Telangana’s real estate authority mandates refunds with 11% interest after a developer fails to deliver promised commercial units; over 20 complaints remain pending.
Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has directed Jayathri Infrastructures India Private Limited to refund Rs 9 lakh, along with interest to Shyam Sunder Gatla after the company failed to deliver a promised commercial unit in its Western Galaxy project at Gopanpally, Hyderabad.
The ruling comes amid a string of complaints against the developer, with over 20 similar cases pending before the authority.
The complainant had paid Rs 11 lakh for a commercial unit in the project based on a memorandum of understanding (MoU) signed in January 2022. The developer was to register a collateral plot as security until the office space was handed over by December 2024. The developer failed to honour the timeline, prompting the buyer to seek a refund and compensation.
TGRERA’s investigation revealed multiple violations. The project had not been registered under the Real Estate (Regulation & Development) Act, 2016, and inspections confirmed that no construction had taken place. The land remained vacant and entangled in ownership disputes, which had stalled progress. The authority concluded that the developer had misled buyers regarding the project’s status.
In its order, TGRERA instructed the developer to refund Rs 9 lakh (as per the MoU) to the complainant, along with 11 per cent annual interest calculated from the date of the MoU until the actual payment is made. The refund must be processed within 90 days.
In a separate case, the authority has also ordered Jayathri Infrastructure to repay Rs 27 lakh with 11 per cent interest to V. Mallikarjuna Rao for a commercial unit in the same Western Galaxy venture. The developer had failed to deliver possession by the promised deadline of December 2024, and the project was found to be non-existent. With more than 20 complaints now pending against Jayathri Infrastructure, TGRERA’s actions underscore growing concerns over the developer’s failure to meet obligations and ongoing project irregularities.
