Hyderabad: Developer to Pay Interest on Money Paid for Stalled Project

Hyderabad: An investor, Pyreddy Vishwanath Reddy, has secured a refund of Rs 46.1 lakh along with interest from the developers of a stalled villa project. He had invested in a property being developed by N. Srinivasa Babu and R. Srikanth Reddy in Kishtareddypeta, Telangana but the project failed to begin despite the payment.

The case, heard by the Telangana Real Estate Regulatory Authority (TGRERA), revealed that the respondents had not registered the project with the authority before offering the property for sale, violating provisions under the Real Estate (Regulation and Development) Act, 2016. As a result, the respondents were found liable for a penalty of Rs 1,28,903.

The authority directed the developers to refund the full amount of Rs 46.1 lakh to Reddy, along with interest at an annual rate of 11.05 per cent from the date of the memorandum of understanding (MoU) signed on June 18, 2022. The refund, along with interest is to be made within 30 days.

Additionally, the authority imposed restrictions on the developers, prohibiting them from marketing, selling or offering any further units of the project without proper registration. Non-compliance would result in further penalties, as per the Real Estate Act.