Delayed construction in non-RERA complaint project: Homebuyers to get refund with 11% interest from builder as per Telangana RERA order

Telangana RERA Orders Refund with Interest

Telangana RERA (TGRERA) has ordered a builder to refund 62 homebuyers with 11% interest after finding the builder misused their funds on other projects. The builder, operating since 2021, failed to register the project under RERA, a legal requirement for projects exceeding 500 sq m or 8 apartments. Construction was only 20% complete by June 2024, far beyond the promised December 2023 possession date.

Key Findings

  • Refund Order: Builder must refund 62 homebuyers.
  • Interest Rate: 11% interest on the refund amount.
  • Reason: Misuse of funds on other projects.
  • RERA Violation: Failure to register the project under RERA.

Project Details

Criteria Details
Builder’s Operation Since 2021
RERA Registration Requirement Projects exceeding 500 sq m or 8 apartments
Construction Completion (June 2024) 20%
Promised Possession Date December 2023

TGRERA’s Stand

TGRERA deemed the builder’s actions a “glaring violation” of RERA regulations, highlighting a pattern of non-compliance across multiple projects. The authority emphasized that statutory approvals pending is not a justification for non-compliance. Experts hail the ruling as a reinforcement of RERA’s purpose: protecting homebuyers and regulating the real estate industry, warning buyers to verify registration and approvals.

Implications and Expert Advice

  • TGRERA’s View: Builder’s actions are a “glaring violation” of RERA regulations.
  • Pattern of Non-Compliance: The builder has shown a pattern of non-compliance across multiple projects.
  • Statutory Approvals: Pending approvals are not a justification for non-compliance.
  • Expert Opinion: Ruling reinforces RERA’s purpose of protecting homebuyers and regulating the industry.
  • Buyer’s Responsibility: Buyers are warned to verify registration and approvals before investing.

Source: https://economictimes.indiatimes.com/wealth/legal/will/delayed-construction-in-non-rera-complaint-project-homebuyers-to-get-refund-with-11-interest-from-builder-as-per-telangana-rera-order/articleshow/121511082.cms?from=mdr

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