TG RERA dismisses homebuyer’s refund plea against builder

TG RERA noted that the builder had entered into sale agreements before obtaining RERA registration.

Hyderabad: The Telangana Real Estate Regulatory Authority (TG RERA) has dismissed a homebuyer’s complaint seeking a refund of Rs 25 lakh from Balaji Homes.

At the same time, the Authority directed that penalty proceedings be initiated against the builder for selling apartments before obtaining mandatory RERA registration.

Complaint over flat purchase

The case was filed by Bonala Nagarjuna against Balaji Homes in connection with Flat No. 101 in the Konathams IV Residency project located in Kodad, Suryapet district.

The complainant told TG RERA that he had paid Rs 25 lakh towards the purchase of the flat between January 2021 and October 2023.

He alleged that the builder failed to hand over possession, execute the sale deed and complete the project within a reasonable period. He sought a refund of the amount along with interest, compensation and litigation costs.

Builder denies allegations

Rejecting allegations, Balaji Homes said that the residential project had already been completed. Several buyers had taken possession of their flats, it added.

Stating that the agreed sale price of the flat was Rs 30.80 lakh, excluding GST, registration and amenities charges, the builder claimed that the complainant had paid only Rs 25 lakh.

The developer also maintained that the flat was ready for registration and possession after payment of the remaining amount.

During the examination of the records, TG RERA found that another Agreement of Sale for the same flat, in the name of the complainant’s wife, Bonala Vijaya, was executed on January 20, 2022.

TG RERA stated that the complaint was not maintainable as the agreement was in the wife’s name and she was not made a party to the case.

Builder faces penalty proceedings

Though, the complaint against Balaji Homes was dismissed, TG RERA noted that the builder had entered into sale agreements before obtaining RERA registration. It found that sale agreements took place in February 2021 and January 2022, however, the project received RERA registration on December 14, 2022.

Due to the violation, TG RERA directed its Secretary to begin proceedings under Section 59 of the RERA Act to impose a penalty on Balaji Homes.