The Telangana Real Estate Regulatory Authority (TG-RERA) has provided relief to a homebuyer who paid a substantial amount for a flat but waited for years for possession. The authority directed the developer to pay ₹1 lakh as compensation for the mental agony suffered by the buyer, along with ₹20,000 towards legal expenses.
Vamsidhar Mothipalli, who resides in the US, entered into an agreement on March 23, 2018, to purchase a 2,125 sq. ft. flat on the 11th floor of Block-B in Aditya Capital Heights, Hafeezpet. The total agreed value of the flat was ₹1,02,62,500, including two car parking spaces. The buyer stated that he had paid ₹85,55,367 so far.
According to the buyer, he had opted for a ‘pre-EMI’ scheme under which the developer was required to pay the loan EMIs until completion of the flat. However, he alleged that the developer failed to make these payments, forcing him to pay the EMIs to the bank.
The developer denied the allegations, stating that the buyer had defaulted on scheduled instalment payments and was therefore not eligible for the pre-EMI scheme. It also cited COVID-related disruptions as one of the reasons for the construction delay.
After more than six years from the date of the agreement, the flat had still not been handed over. The buyer approached TG-RERA, also citing delays in obtaining the Occupancy Certificate. The buyer sought ₹10 lakh for mental agony, ₹18 lakh towards loss of estimated rental income, ₹10 lakh for alleged fraud and ₹2 lakh towards legal expenses.
TG-RERA, however, did not accept all the claims. Based on the available evidence, it awarded ₹1 lakh for mental agony and ₹20,000 towards legal expenses. The claims relating to estimated rental income and alleged fraud were rejected for lack of sufficient supporting evidence.
The authority directed the developer to pay the total compensation of ₹1.20 lakh within 60 days from the date of the order. Failure to pay within the stipulated period will attract interest at 10% per annum on the outstanding amount until payment.