Order Complaint No.167 Of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.167 OF 2023
Day of February, 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 Ala Venkataswamy

…Complainant
Versus

M/s Greenmark Developers
Represented by its Managing Director

…Respondent

The present matter filed by the Complainant herein came up for hearing on
03.10.2023, 07.11.2023, 19.12.2023 and 09.01.2024 before this Authority in the
presence of the Counsel for Complainant, Sri Ravi Chandra S. P. Ghanta and the
Counsel for Respondent, Sri K. Shiva Kumar and upon hearing the arguments of
both the parties, 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 read with Rule (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.

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

The Complainant submitted that he is a senior citizen. During March, 2020

he, as a co-applicant with his son, Sri Ala Ravi Babu booked a flat in Block A, with

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Apartment No.9, 9th floor, in Mayfair Aparments situated in Survey No.376,
Gachibowli, Tellapur, Ramachandrapuram, Medak District – 502032 for a total sale
consideration of Rs.1,04,41,735/- (Rupees One Crore Four Lakhs Forty-One
Thousand Seven Hundred and Thirty-Five Only). The said Project is registered with
TS RERA Registration No.P01100000193.

4.

He submitted that he paid a token amount of Rs.3,00,000/- (Rupees Three

Lakhs Only) for booking/allotment of the said flat to the Respondent Builder who
duly acknowledged the receipt of the money by issuing booking allotment form
annexed with the present Complaint. On account of COVID-19, the Complainant’s
son, who resided in the US, lost his job and subsequently, on 08.05.2020, the
Complainant sought for cancellation of the allotment as the Complainant could not
meet with the Respondent Builder’s payment schedule provided to him on
13.03.2020. The Respondent Builder stated that the booking amount will be
forfeited against cancellation as per the terms of the booking and the same be
opened for the sale without any further notice.

5.

Therefore, the Complainant approached this Authority, praying for refund of

the booking amount i.e., Rs.3,00,000/- (Rupees Three Lakhs Only).

B. Reply on behalf of the Respondent:
6.

Per contra, the Respondent, vide its Reply dated 12.06.2023 submitted that

the Complainant, having full knowledge and awareness of the Project, upon
knowing the terms and conditions including the payment schedule towards
purchase of the said flat, booked Flat No. A-809, MAYFAIR APARTMENTS, situated
in Sy. No. 376, Gachibowli, Tellapur, Ramachandrapurm Mandal, Sanga Reddy

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District by paying Rs.3,00,000/- through bank cheque and upon clearance of the
same, the Respondent has issued receipt on 13.03.2020 vide receipt no. 1124.

7.

On 08.05.2020 through email, the Complainant requested for cancellation of

booking of the aforesaid flat and requested to refund the token amount of Rs.
3,00,000/- (Rupees Three Lakhs Only) due to COVID-19 pandemic and his son's
job loss. On 15.05.2020, head CRM of the Respondent Company , vide email,
stated to re-think about the cancellation of the said flat as the same was offered to
you with less price comparing in the same location and the increase in the
construction cost and the construction was going on. He further informed the
Complainant that, in case of cancellation the token/ booking amount will be
forfeited without any further notice.

8.

On 16.09.2020, vide email, the Complainant, himself admitted that, and

stated as "there is no agreement between us and in the absence of the agreement
we will not come under RERA provisions". He further submitted that it is settled
law that, the advance/booking/token amount will not be refunded and accorsingly
prayed to dismiss the complaint.

C. Observations of the Authority:
9.

Clause 7.5 of Annexure to Rule 38 of the Rules clearly provides that

“…where the allottee proposes to cancel/withdraw from the project without any fault
of the promoter, the promoter herein is entitled to forfeit the booking amount paid for
the allotment. The balance amount of money paid by the allottee shall be returned by
the promoter to the allottee within three months of such cancellation or at the time
that the Promoter is able to resell the said Apartment/Plot to another purchaser,
whichever is later”. As the Respondent had also duly informed the Complainant

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about such forfeiture, the same cannot be refunded in light of the above provision.
In lieu thereof, the complaint stands 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)
within 60 days from the date of receipt of this Order.

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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