Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has ordered Sri Punyabhoomi Developers and its managing director K. Sreenivasa Rao to refund Rs 4,22,500 along with 11 per cent annual interest to a complainant after the developer failed to deliver possession of an plot.
The real estate regulator also imposed penalties on the developer and an intermediary for violating the provisions of the Real Estate (Regulation and Development) Act, 2016.
The complainant, Golusula Santhosha, had entered into an agreement of sale with the developer on October 25, 2021 for an open plot measuring 165 square yards in the “Simhagiri Precious” project. Despite making a full payment of Rs 4,22,500 including registration fees, the developer failed to deliver the plot or complete the registration process.
In her complaint, Santhosha alleged that the company had avoided all communication with her, and made vague promises through an agent named Gopal for over three years. She also claimed that several other buyers faced similar issues, and accused the company of perpetrating widespread fraud.
After reviewing the evidence, RERA found that the project was not registered under the Act, in violation of Section 3 and that the managing director failed to respond to notices or appear before it. Additionally, the intermediary involved in the transaction, identified as Respondent 2, was found to be an unregistered real estate agent, violating Section 9 of the Act.
In its directive, RERA ordered the developer to refund Rs 4,22,500 to the complainant with 11 per cent annual interest within 45 days. A penalty of Rs 1,21,947 was also imposed on the managing director for failing to register the project with RERA. The intermediary was fined Rs 20,600 for engaging in real estate activities without proper registration. Both respondents were warned that failure to comply with the order would lead to further penalties under Section 63 of the Act.
