Hafeezpet apt project delay: Vasavi Realtors ordered to pay 10.7 pc interest

RERA held that flats were not delivered even after the grace period and directed Vasavi Realtors to pay 10.70% annual interest from March 1, 2024, till possession.

Hyderabad: Telangana RERA has held that Vasavi Realtors LLP failed to deliver flats in its Vasavi Lake City–West project in Hafeezpet within the contractually agreed period, even after considering the grace period, and ordered the builder to pay 10.70 percent annual interest to the buyers from March 1, 2024, until possession is handed over.​

Complaints and project details Prominent construction firm Vasavi Realtors LLP and its partners Vijay Kumar Erram and Kande Ramesh faced a spate of complaints before the Telangana Real Estate Regulatory Authority (RERA).

The dispute relates to the “Vasavi Lake City–West” apartment project on Manjeera Pipeline Road at Hafeezpet in Hyderabad, where homebuyers alleged serious delay and contractual violations.​

30 purchasers file plea

Homebuyers’ allegations around 30 aggrieved purchasers, including Anasuya, Sushila Nunna and Ravikiran Nunna, complained that although they had entered into sale agreements in October 2021, the builder failed to complete construction and hand over the flats by the promised date of August 31, 2023.

The complainants stated that they had already paid almost the entire consideration for their flats, raised concerns about financial mismanagement and several construction and planning violations, and claimed that they were under severe financial stress due to the prolonged delay.​

Builder’s explanation

In its defence, Vasavi Realtors contended that the buyers had levelled false and malicious allegations, maintaining that the Covid-19 pandemic had caused labourers to return to their native places, leading to a serious disruption of construction activity at the Hafeezpet project.

The firm further argued that its agreements contained a clause permitting extension of the handover date in case of unforeseen events, and claimed that it was entitled to rely on this provision to postpone delivery of the flats.​

RERA’s observations

After examining both sides, Telangana RERA held that, even after adding the contractual grace period, Vasavi Realtors was required to hand over possession of Vasavi Lake City–West by February 28, 2024.

The authority noted that the builder had not delivered the flats by that date and rejected the reliance on Covid‑19 as a sufficient ground for continuing delay, particularly as the agreements were executed well after the peak pandemic phase.​

Interest order to buyers

Holding that the buyers who chose to remain in the project are entitled to compensation in the form of interest for each month of delay, RERA ruled that Vasavi Realtors LLP must pay interest at 10.70 percent per annum on the amounts paid by the complainants from March 1, 2024, until the actual date of handing over possession.

The order clarifies that this interest is payable for the entire period of delay under Section 18 of the RERA Act, while claims for additional compensation can be pursued separately before the Adjudicating Officer as per law.