TGRERA Orders Kompally Builder to Refund 12 Homebuyers with 10.7% Interest

The Telangana Real Estate Regulatory Authority (TGRERA) has ordered a realty firm and three others linked to the Bharathi’s Lake View apartment project in Kompally to refund the full amounts paid by 12 homebuyers, along with 10.7% annual interest. The regulatory authority issued the order after determining that the housing project failed to take off despite collecting payments in 2021.

In two common orders covering 12 separate complaints issued on August 25, TGRERA directed the builder, its partners, and subsequent parties involved in the venture to jointly and severally complete the refunds within 60 days.

The disputes involve the Lake View apartments, previously known as Lake View Towers, proposed in Kompally village within the Medchal-Malkajgiri district. Homebuyers stated that they entered into Memorandums of Understanding (MoUs) in 2021, with promised possession within 24 months alongside an additional six-month grace period.

According to the complainants, the promoter failed to obtain Hyderabad Metropolitan Development Authority (HMDA) approvals, did not secure RERA registration, and never commenced construction on the site. Furthermore, the buyers alleged that a major portion of the project land was subsequently sold.

The orders were passed by TGRERA members Laxmi Narayana Jannu and K Srinivasa Rao. The authority specified that the 10.7% annual interest rate was calculated at the current State Bank of India Marginal Cost of Funds-based Lending Rate (MCLR) plus 2% under Rule 15 of the Telangana Real Estate Rules, 2017. The interest applies from the specific date each payment was made until the actual refund is completed.