TG RERA orders ₹44 lakh refund with interest in PVR Kshetra project dispute
HYDERABAD: The Telangana Real Estate Regulatory Authority (TG RERA) has directed PVR Developers to refund ₹44,00,000 with interest to two homebuyers after construction of a residential project in Shankarpally allegedly stalled despite substantial payments.
The complainants, R. Vijaylakshmi and K. Rajesh Kannan, told the authority they booked a flat in the “PVR Kshetra” project on February 24, 2024. The project is registered with TG RERA.
They said they paid ₹44,00,000, about 70% of the total sale consideration, based on assurances regarding timely construction and delivery. The buyers alleged that construction activities stopped from March 2024, but the developer continued collecting monthly payments while assuring that work would resume.
The complainants also stated they attempted to meet the Managing Director but communication was routed only through the Customer Relationship Manager. Responses later became irregular and were largely through WhatsApp messages, they said.
They further alleged that most project staff left the company, the Managing Director’s identity and accessibility remained unclear, the developer’s websites became inaccessible, and phone numbers were unreachable. The buyers said the delay caused financial hardship and mental distress.
Refund with interest
Invoking Sections 37 and 38 of the Real Estate (Regulation and Development) Act, 2016, the authority directed cancellation of the Agreement of Sale dated February 24, 2024. It ordered the developer to refund ₹44,00,000 with interest at 10.70% per annum (State Bank of India marginal cost of funds-based lending rate of 8.70% plus 2%).
The interest is to be calculated from the promised possession date of January 2025 until actual realisation. The authority directed the respondent to pay the amount within 30 days from receipt of the order.
Penalty warning for non-compliance
The authority said failure to comply would attract penalty under Section 63 of the Real Estate (Regulation and Development) Act, 2016. The complaint was disposed of with no order as to costs.
