TGRERA imposes Rs 12.32 lakh penalty to Hyderabad-based realtor for 9 year delay in completing villa

TGRERA fined Rs 12 lakh and ordered to complete and hand over villa to complainant. The Complainant was also ordered to pay the balance amount to the builder

Hyderabad: The Telangana State Real Estate Regulatory Authority (TGRERA) has imposed a fine of Rs 12, 32,527 on a builder for violating the stipulated rules and regulations format of the Agreement of Sale, while selling an Villa No.113 located at Tellapur, Hyderabad, in October 2014.

The penalty has been imposed for violation of Sections 3 & 4 of the Real Estate (Regulation and Development) Act, 2016. The penalty has to be paid by the builder, within 30 (thirty) days payable within 30 days in favor of TG RERA FUND.

The order was delivered by the three-member panel led by Chairman Dr N Satyanarayana and members K Srinivasa Rao and Laxmi Narayana Jannu in complaint No 61 OF 2024.

The two complainants Neelima Vanamala and Srikanth Leburu, were approached by the TGRERA against the builder Sankalp Infra Projects Pvt. Ltd. The duo was booked a Villa No.113 in the project named Aakriti VIVA, located at Tellapur, Hyderabad, in October 2014. The builder sold the villa for a total sale Rs.73, 41,000 by executing an agreement of sale and construction agreement followed by a registered sale deed dated 27.01.2015.

The builder was supposed to hand over the Villa by completing the rest of the construction of civil works in Villa and also finishing the roads and other common area works as per the agreement on or before 30.04.2016. But the builder failed to deliver Villa, which led to an abnormal delay of 9 years.

In fact, the complainants have paid Rs.66,48,140 as against the total consideration leaving balance payable is only 10%, i.e., Rs 6,92,852.

Here are the two key directions of the TGRERA authorities issued to the complainants and builder. The TGRERA has clearly stated that as the Occupancy Certificate (OC) for the Villa is not yet procured and the project is not yet complete, the builder should not to advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any unit in the Project – SANKALP ARV VIVA without registering the real estate project with this Authority failing which, appropriate action under Sections 59(2) and 63 will be initiated against the builder.

TGRERA authorities also directed the complainants that they have to pay the remaining balance sale consideration as per Agreement of Sale executed between the builder and complainants along with interest at the rate of 11.10% per annum in accordance with Rule 11 of the Rules, 2017 from the date on which such payment fell due until the total consideration is paid within a period of 30 days.