Telangana-RERA orders four builders to refund ₹60.22 lakh with 10.85% annual interest

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Telangana Real Estate Regulatory Authority (TG-RERA) took action against four builders. | Photo Credit: GETTY IMAGES

A homebuyer paid ₹22.22 lakh but never got a flat. Three investors put ₹38 lakh into a commercial property but were left waiting for possession. In another case, buyers of villas in a gated community approached the regulator over incomplete amenities and discrepancies between what was advertised and what was approved. Taking up these separate complaints, the Telangana Real Estate Regulatory Authority (TG-RERA) has ordered two Hyderabad-based developers to refund a combined ₹60.22 lakh with 10.85% annual interest, imposed a ₹20.05 lakh penalty on another and initiated penalty proceedings against fourth.

In four separate orders dated November 10, the authority examined complaints involving Modi Builders and Infrastructures Private Limited, Bhuvanteza Infra Projects Private Limited, Starlite Global Enterprises (India) Limited and Jayathri Infrastructure India Private Limited.

In the case involving Bhuvanteza Infra Projects, complainant Vinukonda Ravi said that he had entered into an agreement for the purchase of a flat in the developer’s Happy Homes Phase-II project at Bommarasipeta in Shamirpet mandal in October 2021, for a consideration of ₹20.79 lakh. The developer had agreed to complete construction and hand over possession within 36 months, with an additional grace period of six months.

Citing delays attributed to the COVID-19 pandemic, the developer asked the buyer to shift to another flat in Happy Homes Phase-I and collected an additional ₹1.43 lakh. Despite receiving the entire ₹22.22 lakh, the developer neither commenced construction nor delivered the flat. 

TG-RERA in its order observed that the project had not been registered with the authority and that the developer had not obtained the requisite statutory approvals or commenced lawful construction. Holding that the buyer was entitled to withdraw from the project, TG-RERA directed Bhuvanteza Infra to refund the entire ₹22.22 lakh with interest at 10.85% per annum.

In another case involving Jayathri Infrastructure India Private Limited, three complainants, M. Suresh, M. Dinesh and M. Ramesh, said they had invested ₹38 lakh in a commercial real estate project called Western Waves at Nanakramguda in Serilingampally mandal. Under a memorandum of understanding executed on March 25, 2021, they were promised a semi-finished commercial unit measuring 500 square feet of built-up area, along with an undivided share of land measuring 11.5 square yards for possession by December 2024. Despite receiving the entire sale consideration, the developer failed to complete the project and hand over the commercial unit.

The authority noted that the project was not registered with TG-RERA and that a similar complaint involving the same developer and project had earlier resulted in an order directing a refund and imposing a penalty of ₹5 lakh for non-registration. TG-RERA directed Jayathri Infrastructure to refund the entire ₹38 lakh with interest at 10.85% per annum.

The proceedings against Modi Builders and Infrastructures Private Limited concerned the Golden County project in Rampally Dayara, Keesara mandal, where villa owners and their association had raised concerns over incomplete amenities and alleged discrepancies in the project’s development and marketing.

The complainants alleged that the project had been marketed as a luxury villa gated community, with promises of a clubhouse, swimming pool, gymnasium, sports facilities, landscaped parks and other amenities. However, several facilities remained incomplete or unusable even after residents had occupied the villas in 2021. They also alleged that ₹5 lakh was collected individually towards the clubhouse and amenities between 2019 and 2023, without the promised facilities being delivered.

TG-RERA found that the developers had obtained HMDA layout approval and RERA registration for a plotted development but had advertised and marketed the project as ‘Golden County Luxury Villas’. The authority directed the developers to pay a penalty of ₹20.05 lakh.

In the fourth case, TG-RERA initiated action against Starlite Global Enterprises (India) Limited over its Starlite Serena project in Kondapur. Six members of a family had approached the authority alleging that the project was being developed and marketed on land that included a portion of their property in Kondapur, where ownership disputes were already pending before civil courts.

TG-RERA held that the company had violated Section 3(1) of the RERA Act by marketing an unregistered project and directed the authority’s Secretary to initiate steps for imposing a penalty under Section 59.

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