REG NEWS
The Telangana Real Estate Regulatory Authority (TG-RERA) has directed Vasavi Realtors LLP to pay 10.70% annual interest to a homebuyer for delayed possession in its Vasavi Lake City West project at Hafeezpet. The Authority also warned the developer of action under Section 63 of the RERA Act, noting that more than 50 complaints have been received from homebuyers over the project.
The complaint was filed by Pydi Rajendra Allanki, who purchased a 2,240 sq ft flat in Tower 5 in July 2021. Under the Agreement of Sale, possession was to be handed over by August 31, 2023, with a six-month grace period. The buyer paid Rs.1.12 crore towards the flat and Rs.16.08 lakh towards stamp duty, GST, corpus fund and advance maintenance.
Though the flat was registered in his name in January 2024, lawful possession was not handed over. The buyer alleged that several works, including bathroom fittings, water and sewage connections, electricity meters, fire safety systems, parking areas and common facilities, remained incomplete. The developer attributed the delay to the Covid-19 pandemic and labour migration and said efforts were being made to complete the project.
TG-RERA rejected the defence, relying on its earlier order concerning the same project. It held that extensions of RERA registration or revised possession dates uploaded on the TG-RERA portal cannot override the possession date agreed in the sale agreement. The Authority also held that registration of the Sale Deed does not amount to lawful possession when construction remains incomplete and an Occupancy Certificate has not been obtained.
As the buyer chose to remain in the project, TG-RERA directed the developer to pay 10.70% annual interest on the amounts paid, from March 1, 2024, until lawful possession is handed over. Arrears up to the date of the order must be paid within 60 days, followed by monthly interest payments. The developer was also directed to complete the project and hand over possession within the statutory timelines. The Authority warned that any further default, non-compliance or grievance brought by homebuyers could attract proceedings under Section 63 of the RERA Act.