The RERA noted that the buyer has a right under Section 18 of the Real Estate (Regulation and Development) Act, which allows for compensation in the form of interest if possession is not delivered on time.
Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has directed Sri Surya Developers to complete development work on a plot that complainant Satheesh Muvva had purchased. The RERA asked the developer to deliver the possession within 45 days.
Satheesh had purchased a plot at the True Pride Bacharum project, located in Bacharam Village, Ranga Reddy District on January 8, 2021 for Rs 2,34,000.
The sale deed indicated that the payment had been made and the developer had supposedly delivered possession. However, the complainant claimed that he never received physical possession of the plot nor the promised amenities, despite repeated assurances from the developer.
The developer argued that delays in the project were caused by factors beyond their control, including disruptions from the Covid-19 pandemic. They also stated that their registration with RERA had expired in November 2022 and that they had applied for a one-year extension from HMDA which was still pending approval.
However, RERA noted that while the developer’s claim about delays due to the pandemic was acknowledged, the developer had failed to meet the terms of the sale deed. According to the sale deed, the developer had agreed to deliver possession, but it was found that only symbolic possession was handed over, not the actual physical possession.
The RERA noted that the buyer has a right under Section 18 of the Real Estate (Regulation and Development) Act, which allows for compensation in the form of interest if possession is not delivered on time.
In this case, since Satheesh had chosen to remain in the project and not withdraw, the developer was ordered to pay interest on the Rs 2,34,000 at an annual rate of 11 per cent (based on the State Bank of India’s Marginal Cost of Funds-based Lending Rate, or MCLR, plus two per cent). The interest will be calculated from the date of payment in January 2021, until possession is officially handed over. The developer is required to remit the total interest within 30 days from the date of the order.
RERA also rejected the developer’s request for an additional six-month extension to complete the project. It said that the developer had failed to apply for an extension within the statutory timeline and had not provided adequate evidence to justify the delay.
The complaint has now been disposed of, with no additional costs imposed on either party. However, the developer faces financial penalties due to the delay in possession and the failure to meet the project deadlines.
