No Flat, No Progress: TG RERA Orders ₹41 Lakh Refund with Interest
HYDERABAD: The Telangana Real Estate Regulatory Authority (TG RERA) has directed BhuvanTeza Infra Projects Pvt. Ltd. to refund ₹41 lakh with interest to a homebuyer after failing to deliver a promised flat in its ‘Aura Velima Phase-I’ project.
The authority observed that the project remained stalled for years and the promoter showed no intent to complete it.
Buyer left waiting after full payment for flat
The complainant, K. Santhi Priyanka, purchased a 3BHK flat (Flat No. 110, Block-A, 1,700 sq ft) during the pre-launch phase. She paid ₹41 lakh in 2021, supported by receipts and an agreement of sale.
Despite receiving the payment, the developer neither completed construction nor handed over possession. The buyer then approached TG RERA seeking relief.
Builder absent from hearings, set ex parte
The authority noted that the respondent company failed to appear despite multiple opportunities. It was set ex parte, and the case proceeded based on the complainant’s submissions and documents.
TG RERA also recorded that the developer had a history of violations. It had earlier been penalised in multiple complaints related to the same project and declared a “defaulter” for breaching provisions of the Real Estate (Regulation and Development) Act, 2016.
The authority found that the project was marketed and units were sold without mandatory RERA registration.
Project stalled; completion deemed impractical
TG RERA held that the developer had neither initiated construction nor shown genuine intent to complete the project. It described the conduct as a “deliberate and deficient course of action”.
Given the prolonged delay, the authority ruled that directing completion of the project was impractical.
Refund with 10.7% interest within 45 days
Invoking Section 18 of the Act, TG RERA directed the builder to refund the entire ₹41 lakh with 10.7% annual interest (State Bank of India marginal cost of lending rate plus 2%) from October 9, 2021, until payment.
The refund must be made within 45 days from the date of the order.
Ban on future projects, penalty warning issued
The authority reiterated that the developer is barred from undertaking new real estate projects, advertising, or selling properties until all dues and compliance requirements are met.
It warned that failure to comply would attract penalties under Section 63 of the Act.
