TG RERA Orders EVK Projects to Refund Rs 9.36 Lakh to Kollur Homebuyer

The Telangana Real Estate Regulatory Authority has directed developer EVK Projects to refund Rs 9.36 lakh with 10.70 per cent annual interest to a homebuyer after finding that construction work had failed to commence at the EVK Avasa project in Kollur, Hyderabad. The regulatory authority also ordered an investigation into the project after discovering that it was not registered with TG RERA.

The ruling was issued following a complaint lodged by homebuyer N. Sneha, who had entered into an agreement of sale with EVK Projects in November 2021. Under the agreement, she booked a 1,170-square-foot, two-bedroom flat in the Kollur project for a total agreed sale consideration of Rs 37.44 lakh, paying an initial sum of Rs 9.36 lakh to the developer.

According to the complainant, the developer had promised to finish construction and deliver the flat within 36 months. However, the project failed to start, and there was no major construction activity at the site. The developer also did not provide any documentation demonstrating that the required statutory approvals had been secured for the residential development.

During the proceedings, EVK Projects failed to appear before the regulatory authority despite receiving repeated notices. As a result, the authority set the developer ex parte. The company also failed to submit progress reports, photographs, government approvals, or any other records to prove that construction had commenced or progressed at the site.

The regulatory authority observed that the 36-month completion window could not be exploited to indefinitely delay the homebuyer's legal rights, especially since the builder had failed to prove that it possessed the necessary approvals to execute the project.

Invoking Section 18 of the Real Estate (Regulation and Development) Act, TG RERA ordered EVK Projects to repay the Rs 9.36 lakh along with 10.70 per cent interest per annum, calculated from the date of payment until the full amount is settled. The authority mandated that the refund must be completed within 30 days of the order.

Additionally, TG RERA instructed its secretary to conduct an official inquiry into whether the unregistered Kollur project had been advertised, marketed, booked, or sold in violation of registration regulations, and to collect all relevant documentation regarding the development.