- Ordered to repay Rs 54.26 lakh with interest
The Telangana Real Estate Regulatory Authority has ordered the promoters of Sheshadri Silver Oak in Boduppal to refund Rs 54.26 lakh with 10.75% annual interest within 30 days for violating the RERA Act.
The buyer had signed a sale agreement for a 3BHK flat in 2022 and paid over Rs 54 lakh. However, the promoters collected the money without registering the project under RERA, and construction never even began. The refund cheque issued to the buyer bounced.
Despite mandatory registration requirements, the project was not registered. Collecting more than 10% of the sale amount as advance under an unregistered agreement is a violation of Section 13(1) of the RERA Act. TG RERA also noted that this same project had faced penalties before.
The authority warned that additional penalties would be imposed if the refund is not made within 30 days, and it made it clear that such fraudulent activities will not be tolerated in order to protect homebuyers.