TG RERA Orders ₹42.2 Lakh Refund With Interest Over Unregistered Plot Project

The Telangana Real Estate Regulatory Authority (TG RERA) in Hyderabad has directed a real estate consultancy firm to refund ₹42.2 lakh, along with 10.7 percent annual interest, to two property buyers after it was found marketing and collecting funds for plots in an unregistered real estate project.

In an order dated August 17, TG RERA members K Srinivasa Rao and Laxmi Narayana Jannu ruled that the consultancy firm, along with the project developer and the landowner, violated Section 3 of the Real Estate (Regulation and Development) Act by facilitating and permitting sale activities in a project that had not been registered with the regulatory authority.

The complainants, V Praveen Krishna and V Manjula Praveen Krishna, approached the consultancy firm in May 2022 after coming across advertisements for a venture named Sree Rugveda Brundavanam Hills. The buyers agreed to purchase plots numbered 229 and 230 in the project and paid a total of ₹52.2 lakh by June 7, 2022.

According to the complaint submitted to the authority, the consultancy firm demanded an additional ₹10 lakh the day after the initial payment was completed. The firm claimed that plot number 230 measured 377.7 square yards instead of the previously agreed 277.7 square yards.

Following this demand, the buyers requested an immediate cancellation of the booking and sought a full refund of their money. The buyers also cited subsequent concerns regarding title- and boundary-related issues associated with the land.

While the firm returned ₹10 lakh to the buyers, the cheques issued to clear the remaining balance of ₹42.2 lakh were subsequently dishonoured, prompting the complainants to approach TG RERA for relief.

After examining the matter, the regulatory authority found the marketing and sale process to be in clear violation of real estate regulations and ordered the full repayment of the outstanding amount alongside interest.