Order Complaint No.1684 of 2023

BEFORE TELANGANA STATE REAL ESTATE REGULATORY AUTHORITY
[Under the Real Estate (Regulation and Development) Act, 2016]
COMPLAINT NO.1684 OF 2023
21st Day of March, 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 Bharatha Raveender

…Complainant

Versus

M/s Krithika Infra Developers
Represented by its Managing Director,
Sri D. Srikanth & Smt. Radha Bhukya

…Respondent

The present matter filed by the Complainant herein came up for hearing
on 02.01.2024, 31.01.2024 and 27.02.2024 before this Authority in the
presence of the Complainant in person and the Respondent is absent though
counter has been filed on its behalf 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 paid an amount of Rs.32,00,000/-

(Rupees Thirty-Two Lakhs Only) as advance to purchase a flat at Regal Oak,
Saidabad. However, the Complainant decided to drop from buying the same on
account of certain financial problems and therefore sought to withdraw from
the transaction. He issued a letter to the Respondent in this regard to refund
his entire monies, however the Respondent refunded only Rs.50,000/- (Rupees
Fifty

Thousand

Only)

to

the

Complainant

and

remaining

balance

of

Rs.31,50,000/- (Rupees Thirty-One Lakhs and Fifty Thousand Only) is pending.
4.

Therefore, he prayed for refund of the above-mentioned amount.

B. Reply on behalf of the Respondent:
5.

Vide Reply dated 31.01.2024, the Respondent Builder submitted that

the Respondent started developing the multi-storied complex at Saidabad,
Hyderabad and Complainant approached Respondent Company to book flat on
28.11.2022 and paid advance amount of Rs.1,00,000/- (Rupees One Lakh
Only). As per the said agreement, the Complainant paid further amounts on
different dates paid, total amounting to Rs.32,00,000/- (Rupees Thirty-Two
Lakhs Only) out of total sale consideration of Rs.42,09,300/- (Rupees Forty-Two
Lakhs Nine Thousand and Three Hundred Only). That the construction work is
under progress and that the Complainant has visited the site and witnessed the
progress of the construction.
6.

The Respondent further submitted that as per the terms and conditions

of booking order "all refunds if any will be made without interest and refund will
be given after selling the same flat to other parties”. He added that after 2 (two)
2

months i.e., on 16.02.2023, the Complainant has approached the Respondent’s
office and gave a letter requesting to return the advance amount, as he decided
to drop the buying of flat due to financial problems. Therefore the Respondent
considered his application and subsequently paid Rs.50,000/- (Rupees Fifty
Thousand Only) on 17.11.2023 and balance amount is to be paid after
arranging the funds, since the cancelled flat has to be sold to third parties as
per the agreement. He, therefore, prayed that the complaint be dismissed.
D. Observations and Directions of the Authority
7.

This Authority has considered the material on record and the

submissions made by the Complainant as well as the Respondent in their
respective affidavits. As per Clause 7.5 of the Form of Agreement of Sale
annexed to Rule 38 of the Rules, 2017, as the cancellation is at the behest of
the Allottee i.e., the Complainant herein without any fault of the promoter, the
promoter/Respondent is entitled to forfeit the booking amount of Rs.1,00,000/(Rupees One Lakh Only) as has been mentioned in the Booking Form filed by
the Respondent.
8.

In view of the above facts and circumstances, while exercising powers

under Section 37 of the Act, 2016, this Authority directs the Respondent to
refund the remaining amounts of Rs.30,50,000/- (Rupees Thirty Lakhs and
Fifty Thousand Only) along with interest of 10.65% p.a. as per Rules, 2017
within 60 days. The said interest is applicable from 3 months after the date of
cancellation by the Complainant i.e., from 16.05.2023.

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9.

In lieu thereof, the present complaint stands disposed of. Parties are

hereby informed that non-compliance of the present Order shall attract
appropriate action under Section 63 of the Act, 2016.
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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