Authority aligns with the observations of the Hon’ble Bombay High Court in

Neelkamal Realtors Suburban Pvt. Ltd. &Anr. vs. Union of India &Ors. [2017 SCC OnLine
Bom 9302], wherein at para 119 it was categorically observed:
"While the proposal is submitted, the Promoter is supposed to be conscious of
the consequences of getting the project registered under RERA. Having
sufficient experience in the open market, the Promoter is expected to have a
fair assessment of the time required for completing the project…".

34.

The above dictum fortifies the principle that the promoter, being structurally at an

advantageous position with respect to project information and market realities, is under a
statutory duty to provide realistic timelines. The framework of the Real Estate (Regulation and
Development) Act, 2016 reinforces this obligation by mandating timely completion and
possession within the period stipulated in the Agreement of Sale.
35.

Therefore, the plea of Covid-19 as a force majeure defence in the present case is wholly

untenable. The Respondent, having executed the Agreement of Sale in 2022 with specific
possession timelines, cannot now seek to retrospectively attribute delays to the pandemic.
Accordingly, this Authority holds that the reliance on Covid-19 as a shield stands rejected.
(ii) Extension of Registration
36.

The Respondent has further contended that, since extensions have been granted by this

Authority, the project timeline now stands extended up to February 2026, and therefore
possession shall be delivered by then. The Complainants, however, have questioned the validity
and effect of such extensions.
37

At the outset, it must be clarified that under the scheme of the RE(R&D) Act.

“An Act to establish the Real Estate Regulatory Authority for regulation and promotion
of the real estate sector and to ensure sale of plot, apartment or building, as the case
may be, or sale of real estate project, in an efficient and transparent manner and to
protect the interest of consumers in the real estate sector and to establish an
adjudicating mechanism for speedy dispute redressal and also to establish the
Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real
Estate Regulatory Authority and the adjudicating officer and for matters connected
therewith or incidental thereto.”

38.

The paramount objective is twofold: protection of consumer interest, and ensuring

completion of projects in an efficient manner. Denial of extension during the Covid-19
disruption would have resulted in projects being stalled, to the grave prejudice of allottees. It

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In the present matter, it is evident that the Respondent has unilaterally revised

possession timelines first to February 2024, and thereafter to February 2026 due to the
extension taken without consultation or consent of the Complainants. Such unilateral revisions
are impermissible. The Hon’ble Bombay High Court in Neelkamal Realtors Suburban Pvt.
Ltd. vs. Union of India &Ors. [2017 SCC OnLine Bom 9302], while upholding the
constitutional validity of RERA, categorically observed:
Para 119 “The RERA does not contemplate rewriting of contract between the
flat purchaser and the promoter."
Para 256 of this Judgment further clarifies that
“by giving opportunity to the promoter to prescribe fresh timeline under Section
4(2)(l)(C), he is not absolved of the liability under the agreement for sale”

41.

The above dicta makes it abundantly clear that any extension granted by the Authority,

or revised timelines uploaded on the TG RERA project registration portal, do not ipso facto
alter or bind the allottees’ contractual rights. The agreed date of possession remains as
stipulated in the Agreement for Sale, and unilateral extensions by the promoter cannot be
foisted upon allottees to their detriment.
42.

Accordingly, this Authority holds that the revised possession dates mentioned by the

Respondent, whether while seeking extensions before the Authority or as updated on the
registration portal, cannot be treated as binding on the Complainants.

(iii)Relief under Section 18 of the RE(R&D) Act:
43.

It is observed that there exists a discrepancy in the amounts stated to have been paid by

the parties. The Complainants assert that they have discharged the entire consideration of
approximately ₹1,19,80,825/–, substantiating the same with payment receipts and asserting that
the payments were made diligently and without default. The Respondent, on the other hand,

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The Respondent’s contention that 90% work is complete and that the Complainants

have paid only a portion of the consideration is wholly unsustainable. The Complainants have
already paid over 90% of the agreed consideration as per their averments. Despite receiving
such substantial sums, the Respondent has failed to honour its contractual obligations. It is
manifest that the Respondent gave false assurances, being fully conscious of the market
situation, yet assuring dates of completion that it had no capacity to honour. More than months
has elapsed beyond the stipulated date, yet the project is neither complete nor possession
handed over.
45.

The Respondent further seeks to shift the burden on the complainant by contending that

the balance amount is unpaid. This plea is untenable. The law does not permit a defaulter to
take advantage of its own breach. As held by the Hon’ble Supreme Court in Kusheshwar
Prasad Singh v. State of Bihar [Civil Appeal No. 7357 of 2000]:
It is settled principle of law that a man cannot be permitted to take undue and
unfair advantage of his own wrong to gain favourable interpretation of law. It is
sound principle that he, who prevents a thing from being done shall not avail
himself of the non-performance he has occasioned. To put it differently, "a
wrongdoer ought not to be permitted to make a profit out of his own wrong.

46.

In this context, it is pertinent to note that the Agreement of Sale linked the payment

schedule to the progress of construction. While the allottees are indeed bound to adhere to the
agreed payment plan, such obligation arises only when the promoter simultaneously fulfils its
reciprocal obligation of executing construction in line with the assured progress. In the absence
of such progress, the Respondent cannot insist upon further payments as a condition to claim
relief.

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Section 18 of the RE(R&D) Act is categorical and unconditional. It does not make the

grant of interest contingent upon the quantum of sale consideration paid, nor does it provide
any defence to a defaulting promoter. Once delay in handing over possession is established, an
allottee who elects to remain in the project is entitled to interest for every month of delay,
irrespective of whether part or whole of the consideration has been paid, provided that the
payments already made are in accordance with the Agreement of sale. The Respondent’s plea
that only “partial sale consideration” has been paid and hence interest cannot be granted is
therefore vague, misconceived, and contrary to the express mandate of the statute.
48.

Now, Section 18 of the RE(R&D) Act is categorical:
(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,
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 that 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.
(2) The promoter shall compensate the allottees in case of any loss caused to
him due to defective title of the land, on which the project is being developed or
has been developed, in the manner as provided under this Act, and the claim for
compensation under this subsection shall not be barred by limitation provided
under any law for the time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under
this Act or the rules or regulations made thereunder or in accordance with the
terms and conditions of the agreement for sale, he shall be liable to pay such
compensation to the allottees, in the manner as provided under this Act.

49.

This statutory right of allottee is unqualified and absolute. Attention is drawn to the

decision of the Hon'ble Supreme Court of India in Civil Appeal Nos. 3581-359 of 2022, Civil
Appeal Diary No. 9796/2019, M/s Imperia Structures Limited vs. Anil Patni & Others,
wherein it was held:
"In terms of Section 18 of the RERA Act, if a promoter fails to complete or is
unable to give possession of an apartment by the date specified in the agreement,
the promoter would be liable, on demand, to return the amount received in respect
of that apartment if the allottee wishes to withdraw from the project. Such a right
of the allottee is 'without prejudice to any other remedy available to him'. This

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50.
Similarly, in Civil Appeal Nos. 6745-6749 of 2021, M/s Newtech Promoters and
Developers Private Limited vs. State of UP & Others, the Hon’ble Supreme Court observed:
"Section 18(1) of the Act spells out the consequences if the promoter fails to
complete or is unable to give possession of an 9 of 10 apartment, plot, or
building in terms of the agreement for sale. The allottee/home buyer holds an
unqualified right to seek a refund of the amount with interest as prescribed."

51.

Further, as earlier observed, the Hon’ble Bombay High Court in Neelkamal Realtors

Suburban Pvt. Ltd. v. Union of India [(2017) SCC Online Bom 9302] clarified that RERA
registration or its extension cannot rewrite the contract between parties. The date assured under
the Agreement of Sale, executed with the allottee’s consent, shall prevail. Thus, the Respondent
is bound by Section 11(4)(a) of the RE(R&D) Act, which mandates adherence to the terms of
the Agreement of Sale.
52.

At the same time, if the Complainant has indeed defaulted in adhering to the payment

schedule, the Respondent is not without remedy. Sections 19(6) and 19(7) of the Act confer
upon the promoter a right to claim interest for delayed payments, as per Rule 15 of the
Telangana RE(R&D) Rules, 2017. Nevertheless, such entitlement shall be subject to the
Respondent producing cogent and substantive documents demonstrating both the stage-wise
progress of construction and the corresponding default, and not merely based on unilateral
assertions.
53.

In the present case, this Authority finds the Respondent in clear breach of both statutory

and contractual obligations. The Complainant is therefore entitled to interest at the prescribed
rate for the entire period of delay, i.e., from 01.03.2025 until the actual date of handing over
possession. As regards claims of compensation, this Authority notes that jurisdiction for
adjudicating compensation lies with the Adjudicating Officer under Section 71 of RE(R&D)
Act with Form ‘N’. The Complainant is at liberty to pursue such remedy separately..
54.

Accordingly, while the Complainant is entitled to relief under Section 18 of the

RE(R&D) Act, this entitlement is subject to the reciprocal statutory duty of the Complainant to
discharge any outstanding amounts under the payment plan, if not already paid. Compliance
on both sides is essential to ensure balance of obligations and timely delivery.
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This Authority cannot remain oblivious to the larger pattern of violations. It is noted

with grave concern that more than fifty complaints have already been received against this very
Respondent in respect of the subject project. Such repeated defaults and false assurances strike
at the very root of the confidence that homebuyers are entitled to repose under the protective
framework of the RE(R&D) Act.
56.

The Statement of Objects and Reasons of the RE(R&D) Act explicitly emphasizes

“greater accountability towards consumers and to inject transparency, efficiency, and
discipline in the real estate sector”. The conduct of the Respondent herein is in gross derogation
of that legislative mandate. If such violations are permitted to persist, the very soul of the Act
would stand diluted and the protection promised to allottees rendered illusory.
57.

Accordingly, this Authority hereby sternly warns the Respondent promoter that any

further default, non-compliance, or failure to deliver possession within the assured statutory
timelines or any fresh grievances brought to notice by allottees shall invite invocation of
Section 63 of the RE(R&D) Act.
58.

This Authority shall not hesitate to take the strictest view in future, for the Act was

enacted not as a mere regulatory framework but as a beneficial legislation to protect innocent
homebuyers from the very malaise exemplified by the conduct of this Respondent.
59.

The Respondent is hereby directed to complete the project and hand over possession to

the Complainants within the stipulated period. It is further clarified that if the Complainants
have defaulted in making payments as per the agreed schedule, the Respondent shall be entitled
under Section 19(6) of the Act to claim interest on such delayed payments, provided that it
substantiates such claim with credible documentary evidence of both construction progress and
corresponding default.
60.

In the event the Complainants have defaulted in making payments as per the agreed

schedule, the Respondent shall be entitled, under Section 19(6) of the Real Estate (Regulation
and Development) Act, 2016, to claim interest on such delayed payments in accordance with
Rule 15 of the Telangana Real Estate (Regulation and Development) Rules, 2017.
Nevertheless, such entitlement shall be subject to the Respondent producing cogent and
substantive documents demonstrating both the stage-wise progress of construction and the
corresponding default, and not merely based on unilateral assertions.

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The Complainants are, in turn, directed to discharge any balance amounts due under the

agreed payment schedule, if not already paid. Mutual compliance is essential to ensure timely
completion and delivery of the project.
G. Directions of the Authority:
62.

In view of the findings and observations recorded hereinabove, this Authority proceeds

to issue the following directions:
a. The preliminary objection raised by the Respondent regarding the maintainability of
the complaint on account of the Dispute Resolution Clause in the Agreement of Sale
stands rejected. The complaint is maintainable before this Authority.
b. The Respondent’s reliance on the Covid-19 pandemic as a ground of force majeure is
held untenable, since the Agreement of Sale was executed after the subsiding of the
pandemic and with full knowledge of the prevailing circumstances.
c. The extension of registration taken by this Respondent cannot dilute the contractual
rights of the Complainant under the Agreement of Sale. The date of possession as
stipulated in the Agreement shall prevail.
d. The Respondent is held liable for failure to hand over possession of the subject flat by
the agreed date i.e., 28.02.2025 (inclusive of grace period).
e. The Complainants are entitled to interest at the rate of 10.85% per annum (being SBI
MCLR + 2% as per Rule 15 of the TG RE(R&D) Rules, 2017), computed on the
amounts actually paid by the Complainants, with effect from 01.03.2025 until actual
handing over of lawful possession. The exact computation shall be subject to
verification of such payments by the Respondent at the stage of effecting payment. The
Respondent shall pay the arrears accrued up to the date of this Order within sixty (60)
days, and shall thereafter continue to pay the accruing interest on a monthly basis, on
or before the 10th day of each succeeding month, until possession is delivered.
f. Insofar as compensation is concerned, the Complainant is at liberty to pursue
appropriate proceedings before the Learned Adjudicating Officer under “Form N”.
g. The Respondent is hereby directed to complete the project forthwith and hand over
possession to the Complainants within the statutory timelines.
h. The Complainants are directed to pay the balance consideration strictly in accordance
with the agreed payment schedule. In the event of any default in adhering to such
schedule, the Respondent shall be at liberty to claim interest on the delayed amounts,

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Having regard to the repeated defaults and the large number of complaints already

pending against this Respondent in the same project, this Authority sternly warns the
Respondent that any further delay, non-compliance, or grievance brought to notice by allottees
shall invite section 63 of the RE(R&D) Act.
64.

The complaint is accordingly allowed in part, in terms of the above directions.

65.

Failure to comply with above said directions by the Respondent shall attract penalty in

accordance with Section 63 of the RE(R&D) Act, 2016
66.

As a result, the complaint is disposed of accordingly. No order as to costs.

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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