Order Complaint No.1592 Of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.1592 OF 2023
10th Day of April, 2024

Corum:

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

Sri Y. Eswar Rao

…Complainant
Versus

M/s GRR Realties
Represented by its Managing Director
Sri Gurram Prakash

…Respondent

The present matter filed by the Complainant herein came up for hearing
on 02.01.2024 and 30.01.2024 before this Authority in the presence of the
Complainant in person and the Respondent remained absent inspite of service
of notice and upon hearing the arguments, this Authority passes the following
ORDER:
2.

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 “Act”) read with Rule 34(1) of the Telangana Real Estate (Regulation
and Development) Rules, 2017 (hereinafter referred to as the “Rules”)
requesting appropriate action against the Respondent Builder.

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A. Brief facts on behalf of the Complainant:
3.

The Complainant submitted that he purchased flat No.310 at ‘Vasistha

Block’ from the Respondent Developer in 2016, which was supposed to be
handed over in 2018. They added that despite receiving the entire sale
consideration of Rs.14,00,000/- (Rupees Fourteen Lakhs Only), excluding
taxes, the Respondent Builder has failed to hand over the same before 2018 as
promised. The Complainant filed a copy of the registered sale deed dated
27.09.2016 bearing document No.10031/2016 which shows that the project
has DTCP approval vide B.P. No.41/2012/W dated 23.01.2012.
4.

As the Complainant has not received possession of their flat even after 8

(eight) years of making the payment, they sought for refund of the amounts
paid from the Respondent Builder.
B. Observations and directions of the Authority
5.

Notices were issued to both parties for hearing on 02.01.2024. Despite

being in receipt of the Notice, the Respondent failed to appear. The Complainant
appeared and reiterated the contents of the Complaint. As the Respondent
failed to appear, notice was issued again on 02.01.2024 for hearing on
30.01.2024. Despite being in receipt of the Notice, yet again, the Respondent
failed to appear.
6.

Meanwhile, to verify the veracity of claims made by the Complainant, an

inspection was conducted on the site situated at Survey No.156/A, of
Velugumatla Revenue Village, under Municipal Corporation limits of Khammam
Urban Mandal, Khammam District. Findings of the Inspection Report dated
03.02.2024 are as follows:
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a. The building permission was granted by the Regional Deputy Director,
Town Planning, Warangal vide BP No.41/2012/W, Dt.23.02.2012 in the
name of GRR Srinivasam in gated Community for constructions of
Ccllar+Stilt+ G + 4 Floors in Sy. No. 156/A, Velugumatla village within the
Khammam Municipal Corporation. This building is named as Vasista
Block.

b. The builder has constructed Cellar + Ground + 4 Floors consisting of 40
Flats.
c. The complainant Sri. Y. Eashwar Rao has purchased Flat No.108 in 1st
Floor during the year 2016 under an agreement to hand over possession
by December 2017. The purchaser /complainant informed that he has paid
total sale consideration amount of Rs.14,00,000/- (Rupees Fourteen Lakhs
Only).
d. The building is in skeleton stage with only slabs and walls and it is
informed that the construction made during the year 2016. The cellar and
stilt floors covered with debris and bushes.
e. The total building is in ruined stage having no doors, windows, flooring,
drainage system, electricity, water supply and others internal and external
facilities.
f. It appears that the builder / promoter has deceived not only the present
complainants but also other 38 flats purchasers.
7.

A clear interpretation of Section 3 makes it clear that projects for which

Occupancy Certificate is not obtained as on date of commencement of this Act,
have to mandatorily obtain registration before this Authority. In the absence of
such registration by the Respondent Builder and on account of no development
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of the Project as per inspection report, it is clear that the Respondent Builder
has violated provisions of Sections 3 and 4 and more specifically Section
11(4)(b) which mandates obtaining of Occupancy Certificate from concerned
competent authorities. Therefore, a penalty of Rs. Rs.5,94,594/- (Rupees Five
Lakhs Ninety-Four Thousand Five Hundred and Ninety-Four Only) has been
imposed on the Respondent Builder for violation of Sections 3 and 4 and
11(4)(b) for selling flats without obtaining RERA Registration and also for not
completing the construction and obtaining Occupancy Certificate, which shall
be payable within 30 days in favour of TS RERA FUNDS through Demand Draft
or online payment to A/c No.50100595798191, HDFC Bank, IFSC Code:
HDFC0007036.

8.

As far as the Complainant’s relief is concerned, as per the Inspection

Report, it is clear that the Respondent has failed in its obligation to handover
the Flat within the time stipulated in the sale deed dated 27.09.2016 bearing
document No.10031/2016 and therefore, the Complainant is entitled for
complete refund of amount paid along with interest as per Rules. Therefore, the
Respondent is hereby directed to cancel the registration of the flat No.310 at
‘Vasistha Block’ made in favour of the Complainant and refund an amount of
Rs.14,00,000/- (Rupees Fourteen Lakhs Only) along with such other additional
amounts paid by the Complainant for registration of the Sale Deed dated
27.09.2016 bearing document No.10031/2016 with interest at the rate of 10.65
% (8.65 + 2) as per Rules, 2017 from the date of the sale deed i.e., from
27.09.2016 till the date of payment made to the Complainant, within 30 days

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from the date of the receipt of this Order, failing which appropriate action under
Section 63 will be initiated against the Respondent.
9.

The complaint is accordingly disposed of.

10.

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) in accordance with Section 44 of the Act, 2016.

Sd/……………………………
Sri K. Srinivasa Rao,
Hon'ble Member,
TS RERA

Sd/……………………………………
Sri Laxmi Narayana Jannu,
Hon'ble Member,
TS RERA

Sd/………………………………………
Dr. N. Satyanarayana, IAS (Retd.),
Hon'ble Chairperson,
TS RERA

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